Deadlock in Yemen over Gulf Cooperation Council peace plan



SANA'A // Ali Abdullah Saleh yesterday welcomed a proposal by the Gulf Cooperation Council to transfer power and end Yemen's political crisis, but his opponents again rejected the plan and demanded the president's immediate resignation.

The proposal, put forth by the GCC on Sunday, urged Mr Saleh to cede power to his deputy and called for the creation of an opposition-led national unity government, Abdel Latif al Zayyani, secretary general of the GCC, told reporters in Riyadh.

The GCC did not specify a time frame for a transfer of power and included immunity for Mr Saleh and his family from prosecution for alleged crimes during his 32-year leadership.

"The presidency welcomes the efforts of our brothers in the Gulf Cooperation Council to solve the current crisis in Yemen," read a statement released yesterday by the president's office.

The statement continued: "He [Saleh] has no reservations about transferring power peacefully within the framework of the constitution." In recent days Mr Saleh has indicated he would transfer power only when his term ends in 2013, a condition that has already been rejected by the protesters.

Protest leaders said yesterday the GCC plan does not "meet our demands for the quick departure of Saleh and his family or a trial of the killers of protesters".

The opposition said if Mr Saleh wants dialogue he should conduct it with the "martyrs of the revolution".

"We completely reject the GCC proposal as it is a lifejacket for Saleh and does not show any support to the Yemeni people," said Tawkul Karman, a protest leader and organiser of the initial anti-Saleh protests.

"The regime of Saleh has lost its legitimacy, it should not transfer its power. We want to try this regime and restore the money it looted. We are going to do this regardless of the sacrifices," Ms Karman said.

Another protest leader said anti-government supporters are prepared to stay in the streets until their goals are achieved.

"Our demands are clear: the immediate departure of the president and his relatives and their prosecution. If this is out of question, we are ready to stay here at the protest sites for months," protest leader Mohammed Saeed said.

Hundreds of thousands of Yemenis staged protests in 13 provinces yesterday, calling for the end of Mr Saleh's presidency and the prosecution of those responsible for the killings of more than 125 protesters since the turmoil began in Yemen on February 11.

In Taiz yesterday, thousands of protesters marched for several kilometres through the streets to Freedom Square where tens of thousands have been camped out for more than two months demanding the resignation of Mr Saleh.

In the capital Sana'a, tens of thousands of demonstrators took to the streets yesterday morning and afternoon. Thousands of school students chanted: "No school until the president falls".

The Joint Meeting Parties, an six-party opposition coalition, also said they would not accept any proposal for Yemen unless it clearly stated the immediate departure of Mr Saleh.

"This new GCC plan is different from the one which was put forth last week and we accepted," said Mr Hasan Zaid, a JMP leader.

"Accepting this plan as it is will be a betrayal to the blood of the martyrs who were killed during protests," Mr Zaid said.

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  • US sanctions on Iran’s energy industry and exports took effect on Monday, November 5.
  • Washington issued formal waivers to eight buyers of Iranian oil, allowing them to continue limited imports. Iraq did not receive a waiver.
  • Iraq’s government is cooperating with the US to contain Iranian influence in the country, and increased Iraqi oil production is helping to make up for Iranian crude that sanctions are blocking from markets, US officials say.
  • Iraq, the second-biggest producer in the Organization of Petroleum Exporting Countries, pumped last month at a record 4.78 million barrels a day, former Oil Minister Jabbar Al-Luaibi said on Oct. 20. Iraq exported 3.83 million barrels a day last month, according to tanker tracking and data from port agents.
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  • Oil exports from Iran, OPEC’s third-largest supplier, have slumped since President Donald Trump announced in May that he’d reimpose sanctions. Iran shipped about 1.76 million barrels a day in October out of 3.42 million in total production, data compiled by Bloomberg show.
  • Benchmark Brent crude fell 47 cents to $72.70 a barrel in London trading at 7:26 a.m. local time. U.S. West Texas Intermediate was 25 cents lower at $62.85 a barrel in New York. WTI held near the lowest level in seven months as concerns of a tightening market eased after the U.S. granted its waivers to buyers of Iranian crude.
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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.”