Shiite militia fighters supported by Iraqi security forces search homes looking for ISIL militants after regaining control of the town of Beiji on July 2, 2015. ISIL retaliated on Jul 6 with a number of suicide bomb attacks. AP Photo
Shiite militia fighters supported by Iraqi security forces search homes looking for ISIL militants after regaining control of the town of Beiji on July 2, 2015. ISIL retaliated on Jul 6 with a number Show more

ISIL suicide bombers strike Iraqi refinery town of Beiji



BAGHDAD // ISIL suicide bombers and fighters attacked the centre of Iraq’s northern oil refinery town of Beiji overnight, forcing the army and Shiite fighters to pull back, military sources and the local mayor said on Sunday.

The town of Beiji and its refinery – Iraq’s largest – have been a battlefront for more than a year. The extremists seized the town in June 2014 as they swept through much of northern Iraq towards the capital Baghdad.

Control of Beiji neighbourhoods has changed hands many times during the conflict.

The latest ISIL offensive comes after authorities said they controlled nearly the whole town and expected to drive insurgents from the refinery within days.

The militants attacked at about 8pm on Saturday with two suicide car bombings. The blasts were followed by fierce clashes that lasted until midnight and drove the army and forces from the mainly Shiite Hashed Al Shaabi - or Shiite Popular Mobilisation Units - from the centre of town, two army colonels said.

Beiji mayor Mahmoud Al Jabouri said there had been a pattern of withdrawals by ISIL fighters in the town followed by counter-offensives.

“Their lethal weapons are suicide attacks and snipers, and this is why we have fighting back and forth.”

Army officers said the army and Hashed groups were preparing a response.

“ISIL fighters are still holding positions in three neighbourhoods in Beiji and they are still receiving reinforcements,” said one of the army colonels.

In Anbar province west of Baghdad, witnesses said two rockets hit a crowd in the ISIL-controlled provincial capital Ramadi on Saturday evening, killing at least 18 people.

They said a group of people had gathered after the daily Ramadan fast to play muhaibis, a game where players have to identify a member of the opposing team who is hiding a ring.

“I heard a blast and saw fire coming from Dolphin Square. I ran to the place and saw vehicles carrying bodies and wounded covered with blood. They were innocent people playing a ring game; they were not making bombs,” said Haj Thamir Ahmed, a Ramadi resident who lives nearby.

In north-west Baghdad, at least three people were killed and 11 wounded when a bomb went off near a restaurant in the mainly Shiite district of Shulaa on Sunday morning, police and medical sources said. Another two people were killed by a bomb in Hussainiya on the city’s northern outskirts.

There was no immediate claim of responsibility for those attacks, but statements in the name of ISIL said the group carried car bombings on Saturday in Baghdad and Balad Ruz which killed at least 19 people.

Police said the deadliest attack occurred on Saturday night when a car bomb exploded on a commercial street in Baghdad’s western neighbourhood of Amil, killing nine people and wounding 24 others.

Earlier, police said a car bomb blast near a bus stop killed three people and wounded 15 in southern Baghdad. A bomb explosion near an outdoor market killed three people in Mhamoudiya town, just south of Baghdad.

Another car bomb went off near a row of restaurants in the Shiite town of Balad Ruz, about 70km north-east of Baghdad, killing four and wounding 14.

* Reuters and Associated Press

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Sukuk

An Islamic bond structured in a way to generate returns without violating Sharia strictures on prohibition of interest.

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.”