Rival leaders meet in Beirut



BEIRUT// In a long-awaited meeting designed to dampen Lebanon's fractious sectarian tensions, Sheikh Sayid Hasan Nasrallah, the secretary general of Hizbollah, met with his top political foe, Saad Hariri, the leader of the Future Movement, in a secret location in southern Beirut on Sunday night.

The Hizbollah-led opposition - which is dominated by Lebanon's large Shiite population - has been at odds for more than three years with a coalition of Sunni, Christians and Druze aligned with the West over the direction of Lebanon and the right of Hizbollah to continue unilateral armed resistance to Israel. The political and sectarian tensions were first exacerbated by the July 2006 war with Israel, which many Lebanese considered was provoked by Hizbollah at the cost of more than 1,000 civilian lives and billions of dollars in damage. Hizbollah responded with a political drive to remove the Sunni-dominated government from power that eventually turned bloody in May. A Qatari-led effort stopped the widespread violence that killed more than 60 people.

As the smoke from a series of street battles cleared, little doubt was left that Hizbollah could militarily control Lebanon, forcing the government to agree to a power-sharing arrangement that installed Michel Suleiman, the current president, into office as a national unity leader with no clear ties to either side. The Future Movement press office said the meeting was held in an undisclosed, secure location in the Hizbollah-controlled southern suburbs because of threats against Sheikh Nasrallah by both Israel and Sunni extremists. One Future Movement official said the meeting stressed the need to continue to implement the Qatari agreement, preventing street-level tensions from sparking violence and continuing communication between both sides.

Mustafa Aloush, a Sunni MP and a Hariri supporter, described the meeting as "aiming to support other initiatives taken a while ago", including the removal of "political posters and slogans from the streets in order to prevent tension from the streets between Lebanese people". Mr Aloush said the meeting succeeded in opening dialogue between the two bitter rivals, but he called upon Hizbollah to see itself as part of a Lebanese state and not a religious movement tied to an Iranian agenda.

"I think Hizbollah should come closer to the concept of a united Lebanese state and be under the Lebanese state and governmental institutions," he said. "The ball is in Hizbollah's field now to prove that they want to be a partner. By proving they are, then they can fix the mistakes of the past. Therefore people might be able to trust them and deal with them as an equal partner, but not a militant group."

Representatives from Hizbollah could not be reached for comment, but al Manar television station, which often speaks for the group, described the meeting in positive words and showed television footage of the two men meeting together, apparently cordially. "There was an affirmation of national unity and civil peace and the need to take all measures to prevent tension. And to reinforce dialogue and to avoid strife regardless of political differences," a statement issued by both sides said, according to Reuters.

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Starring: Mirfat Amin, Boumi Fouad and Tariq Al Ibyari

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.”

Who is Ramon Tribulietx?

Born in Spain, Tribulietx took sole charge of Auckland in 2010 and has gone on to lead the club to 14 trophies, including seven successive Oceania Champions League crowns. Has been tipped for the vacant New Zealand national team job following Anthony Hudson's resignation last month. Had previously been considered for the role. 

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