A power struggle is breaking out among Iran’s Shiite allies in Iraq, prompted by the death of their patron Qassem Suleimani, according to Iraqi sources and observers in the region.
The resurfacing of old militia rivalries could undermine Iran's proxies on their home turf in Iraq, somewhat limiting Tehran's immediate options, the sources told The National.
Tehran indicated it might still resort to its militia allies after directly attacking on Wednesday US targets in Iraq, where the militias are backing the government in cracking down on a civil uprising that erupted in early October.
But US forces could also be targeted in or from Syria, Yemen, Pakistan and Afghanistan, where Iran also sponsors militias, European diplomats following the tensions said.
A protest movement and unease about Hezbollah’s agenda could limit such a possibility from Lebanon, they said.
One of the diplomats said Iranian pronouncements since Wednesday "are basically saying expect the militias to do more after the (supposedly) measured Iranian retaliation".
On Wednesday, two bases in Iraq were targeted by what Iranian state media said were 15 ballistic missiles fired from Iran in retribution for the killing of Suleimani in a drone strike at Baghdad airport last week.
His Iraqi sidekick, Abu Mahdi Al Muhandis, was also killed in the attack. He was Iran’s top man in the Popular Mobilisation Forces (PMF), a grouping of militias nominally incorporated into the Iraqi state.
The Iranian missiles caused no casualties. Supreme Leader Ali Khamenei said the attack was "a slap on the face" of the US but “the corruptive presence of the US in the region of West Asia must be stopped”.
In an interview with CNN, Foreign Minister Javad Zarif suggested that Iran’s militia allies could neutralise US military superiority as part of what he termed popular support across the region for Iranian goals.
“The United States has to wake up to the reality that the people of this region are enraged and… want the United States out,” he said.
In Iraq, Qais Al Khazali, head of Asaeb Ahl Al Haq militia, said it was time for Iraqis to take their own retribution against the US. Akram Al Kaabi of Harakat Hezbollah Al Nujaba, another militia supported by Iran, echoed his call.
Mr Al Khazali’s group is an offshoot of the Mahdi Army, founded by populist cleric Moqtada Al Sadr. The two are known to despise each other, but when it comes to splitting spoils from their influence on the Iraqi state, they co-operate.
Mr Al Kaabi had split from Mr Al Khazali’s militia and formed his own, but the two are not sworn rivals like Mr Al Khazali and Mr Al Sadr.
Mr Al Sadr sought to portray himself as more statesmanlike than his rivals after the killing of Mr Al Muhandis. He declared himself “the leader of the resistance”.
But Mr Al Sadr tempered his rhetoric after the Iranian retaliation, saying the tensions were over and that the other militias must refrain from any military action and silence what he described as militant voices among them.
A Shiite political source with good ties to the three groups said their differences bursting into the open show the effects of Suleimani’s absence, but predicated that Iran would re-establish itself through other operatives.
“Iran will not allow the militias to get out of control. It will not deal with them with force now because that would create problems for it,” the source said.
The Iranian attack on US troops helped the clerics in power in Tehran save face without subjecting the country to US military punishment, in line with their doctrine of avoiding a conventional confrontation.
Central to this doctrine is the so-called asymmetrical warfare practised by Suleimani. His assassination, however, might not have occurred, at least not so soon, had the Iraqi militias not attacked a US base in Iraq in December.
The attack killed an American contractor, raising the level of escalation between Washington and Tehran.
Suleimani’s killing marked a turning point in that the US no longer refrained from going directly after Iranian targets in response to attacks by Tehran’s proxies.
Even if they re-unite, the militias, in Iraq but also Syria, may no longer be able to resume their role as a shield taking punishment on behalf of Iran.
THE BIO
Born: Mukalla, Yemen, 1979
Education: UAE University, Al Ain
Family: Married with two daughters: Asayel, 7, and Sara, 6
Favourite piece of music: Horse Dance by Naseer Shamma
Favourite book: Science and geology
Favourite place to travel to: Washington DC
Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
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.”
UAE%20v%20West%20Indies
%3Cp%3EFirst%20ODI%20-%20Sunday%2C%20June%204%20%0D%3Cbr%3ESecond%20ODI%20-%20Tuesday%2C%20June%206%20%0D%3Cbr%3EThird%20ODI%20-%20Friday%2C%20June%209%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3EMatches%20at%20Sharjah%20Cricket%20Stadium.%20All%20games%20start%20at%204.30pm%0D%3Cbr%3E%0D%3Cbr%3E%3Cstrong%3EUAE%20squad%3C%2Fstrong%3E%0D%3Cbr%3EMuhammad%20Waseem%20(captain)%2C%20Aayan%20Khan%2C%20Adithya%20Shetty%2C%20Ali%20Naseer%2C%20Ansh%20Tandon%2C%20Aryansh%20Sharma%2C%20Asif%20Khan%2C%20Basil%20Hameed%2C%20Ethan%20D%E2%80%99Souza%2C%20Fahad%20Nawaz%2C%20Jonathan%20Figy%2C%20Junaid%20Siddique%2C%20Karthik%20Meiyappan%2C%20Lovepreet%20Singh%2C%20Matiullah%2C%20Mohammed%20Faraazuddin%2C%20Muhammad%20Jawadullah%2C%20Rameez%20Shahzad%2C%20Rohan%20Mustafa%2C%20Sanchit%20Sharma%2C%20Vriitya%20Aravind%2C%20Zahoor%20Khan%0D%3C%2Fp%3E%0A
Countries recognising Palestine
France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
The five pillars of Islam
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This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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