This undated file handout photograph released by the Afghan Taliban on May 25, 2016 shows, according to the Afghan Taliban, the new Mullah Haibatullah Akhundzada. AFP
This undated file handout photograph released by the Afghan Taliban on May 25, 2016 shows, according to the Afghan Taliban, the new Mullah Haibatullah Akhundzada. AFP
This undated file handout photograph released by the Afghan Taliban on May 25, 2016 shows, according to the Afghan Taliban, the new Mullah Haibatullah Akhundzada. AFP
This undated file handout photograph released by the Afghan Taliban on May 25, 2016 shows, according to the Afghan Taliban, the new Mullah Haibatullah Akhundzada. AFP

Afghan Taliban leader says committed to deal with US


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The leader of the Taliban said Wednesday that militants were committed to a landmark deal with the US, despite being accused of carrying out thousands of attacks in Afghanistan since it was signed.

In a rare message released ahead of the end of the Islamic holy month of Ramadan next week, Haibatullah Akhundzada urged Washington "not to waste" the opportunity offered by the deal to end America's longest war.

"The Islamic Emirate is committed to the agreement... and urges the other side to honour its own commitments and not allow this critical opportunity to go waste," Akhundzada said in a statement, using the name the Taliban called Afghanistan when they were in power.

After months of negotiations, the Taliban and US signed a deal in February which stipulates Washington will withdraw all troops from Afghanistan by next year in return for security guarantees.

"I urge American officials to not afford anyone the opportunity to obstruct, delay and ultimately derail this internationally recognised bilateral agreement", the reclusive leader said.

Akhundzada hails from the Taliban's traditional bastion of Kandahar, and was appointed head of the group after a US drone strike killed his predecessor, Mullah Akhtar Mansour, in 2016.

Mansour had succeeded Mullah Omar, the one-eyed warrior-cleric who founded the group.

Akhundzada is a hardline religious scholar and a former head of the Taliban courts

US President Donald Trump's administration has made it a priority to end the war in Afghanistan, and in a bid to pull out foreign forces US officials have been pushing the Taliban and government leaders to hold peace talks.

The talks have stumbled, but the Afghan government was strengthened over the weekend by the announcement of a power-sharing deal between President Ashraf Ghani and his former chief executive Abdullah Abdullah, who will lead negotiations with the Taliban.

Under the US accord the Taliban pledged to stop attacking cities and foreign troops, but militants have continued to target Afghan forces in the provinces.

Analysts say the Taliban have been emboldened by the deal, and Afghan government officials have reported more than 3,800 attacks since it was signed, killing 420 civilians and wounding 906.

The US official who brokered the deal with the Taliban said last week the militants had kept up their end of the bargain - even if recent violence violated the spirit of it.

"The Taliban have implemented their agreement not to attack the coalition forces," said Zalmay Khalilzad, the US Special Representative to Afghanistan.

His remarks came after a horrific attack against a maternity hospital in Kabul that left dozens dead - including mothers and infants - and a suicide bombing at a funeral.

The Taliban denied involvement in the attacks, but President Ghani blamed them and ISIS extremists for the bloodshed.

"They've committed not to carry out attacks in 34 major cities, and they haven't done that, based on our assessment," Khalilzad said of the Taliban.

"But we believe that they're in violation of the spirit" of the deal, he said, adding the hospital attack was carried out by ISIS.

Following the recent attacks the government ordered security forces to switch to an "offensive" posture against the Taliban.

They responded by vowing to increase attacks against government forces.

The United Nations has warned that the spike in violence has led to increased casualties among civilians.

Akhundzada, in his message, blamed Afghan "air strikes and artillery fire" for causing civilian casualties.

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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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- Abdullah Ishnaneh, Partner, BSA Law