A drone used by Houthi rebels to launch attacks on Saudi Arabia. AP
A drone used by Houthi rebels to launch attacks on Saudi Arabia. AP
A drone used by Houthi rebels to launch attacks on Saudi Arabia. AP
A drone used by Houthi rebels to launch attacks on Saudi Arabia. AP

Saudi forces intercept two more Houthi drones from Yemen


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Saudi forces have intercepted two explosives-laden Houthi rebel drones, one of which targeted a southern city that has repeatedly come under attack over the past week.

One of the drones was aimed at a civilian area in Abha city and the second was shot down over Yemeni air space after it was launched towards the kingdom, the Arab Coalition fighting the Iran-backed Houthi rebels told the official Saudi Press Agency.

The coalition reported no casualties from the attacks late on Monday.

The Houthi's Al Masirah TV reported earlier that the rebels launched drone attacks on Abha airport, which they have repeatedly targeted over the past week.

They claimed another drone strike on Abha airport early on Monday but it was not confirmed by the Coalition.

Last Wednesday, the Coalition said a rebel missile attack on Abha airport wounded 26 civilians, drawing promises of "stern action".

Human Rights Watch denounced the strike as an apparent war crime, urging the Houthis to immediately stop all attacks on civilian centres in Saudi Arabia.

The rebels have intensified missile and drone attacks across the border in recent weeks and said that airports in Coalition member countries were valid targets.

The attacks come amid regional tension with Iran, which has been arming the rebels with sophisticated weapons.

After recent rebel attacks, Saudi state media reported the Coalition had been intensifying its air raids on rebel centres in the northern Yemeni province of Hajjah and the rebel-held capital Sanaa.

The coalition intervened in support of the internationally recognised Yemeni government in 2015, when it was driven out of the capital Sanaa.

Since then, the conflict has killed tens of thousands of people, many of them civilians, relief agencies say.

It has triggered what the UN describes as the world's worst humanitarian crisis, with more than 24 million Yemenis – or more than two thirds of the population – in need of aid.

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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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