Spokesman of the Saudi-led coalition Colonel Turki Al Maliki during a press conference in Riyadh, Saudi Arabia. AFP
Spokesman of the Saudi-led coalition Colonel Turki Al Maliki during a press conference in Riyadh, Saudi Arabia. AFP
Spokesman of the Saudi-led coalition Colonel Turki Al Maliki during a press conference in Riyadh, Saudi Arabia. AFP
Spokesman of the Saudi-led coalition Colonel Turki Al Maliki during a press conference in Riyadh, Saudi Arabia. AFP

Saudi Arabia intercepts two Houthi drones aimed at Khamis Mushait


Mina Aldroubi
  • English
  • Arabic

The Saudi-led coalition said on Monday that it intercepted and downed two drones launched by Yemen’s Houthi rebels near the southern city of Khamis Mushait.

The attack, which was intercepted by Saudi air defences, comes despite a unilateral truce announced by the coalition in early April as the coronavirus pandemic hit countries in the region.

“The Houthis continue to violate international humanitarian law by launching drones and deliberately targeting civilians and residential areas, threatening the lives of hundreds of civilians,” coalition spokesman Colonel Turki Al Maliki said.

Col Al Maliki said the attacks reflected the rebels' rejection of the truce, which was declared to allow Yemen to focus on the threat from the coronavirus.

The Iran-backed Houthis have been dismissive of the truce, with some rebel officials calling it a “political and media manoeuvre”, and have continued to conduct drone and missile attacks on Saudi Arabia.

Col Al Maliki said the drone attacks, which he blamed on the rebels and Iran's Revolutionary Guard, showed the real threat posed by the group and the Iranian regime supporting it.

The Houthis have launched more than 5,000 attacks since the truce kicked in on April 9, using all types of light and heavy weaponry as well as ballistic missiles, he said.

"The coalition forces will continue to take deterrent measures against the terrorist Houthi militia to neutralise and destroy their capabilities, in accordance with international laws," Col Al Maliki said.

Saudi Arabia and Houthi representatives launched back-channel talks late last year but violence has surged in recent months, threatening fragile peace deals in Yemen’s vital port city of Hodeidah.

Yemen’s civil war started with the Houthi rebels capturing the capital, Sanaa, in 2014. The following year, a Saudi-led coalition intervened to battle the rebels at the request of the internationally recognised government.

The conflict is at a stalemate, with the rebels retaining control of much of northern Yemen including Sanaa.

Saudi Arabia and the UN will host a virtual pledging conference for Yemen on Tuesday.

Top UN officials last week appealed for $2.4 billion (Dh8.8bn) to support operations in Yemen this year. UN agencies say 80 per cent of the population, or 24 million people, are dependent on aid to survive, while the country's battered healthcare system is struggling to cope with the outbreak of coronavirus on top of diseases such as cholera.

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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