One of the defendants (right) with his lawyer. The accused's face has been hidden because of a German legal order. EPA
One of the defendants (right) with his lawyer. The accused's face has been hidden because of a German legal order. EPA
One of the defendants (right) with his lawyer. The accused's face has been hidden because of a German legal order. EPA
One of the defendants (right) with his lawyer. The accused's face has been hidden because of a German legal order. EPA

Far-right group sought to build ‘climate of fear’ for immigrants


Simon Rushton
  • English
  • Arabic

A gang of alleged far-right extremists have gone on trial in Germany charged with attacks on officials and refugees.

Four defendants were allegedly members or supporters of the Freital group – named after the town they operated in – which had tried to create "a climate of fear" for migrants moving into Germany in 2015, at the height of refugee crisis.

In Germany, there are widespread concerns at infiltration of far-right supporters in the police and military, and that extremists are becoming emboldened.

Steffi Brachtel, from Freital, began helping refugees in 2015 and found herself and her family the targets of threats.

"It was terrible for me to see the hate and judgement coming from my town. I was born here and had a happy childhood. But now there's also this ugly face," she told DW news.

Defendants in the case at Dresden's higher regional court, which is expected to last into 2021. EPA
Defendants in the case at Dresden's higher regional court, which is expected to last into 2021. EPA

"You feel powerless. I've always been confident, but then the threats get closer to you. You read the insults online that has information about your own family. It makes you paranoid.”

Members of the Freital group are believed to have taken part in attacks on the car of a local councillor, a politician’s office and a refugee shelter.

The trial of three men and a woman is scheduled to last until next year at the regional superior court in nearby Dresden.

Two of the men, aged 27 and 53, are accused of "membership of a terrorist organisation". The other two defendants, both aged 31, face charges that include being accessories to crimes carried out by the group.

Eight members of the Freital group were jailed in the same court in 2018 on terrorism and attempted murder charges. Prosecutors say the defendants now in court belong to a "second tier" of members.

Immigration became a hot-button issue in Saxony state, home to both Freital and Dresden, which shares a border with Poland and the Czech Republic.

There was already resentment at Chancellor Angela Merkel's liberal refugee policy that led to an increase in asylum seekers.

While Ms Merkel’s policies enjoyed broad support, the far-right used it to try to win supporters to its cause.

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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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