Failure of peace talks blamed on rebels


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SANA'A // The Yemeni government said yesterday that military offensives against al Houthi rebels in the north will continue, blaming the rebels for the collapse of efforts to reach a peace deal. The state's top security committee said the rebels did not agree to the six conditions the government set earlier this month to end hostilities in the northern province of Sa'ada where fierce fighting between government troops and the rebels has been going on for more than two weeks.

"The political leadership and government have been keen to prevent bloodshed in the holy month of Ramadan and the terrorism and sabotage elements were informed that they should announce their commitment to the six items ... However, these terrorist elements did not respond to the calls of the political leadership," said the committee in a statement yesterday. The government conditions required the rebels withdraw from all districts, remove checkpoints they had set up in some places, clarify the fate of kidnapped foreigners, hand over those behind the kidnappings, return captured military and civilian equipment and refrain from intervening in the state's local affairs.

Ali Abdullah Saleh, the president, vowed on August 19 to crush and uproot the rebels, but two days later renewed his government's ceasefire conditions to end the fighting, which has been intermittently going on since 2004. On Wednesday, Mr Saleh was back on the offensive. "Now, we will cleanse all districts of Sa'ada. We will not allow [al Houthis] to mess around with the security and stability. They have horrified the citizens and slaughtered clerics and sheikhs," Mr Saleh said while addressing Badr military brigade staff members who will be deployed to Sa'ada soon.

Mr Saleh said additional military units would be commissioned to join the battle in Sa'ada and Harf Sifyan district in the neighbouring province of Amran. "We thought that they would respond to the call of logic and reason; they have burnt the farms, killed women and children ? Had they been an organised force, we would have crushed them in the first weeks of the battle," Mr Saleh said. "We are, however, facing a guerrilla war. We will change our tactics ? We are confident that we will able to cleanse all these areas in the coming weeks."

The ministry of defence said yesterday the army has been able to secure and open up a number of roads as well as inflict heavy damages on the rebels. "The air force was able to painfully hit the terrorism and rebellion elements in an area close to Dhahyan where there was a big pile of vehicles carrying weapons and supply; they were destroyed, leaving heavy damage among them. Antiterrorism team forced the rebels to leave their positions at Madha," a defence ministry statement said.

The rebels, however, denied reports that the army controlled Harf Sifyan city and al Malahidh in Sa'ada, accusing the government of announcing "phantom achievements". The office of Abdulmalik al Houthi, the rebel leader, sent an e-mail saying the rebels were able to repulse the army attacks and destroyed a tank and an armoured vehicle. Such reports, however, could not be independently verified as both Sa'ada and Harf Sifyan are closed to journalists.

The European Union on Wednesday called for an immediate end to the fighting. "While recognising the responsibility of the Government of Yemen to maintain peace and security within its territory, the European Union is concerned by the recent escalation of the fighting," the Swedish EU presidency said on Wednesday in a statement on behalf of the 27 member states. The EU statement voiced concern "about the impact of a further spread of the conflict to neighbouring Yemeni governorates and to the wider region".

"The European Union calls upon all parties to cease fighting immediately. The European Union considers that only a comprehensive political solution can achieve lasting peace," the statement said. The International Committee of the Red Cross said the ongoing fighting had complicated the delivery of humanitarian aid and restricted the movements of ICRC and Yemen Red Crescent personnel. "Thousands of people have fled the fighting to seek refuge in Sa'ada city and surrounding areas. They probably could not take much with them, and many are now left stranded without even a roof to protect them from the rain," said Jean-Nicolas Marti, ICRC's head of delegation in Yemen, in a press statement on Wednesday.

According to estimates by the ICRC and Yemeni Red Crescent Society, there are now more than 12,000 refugees in Sa'ada and 4,000 in Amran. With numbers increasing daily, "the capacities of existing camps for displaced people are being strained to the limit", the statement said. malqadhi@thenational.ae

WRESTLING HIGHLIGHTS

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.”