People infected with cholera lie on beds at a hospital in the Red Sea port city of Hodeidah, Yemen. The cholera outbreak has killed 115 people. Abduljabbar Zeyad / Reuters
People infected with cholera lie on beds at a hospital in the Red Sea port city of Hodeidah, Yemen. The cholera outbreak has killed 115 people. Abduljabbar Zeyad / Reuters

Houthi rebels declare state of emergency over cholera outbreak



SANAA // Houthi rebels in Yemen’s capital have declared a state of emergency, sounding the alarm over a spreading cholera outbreak that has killed dozens in the war-torn country and calling for urgent international assistance.

Cholera has killed 115 people and infected 8,600 in the past two weeks, the UN humanitarian coordinator in Yemen Jamie McGoldrick said on Monday.

Only a few medical facilities are still functioning and two-thirds of the population are without access to safe drinking water, the UN has said.

Yemen has been divided by civil war since the Iranian-backed Houthis seized power in the capital Sanaa in 2014. The Saudi-led coalition entered the conflict in March 2015 to reinstate the internationally-recognised president Abdrabu Mansur Hadi.

The Houthi-run health ministry said cases of cholera had risen and it could not contain the disaster, according to the rebel-controlled Saba news agency.

It launched an appeal for help from international humanitarian organisations to deal with the crisis.

The state of emergency is an “indication of how serious this crisis is”, Mr McGoldrick said on Monday.

He said medicine was arriving but urged donor countries to fulfil more than $1 billion (Dh3.67bn) in aid pledges made in Geneva last month.

“This rapid outbreak of cholera is just another dire manifestation of the humanitarian catastrophe that faces this country,” he said.

“These numbers will increase in the weeks and months ahead,” Mr McGoldrick warned.

Dominik Stillhart, the director of operations at the ICRC, said Yemen was “facing a serious outbreak of cholera”.

Doctors Without Borders (MSF) expressed fears that health authorities alone would not be able to deal with the outbreak.

It called on international organisations to “scale up their assistance urgently to limit the spread of the outbreak and anticipate potential other ones”.

This is the second outbreak of cholera in less than a year in Yemen, the Arab world’s poorest country. Cholera is a bacterial infection contracted through ingesting contaminated food or water.

At the Sabaeen hospital in Sanaa, deputy director Nabeel Al Najjar said the understaffed medical facility was struggling to cope with the high influx of patients.

The hospital, which lacks medicines, is receiving between 150 to 200 patients with cholera symptoms a day, he said.

“We are putting four patients in each bed, and have placed extra beds in tents and under the trees in the garden,” he said, adding rain had then complicated the arrangements.

Twenty-five districts in 11 governorates have been affected in the past four weeks, Mr McGoldrick said, with more than 50 other districts at risk.

“It’s very likely that the numbers are very underrepresented because ... over 50 per cent of the health facilities in this country are no longer functioning,” he said.

The World Health Organisation now classifies Yemen as one of the worst humanitarian emergencies in the world alongside Syria, South Sudan, Nigeria and Iraq.

The UN has warned 17 million people — equivalent to two-thirds of the population — are at imminent risk of famine in Yemen.

More than 8,000 people have been killed since March 2015, according to the WHO.

* Agence France-Presse, Associated Press and Reuters

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Skewed figures

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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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Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)