Baghdad // Iraqi forces have captured a key airbase from ISIL group that can serve as a launchpad for retaking the city of Mosul from the extremist group, prime minister Haider Al Abadi said on Saturday.
He called for the people of Iraq’s north-western Nineveh province, of which Mosul is the capital, to “prepare for the liberation of their cities”.
Two Iraqi army divisions and counter-terrorism forces took the Qayyarah airbase 60 kilometres south of Mosul with air support from a US-led international coalition, Iraq’s joint operations command said.
Security sources said extremist fighters fled towards Mosul after the base was taken.
An officer taking part in the operation said bomb disposal teams were removing booby traps and mines left behind by ISIL.
Iraqi forces’ advance towards Mosul follows the recapture last month of Fallujah, a city 50 kilometres west of Baghdad, in a major setback for the extremist group.
That focused attention on the battle to remove ISIL from the north-west of the country.
ISIL has also come under pressure in neighbouring Syria, with US-backed rebel forces and regime troops backed by Russian air power making separate advances on its strongholds in the north-east.
On Saturday, the extremists shot down a Syrian helicopter near the city of Palmyra, killing both Russian pilots.
Russia’s defence ministry said the pilots “had used up all their ammunition and were on their way back when they came under the fire of terrorists and crashed.”
Meanwhile, Syria’s military on Saturday extended its Eid ceasefire for another three days, even as pro-government forces advanced against rebels in the north.
The military had declared a nationwide ceasefire for Eid al-Fitr from July 6, expiring July 8 at midnight, but it had little impact on the ground, as pro-government forces choked off the last supply route to opposition areas in the contested city of Aleppo on Thursday.
Rebels responded with a rocket barrage on residential areas in the government side of the city on Friday night, killing 44, state media said. The Britain-based Syrian Observatory for Human Rights put the toll at 38 dead, among them 14 children and 13 women. The Observatory said another nine people, including eight women and children, were killed in presumed Russian or Syrian government airstrikes and rocket attacks on the opposition-held side of the city.
* Agencies
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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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