Assad insists he is winning war as regime warplanes pound Raqqa


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BEIRUT // Syrian warplanes pounded Raqqa yesterday, a day after rebels seized security buildings in the city and captured the provincial governor, activists said.

Yet Bashar Al Assad, Syria's president, said yesterday that his regime was defeating the "conspiracy" against the country, while his forces hit back against rebels in Raqqa, raising questions about whether they would be able to maintain their hold on the city.

If the rebels succeed, it would mark the first time an entire city has fallen into opposition hands, dealing both a strategic and a symbolic blow to Mr Al Assad's regime.

The Britain-based Syrian Observatory for Human Rights said opposition fighters captured the governor of Raqqa province, Mr Jalali, after clashes overnight near the governor's office in the provincial capital with the same name. The Observatory said the head of Assad's ruling Baath party in the province, Salman Al Salman, also was in rebel custody.

An activist in the city who gave only his first name Amir said the two were detained by Al Nusra Front, a group with links to Al Qaeda, and other fighters who swept into the city on Monday.

"They are being treated well," he said.

Fighting continued near an intelligence building in the city as well as several other places, the Observatory director said yesterday, adding that "some of Raqqa is still under regime control".

The government also remained in control of military air bases outside the city and was using them to deploy warplanes to fight back against the rebel gains.

The Observatory said government warplanes carried out airstrikes on two targets in the city, causing an unspecified number of casualties.

Mr Al Assad, in comments published in the Lebanese newspaper Al-Akhbar, said his opponents were "playing a game of survival" and that his forces had the upper hand on the battlefield. "Significant successes have been made, whose strategic importance is clear even to those in the region and the rest of the world who are making useless plans against Syria's security," he is quoted as saying. Jordan's King Abdullah II yesterday called on world nations to help Jordan, Turkey and Lebanon shoulder "the tremendous burden" of caring for hundreds of thousands of refugees who have fled the violence in Syria. The United Nations says there are about 925,000 displaced Syrians around the region. Jordan is hosting more than 420,000 Syrian refugees.

* With additional reporting by Agence France-Presse

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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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