An anti-regime protester hangs an effigy of the Yemeni president, Ali Abdullah Saleh, from a lamppost at a rally in Sana'a yesterday, where thousands converged after Friday prayers to demand his removal.
An anti-regime protester hangs an effigy of the Yemeni president, Ali Abdullah Saleh, from a lamppost at a rally in Sana'a yesterday, where thousands converged after Friday prayers to demand his removal.
An anti-regime protester hangs an effigy of the Yemeni president, Ali Abdullah Saleh, from a lamppost at a rally in Sana'a yesterday, where thousands converged after Friday prayers to demand his removal.
An anti-regime protester hangs an effigy of the Yemeni president, Ali Abdullah Saleh, from a lamppost at a rally in Sana'a yesterday, where thousands converged after Friday prayers to demand his remov

Saleh defiant in face of mass rallies


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SANA'A // President Ali Abdullah Saleh stood defiant among thousands of his supporters yesterday as demonstrations continued across Yemen demanding his removal.

Ahead of the usual mass Friday gatherings from both sides, Yemen's tribal and religious leaders issued a statement urging security forces to defect and calling for the president to go.

But Mr Saleh, who has been in power for 33 years, used a speech near the presidential palace to call on the opposition to return to talks.

"We call on the opposition to consult their consciences and come to dialogue and reach an agreement for security and stability of the country," Mr Saleh said on the so-called "Friday of Dialogue".

"These popular masses - these millions - massed in this square have come to say 'yes' to constitutional legitimacy," he said.

"These are the same masses who said 'yes' to Ali Abdullah Saleh in 2006 [elections] as president of the republic."

He said the crowds carrying his picture and calling for him to stay were "a clear message to the people inside and outside the country.".

His speech came as GCC mediators offered Mr Saleh and the opposition an end to the crisis in Yemen, in which more than 125 protesters have been killed since February 11. The GCC proposal calls for Mr Saleh to transfer power to his deputy and for the creation of an opposition-led national unity government.

"This is a referendum on my constitutional legitimacy," said Mr Saleh, 69, whose party has said he should stay in power until his seven-year term runs out in 2013.

Meanwhile, hundreds of thousands of people protested against Mr Saleh across the country - including in Sana'a, Taiz, Hudaida and Ibb in what they dubbed a "Friday of Determination". Eight people were wounded in Taiz, which was the scene of the biggest anti-Saleh protests yesterday.

According to witnesses, Saleh supporters fired on protesters who came from outside the city to join the demonstrations at Freedom Square. Tens of thousands have camped out for more than two months at the square.

After the shooting, pro-democracy protesters hurled stones and shoes at the convoy of Rashad al Alimi, the deputy prime minister who was organising a pro-Saleh demonstration, according to witnesses.

In the capital, hundreds of thousands rallied at al Tagheer square in front of Sana'a University to demand his immediate removal. The protesters chanted: "Leave. No solution but your departure."

The two rival rallies in Sana'a went without any reported clashes.

Late on Thursday, Yemen's tribal and religious leaders issued a statement after a meeting calling on the security forces to defect to the protesters and called for the "quick" removal of Mr Saleh.

The president "must respond to the demands of the peaceful revolt of the youth, starting with his immediate departure and that of all his aides in the military and security apparatuses," the statement said.

The meeting was led by the chief of the Hashed tribe, the same tribe as Mr Saleh's family. It included most members of the Ulema Council of Islamic leaders in Yemen.

Unless the president stepped down "quickly", the participants would "head up the demonstrations and sit-ins in all the provinces", the leaders said.

They refused to accept any GCC mediation plan unless it clearly states when Mr Saleh must step down, and rejected a GCC proposal to give immunity to Mr Saleh and his family members.

The tribal chiefs and clerics condemned the misuse of public money on pro-Saleh protests, and denounced the distribution of weapons in cities and neighbourhoods to government supporters.

They also condemned the formation of armed militias, calling for Yemen's tribes to take an oath promising not to be dragged into violence each other.

The statement also promised that the new government would prioritise security measures to combat terrorism.

"The peaceful change revolution in Yemen will be a safety valve for the security at the local, regional and international levels and it will work with the international community to dry up the sources of terrorism wherever they exist."

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.”