Afghan girls walk past an empty crevice where ancient Buddha statues once stood before the Taliban destroyed them.
Afghan girls walk past an empty crevice where ancient Buddha statues once stood before the Taliban destroyed them.

Scarred heartland fears future



BAMIYAN // As the Taliban edge closer to Kabul, villagers in one Afghan province are still living with the destruction caused when the militants last held power. The burnt-out shells of homes continue to scar the otherwise beautiful landscape of Bamiyan. Charred black, they are both a testament to the past and a warning for the future. "I heard the Taliban shooting and saw lots of pickup lorries, so we took all the women and children and escaped to the mountains," said Mohammad Hussein, recalling the militant's arrival at his house all those years ago. Bamiyan, in central Afghanistan, is the heartland of the country's Shiite Hazara community. The Sunni-fundamentalist Taliban movement captured the area in 1998, but fierce resistance meant they were soon driven out. Then, in 1999, they seized power again. "They killed my uncle, my sister's sons and my brother's sons," said Mr Hussein, from inside a fire-damaged part of his home. Bamiyan has become synonymous with the Taliban regime's extremism because of a single act: the blowing up of the ancient Buddhist statues that were carved into a cliff-face in the provincial capital. A decade since their initial arrival here, the human cost of Taliban rule is equally obvious, yet the idea of them returning no longer seems as far-fetched as the US-led invasion once made it appear. They already control huge swathes of territory in the country's south, east and west, effectively operating like a government in those areas. Bamiyan itself is relatively peaceful, but the unrest is closing in, and no one knows what the future holds. Mr Hussein lives in the village of Pai-Katol-Mamora, which fell to the Taliban on three different occasions during the late 1990s. With Arabs and Pakistanis in their ranks, they destroyed his home and the local mosque. "Now we are just passing our lives," he said. "We don't have money, and we can't even eat rice or meat. All we have to survive on is bread and water from the river." Throughout the Shaidan Valley, similar horror stories are told. Bodies of innocent farmers scattered the fields, mullahs were arrested and murdered, and children died in the mountains as they tried to flee the carnage. Hussein Ali, who is in his late sixties, recalled how no one was quite sure what to expect as the militants approached. "At the beginning, I heard from lots of people on the way that the Taliban were good people who do not steal," he said. "But when the Taliban arrived in Maidan Shah, slowly, slowly, we started to hear they were stealing and killing civilians." Mr Ali eventually escaped and did not return until after the 2001 war. "When we came back here there was nothing - just land and dust," he said. This year looks to be the most violent since the Taliban regime collapsed, and there is now a real sense across Afghanistan that the insurgents have gained the upper hand. Foreign soldiers are dying at record levels, with more than 100 American troops already killed in 2008 alone. A key reason for the chaos is the government's lack of support among the general population. All ethnic groups often feel sidelined and suspicion towards Hamid Karzai, the president, is widespread. Abdul Hadi Rezai, a school principal in the village of Nal-e-Shera, said leaders of the Mujahideen - warlords who resisted Soviet occupation and the Taliban - should now be used to crush the insurgency. "The people of Bamiyan believe that Karzai and the Taliban are going the same way," he said. "Karzai does not want to finish the Taliban because then he will lose his position. He wants to show the people that if he leaves, the Taliban will return." Perhaps that day will never come, but no one here seems 100 per cent certain that the bloodshed is fully behind them. In Haji Gak Shaidan, near Shaidan, some of the buildings are still charred wrecks and there is not a radio or car to be found. For the meantime at least, the residents are happy in their isolation. "We don't know anything about the Taliban now - if they are finished, if they are still fighting, if they are close to us," said Mohammed Hassan, 25. "We are living in the mountains so if we see people running away we will know the Taliban are coming." @email:csands@thenational.ae

THE 12 BREAKAWAY CLUBS

England

Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur

Italy
AC Milan, Inter Milan, Juventus

Spain
Atletico Madrid, Barcelona, Real Madrid

Keep it fun and engaging

Stuart Ritchie, director of wealth advice at AES International, says children cannot learn something overnight, so it helps to have a fun routine that keeps them engaged and interested.

