EU envoy extends visit to Yemen to try to end standoff


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SANAA // A United Nations envoy to Yemen has extended his week-long visit to continue talks with parties seeking to end the prolonged political standoff between the country's ruling party and the opposition.

Jamal bin Omar, who arrived on July 20, was expected to leave today after warning on Monday that Yemen is facing collapse and poses a serious threat to the region and the rest of the world. His visit has been extended until the end of the month.

"Yemen is suffering from the collapse of the state. There are regions, with acknowledgement of the state officials, [that are] out of control. This is a serious situation," Mr bin Omar told reporters on Monday.

He said both the ruling party and the opposition coalition have laid down several conditions to resume "conciliation dialogue" but did not provide any details.

"Discussions are under way and there is hope that we will find a solution to this crisis," he said.

Opposition officials said they met the UN envoy on Saturday to tell him they will refuse all talks until power is transferred to Vice President Abdurabu Mansur Hadi. However, the ruling party officials said any power transfer from President Ali Abdullah Saleh must be done through an election.

In Brussels yesterday, the European Union's foreign policy chief, Catherine Ashton, said Yemen must launch a "credible" transition plan and all sides in the political crisis should reject violence.

Speaking after talks with Yemen's foreign minister, Abu Bakr Al Kurbi, Lady Ashton urged the government to work with all parties to "immediately take forward" a political transition after six months of anti-government protests.

"Individual and party differences must be set aside in favour of the broader interests of the Yemeni nation," she said.

She said the Gulf Cooperation Council plan which calls for President Saleh to cede power within 30 days in return for immunity from prosecution, paving the way for elections, was still the key point of reference for transition.

* With additional reporting from 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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