An armoured vehicle of the Syrian Democratic Forces is seen along a road at the frontline in Raqqa, Syria October 8, 2017.          REUTERS/Erik De Castro
The carnage of the frontline in Raqqa, Syria. REUTERS/Erik De Castro

Raqqa civilians held by ISIL as ‘human shields’, coalition warns



Civilians in ISIL’s long-time Syrian capital of Raqqa are being held as “human shields” as the militant group loses control of the city, the US-led coalition has warned.

A statement issued on Tuesday by the Combined Joint Task Force Inherent Resolve said that discussions are under way to determine the best way to enable civilians trapped by ISIL to exit the city, "where some are being held as human shields by the terrorists”.

The task force, which was set up by the US Central Command to coordinate military efforts against ISIL, said that the Raqqa Civil Council, in conjunction with local Arab tribal elders, is taking a special interest in protecting civilians and preventing a significant humanitarian crisis as they flee the last ISIL-held portion of Raqqa.

"We have a responsibility to defeat Daesh while preserving civilian life to the greatest extent possible," said the coalition’s director of operations brigadier general Jonathan Braga.

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He added: "Make no mistake: a lot of hard fighting remains and we are committed to the lasting defeat of Daesh."

Those departing Raqqa who are found to have fought for ISIL will be turned over to local authorities to face justice, the statement said.

The US-backed Syrian Democratic Forces broke into Raqqa in June, and has since captured around 90 per cent of the city, with the help of heavy US-led air strikes.

Tens of thousands of civilians have fled, but with fighting and air strikes concentrated on a shrinking ISIL-held section of the city, the exodus has slowed to a trickle.

As its options dwindle, jihadists are taking up positions inside residential buildings and dragging along terrified civilians for cover against a ferocious US-backed onslaught.

Locals who managed to flee describe being herded into apartments in buildings used by jihadists as makeshift military bases, and serving as human shields for fighters as they collect water.

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Civilians say the tactic - used elsewhere by the group to slow its opponents - is increasingly putting them in the cross hairs of US air power and allied fighters as they battle ISIL in densely populated districts near Raqqa's centre.

In late September, the coalition acknowledged the deaths of 735 civilians in its strikes on Syria and Iraq since 2014, but the Britain-based Observatory says hundreds have been killed in Raqqa alone since June.

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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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