Azerbaijan extends deadline on Armenian withdrawal in Kalbajar


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Azerbaijan on Sunday agreed to extend the deadline for Armenians to withdraw from the Kalbajar district as residents of the area began a mass withdrawal of the mountainous province as part of a Russian-brokered peace accord to end weeks of fighting over Nagorno-Karabakh.

"Azerbaijan agreed to prolong the deadline for the withdrawal from Kalbajar of Armenian armed forces and of illegal Armenian settlers until November 25," President Ilham Aliyev's foreign policy adviser, Hikmet Hajiyev, said.

Armenia was due to begin handing over the disputed territory to Azerbaijan on Sunday.

Residents of the Kalbajar district in Azerbaijan, which has been controlled by Armenian separatists for decades, piled furniture and kitchenware into vehicles before leaving for Armenia and some among the departing ethnic-Armenians said they had exhumed graves they feared would be desecrated by Azerbaijanis.

Thick plumes of smoke were rising over the valley near the village of Charektar after residents set their homes on fire preferring to leave devastation in their wake and homes that would be uninhabitable by Azerbaijanis.

The president of Azerbaijan is promising that Christian churches will be protected when the Muslim country takes possession of areas formerly controlled by Armenians.

Kalbajar is home to the well-known Dadivank monastery of the Armenian Apostolic Church. A day before the territory’s planned handover, workers removed many of the monastery’s sacred objects.

President Ilham Aliyev’s office said he made the promise in a telephone call with Russian President Vladimir Putin, who deployed peacekeeping forces in the areas this week.

Moscow's peacekeeping mission, which the military said included soldiers that previously were stationed in Syria, comprises some 2,000 troops for a renewable five-year mission.

The ex-Soviet rivals agreed to end hostilities earlier this week after efforts by Russia, France and the US to get a ceasefire fell through during the nearly two months of clashes.

A key part of the peace deal includes Armenia's return of Kalbajar, as well as the Aghdam district by November 20 and the Lachin district by December 1, which have been held by Armenians since a devastating war in the 1990s.

Kalbajar was almost exclusively populated by ethnic Azerbaijanis before they were expelled by Armenians in the 1990s war following the break up of the Soviet Union, and a majority of the homes being abandoned previously belonged to Azerbaijanis.

Hundreds, if not thousands, of combatants and civilians have been killed since fighting flared anew in late September.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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