Migrants sleep at a makeshift emergency centre at Barbate's municipal sports centre, in the south of Spain. Emilio Morenatti/ AP Photo
Migrants sleep at a makeshift emergency centre at Barbate's municipal sports centre, in the south of Spain. Emilio Morenatti/ AP Photo
Migrants sleep at a makeshift emergency centre at Barbate's municipal sports centre, in the south of Spain. Emilio Morenatti/ AP Photo
Migrants sleep at a makeshift emergency centre at Barbate's municipal sports centre, in the south of Spain. Emilio Morenatti/ AP Photo

EU hits instant problems over African migrant centre plan


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The UN migration agency on Friday cast immediate doubt on EU proposals to establish centres beyond their borders to process the claims of people fleeing war and poverty.

The deal appeared to have reduced the immediate heat over the migration ‘crisis’ in some EU states – particularly Germany - but was short on specific details about how any new system would work.

The 26-paragraph statement released on Friday included vague pledges to “explore the concept of regional disembarkation platforms”. The EU wants countries such as Algeria, Egypt, Morocco, Niger and Tunisia to process the claims of migrants seeking to travel to Europe with the aim of stopping many from making the final crossings.

On a visit to Tripoli this week, the Italian anti-migration interior minister, Matteo Salvini, called for a processing centre on the country’s southern border to prevent migrants being “funnelled” through Libya north to Italy.

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Read more:

Merkel’s coalition partners back migrant deal – for now

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The International Organisation of Migration (IOM) cast doubt on the prospect of such centres in Libya on Friday, saying there were “insurmountable” security concerns.

“Nothing can move forward outside the EU without the full agreement and engagement of non-EU states in the Mediterranean,” said an IOM spokesperson.

The EU statement said the system would work in close cooperation with “relevant third countries” but would likely require large payments to secure their agreement.

“It’s simply about pushing migrants out of our sight so we don’t have to look at the camps in Greece, or in Italy or on our borders in Calais,” Asad Rehman, executive director of anti-poverty charity War on Want, told Sky News.

The EU statement gave no detail on what form the centres would take, where they would go, or potentially how much they would cost. It also failed to answer what would happen to those whose claims are rejected.

For those migrants that arrived in the EU, countries would set up “controlled centres” on a voluntary basis and those whose claims were rejected would be returned, according to the statement.

“I am not optimistic that they will be better at handling asylum claims” than current national systems, said Georgina Wright, an EU policy expert at London-based think tank Chatham House.

Despite the lack of detail, she said it may have the effect of soothing widespread public discontent across Europe over migration, which has propelled right-wing anti-migration groups into positions of power across the continent.

The EU has in the past been highly critical of the so-called ‘Australian model’, where refugees are detained and their claims processed offshore in the Pacific Islands. The system allows Australia to return asylum seekers without them ever reaching Australian ports.

European leaders have agreed to increase funds for Spain and Morocco as more people choose the route between the two countries to cross to Europe, Spanish Prime Minister Pedro Sanchez said on Friday.

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

'Champions'

Director: Manuel Calvo
Stars: Yassir Al Saggaf and Fatima Al Banawi
Rating: 2/5
 

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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