Kurdish forces face weapons shortage in battle for Sinjar


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Mount Sinjar // There was a surprising dearth of new weaponry on Mount Sinjar considering the scale of the ISIL onslaught that took place earlier this year.

When The National visited last month, many tribal sheikhs complained that most of what they received are old weapons from peshmerga forces.

With a minimal front-line presence, the Kurdistan Democratic Party (PDK) had distributed the weapons to loyal tribal fighters.

Sheikh Khery of the Jafrian tribe, who had been fighting in the area around Shashem Temple on the north-western side of the mountain, said he had only received one heavy machine gun and a handful of AK-47s.

Sheikh Qassem Derbo, who had received more help than most other groups, said he had been handed 10 sniper rifles, seven rocket-propelled grenades (RPGs), six light machine guns, two mortars and a 12mm Dushka machine gun, and some trucks over the past three months.

Sheikh Khalef Qassem Melko of the Simoki tribe, who is fighting in the town of Bara, said he had not received most of the weapons the PDK promised him, but he hoped to take a helicopter to Iraqi Kurdistan to collect them.

Sheikh Khalef Murad Aato, of the Hababa tribe, said he had received 25 AK-47s, one 12mm machine gun, two sniper rifles, two RPGs and two light machine guns. Sheikh Ghazi of the Osseva tribe said he had received absolutely nothing from the PDK.

Sheikh Qassem Shasho had received the most, including seven heavy machine guns, at least 20 RPGs, 20 sniper rifles, some AK-47s, and a number of mortars.

Most of these tribal fighters also said the majority of the weapons supplied were older, previously used models. For example, after Sheikh Derbo claimed that all the weapons the PDK had given him were new, one of his soldiers corrected him, noting that it was a mix of old and new weapons.

Many fighters in the Sinjar area also carry M-16s acquired from dead ISIL fighters. The weapons had been supplied by the United States to Iraq’s army and were taken by ISIL from captured military bases in places such as Mosul.

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Rating: 3/5

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Favourite book: I Am Pilgrim by Terry Hayes or Red Notice by Bill Browder.

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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.”