More than 50,000 asylum seekers have been waiting longer than six months for the UK government to decide their fate, it has emerged.
The number of people enduring a six-month wait or longer has risen by 59 per cent over the past year.
“Thousands of people have to wait years for a final decision on their claim, meaning they are left in limbo and unable to plan for their futures,” the UK Refugee Council said.
“Each one of these represents a person anxiously awaiting news of their fate, with no idea how much longer they will be forced to live in poverty.”
The UK government said the Covid-19 pandemic had affected the operational capacity of Britain's immigration system and led to fewer decisions being made.
The total backlog of asylum seekers waiting for news was 66,185 people, of whom 50,084 had waited at least six months.
“This has been happening when the numbers of people who seek safety in the UK is in fact decreasing,” said Refugee Council chief executive Enver Solomon.
There were about 27,000 new asylum applications in the UK in the year ended March 2021, a drop of nearly a quarter from the previous year.
As the pandemic led to drastic travel restrictions across the world, the numbers of work visas, student visas and family permits granted in the UK were all down as well.
The asylum applicants included 1,200 people from Iran, 1,086 from Iraq, 315 from Syria and 236 from Afghanistan. More than 500 were stateless.
Some applied for asylum at ports of entry in the UK, but the majority lodged applications from their home countries.
A total of 8,640 people were granted some form of asylum, humanitarian protection or resettlement.
Patel eyes controversial asylum overhaul
UK Home Secretary Priti Patel told Parliament in March that "the system is becoming overwhelmed" as she unveiled controversial plans which would make it harder for asylum seekers to get permanent status in Britain.
“Our system is collapsing under the pressure of parallel illegal routes to asylum, facilitated by criminal smugglers,” she said.
“The existence of parallel routes is deeply unfair, advancing those with the means to pay smugglers over those in desperate need.”
Under the plans, seekers would be denied permanent status in the UK if they enter illegally from another safe country such as France.
Those who cannot be deported would be given a temporary protection status and could be removed at a later date.
The planned changes have been described as inhumane by the British Red Cross.
"We should not judge how worthy someone is of asylum by how they arrived here," the charity’s chief executive Mike Adamson said.
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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.”