A wounded man at a makeshift hospital in the rebel-held area of Douma, east of Damascus, following Syrian regime air strikes on August 12, 2015, that killed at least 27 civilians. Abd Doumany / AFP
A wounded man at a makeshift hospital in the rebel-held area of Douma, east of Damascus, following Syrian regime air strikes on August 12, 2015, that killed at least 27 civilians. Abd Doumany / AFP
A wounded man at a makeshift hospital in the rebel-held area of Douma, east of Damascus, following Syrian regime air strikes on August 12, 2015, that killed at least 27 civilians. Abd Doumany / AFP
A wounded man at a makeshift hospital in the rebel-held area of Douma, east of Damascus, following Syrian regime air strikes on August 12, 2015, that killed at least 27 civilians. Abd Doumany / AFP

Hizbollah and Syrian rebels agree on 48-hour truce


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BEIRUT // Hizbollah and Syrian rebels are observing a 48-hour ceasefire in a border town and two Shiite villages in northern Syria, the Lebanese militant group’s television station has reported.

Al Manar TV and the Britain-based Syrian Observatory for Human Rights say the ceasefire in Zabadani near the Lebanese border and the villages of Foua and Kfarya went into effect on Wednesday morning.

Hizbollah and Syrian troops have been trying to capture the one-time rebel stronghold of Zabadani for more than a month.

A coalition of rebel groups which calls itself Jaysh Al Fateh, or Conquest Army, retaliated by attacking Foua and Kfarya, which are home to mostly Shiite villagers. A large number of civilians are trapped by the fighting there.

Meanwhile, Syrian regime air strikes on the Eastern Ghouta region near Damascus killed at least 27 civilians, the Observatory said.

The Observatory said at least 120 people were injured in the raids, several of them seriously, and that the death toll was likely to rise.

The air raids hit the towns of Douma, Saqba, Kafr Batna and Hammouriyeh in Eastern Ghouta, a rebel stronghold region as rebels fired dozens of rockets into Damascus, killing at least four people, according to Syria’s interior ministry.

The ministry, quoted by state television, said “four people were killed and 58 others were wounded, in addition to material damage”, in residential neighbourhoods of Damascus.

The Observatory said rebels fired a barrage of at least 50 rockets and put the toll at five dead – four civilians and a soldier – with 59 people hurt.

Rebels often fire into the Syrian capital from rear bases on the outskirts of Damascus, including at times barrages of hundreds of missiles.

The government regularly carries out air strikes against rebel-held areas on the outskirts of Damascus, particularly Eastern Ghouta which is also under regime siege.

On Wednesday, Amnesty International accused the government of war crimes against Eastern Ghouta residents, saying heavy aerial bombardment was compounding misery created by the blockade.

* Agence France-Presse

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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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