“I explain to my daughter that the money I draw from an ATM or the money on my bank card doesn’t just magically appear – it’s money I have earned from my job. I show her how this works by giving her little chores around the house so she can earn pocket money,” says Mr Ritchie.

His daughter is allowed to spend half of her pocket money, while the other half goes into a bank account. When this money hits a certain milestone, Mr Ritchie rewards his daughter with a small lump sum.

He also recommends books that teach the importance of money management for children, such as The Squirrel Manifesto by Ric Edelman and Jean Edelman.

Three trading apps to try

Sharad Nair recommends three investment apps for UAE residents:

  • For beginners or people who want to start investing with limited capital, Mr Nair suggests eToro. “The low fees and low minimum balance requirements make the platform more accessible,” he says. “The user interface is straightforward to understand and operate, while its social element may help ease beginners into the idea of investing money by looking to a virtual community.”
  • If you’re an experienced investor, and have $10,000 or more to invest, consider Saxo Bank. “Saxo Bank offers a more comprehensive trading platform with advanced features and insight for more experienced users. It offers a more personalised approach to opening and operating an account on their platform,” he says.
  • Finally, StashAway could work for those who want a hands-off approach to their investing. “It removes one of the biggest challenges for novice traders: picking the securities in their portfolio,” Mr Nair says. “A goal-based approach or view towards investing can help motivate residents who may usually shy away from investment platforms.”
A MAN FROM MOTIHARI

Author: Abdullah Khan
Publisher: Penguin Random House
Pages: 304
Available: Now

Ramy: Season 3, Episode 1

Creators: Ari Katcher, Ryan Welch, Ramy Youssef
Stars: Ramy Youssef, Amr Waked, Mohammed Amer
Rating: 4/5

Company Profile

Company name: myZoi
Started: 2021
Founders: Syed Ali, Christian Buchholz, Shanawaz Rouf, Arsalan Siddiqui, Nabid Hassan
Based: UAE
Number of staff: 37
Investment: Initial undisclosed funding from SC Ventures; second round of funding totalling $14 million from a consortium of SBI, a Japanese VC firm, and SC Venture

Wallabies

Updated team: 15-Israel Folau, 14-Dane Haylett-Petty, 13-Reece Hodge, 12-Matt Toomua, 11-Marika Koroibete, 10-Kurtley Beale, 9-Will Genia, 8-Pete Samu, 7-Michael Hooper (captain), 6-Lukhan Tui, 5-Adam Coleman, 4-Rory Arnold, 3-Allan Alaalatoa, 2-Tatafu Polota-Nau, 1-Scott Sio.

Replacements: 16-Folau Faingaa, 17-Tom Robertson, 18-Taniela Tupou, 19-Izack Rodda, 20-Ned Hanigan, 21-Joe Powell, 22-Bernard Foley, 23-Jack Maddocks.

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.”

Key changes

Commission caps

For life insurance products with a savings component, Peter Hodgins of Clyde & Co said different caps apply to the saving and protection elements:

• For the saving component, a cap of 4.5 per cent of the annualised premium per year (which may not exceed 90 per cent of the annualised premium over the policy term). 

• On the protection component, there is a cap  of 10 per cent of the annualised premium per year (which may not exceed 160 per cent of the annualised premium over the policy term).

• Indemnity commission, the amount of commission that can be advanced to a product salesperson, can be 50 per cent of the annualised premium for the first year or 50 per cent of the total commissions on the policy calculated. 

• The remaining commission after deduction of the indemnity commission is paid equally over the premium payment term.

• For pure protection products, which only offer a life insurance component, the maximum commission will be 10 per cent of the annualised premium multiplied by the length of the policy in years.

Disclosure

Customers must now be provided with a full illustration of the product they are buying to ensure they understand the potential returns on savings products as well as the effects of any charges. There is also a “free-look” period of 30 days, where insurers must provide a full refund if the buyer wishes to cancel the policy.

“The illustration should provide for at least two scenarios to illustrate the performance of the product,” said Mr Hodgins. “All illustrations are required to be signed by the customer.”

Another illustration must outline surrender charges to ensure they understand the costs of exiting a fixed-term product early.

Illustrations must also be kept updatedand insurers must provide information on the top five investment funds available annually, including at least five years' performance data.

“This may be segregated based on the risk appetite of the customer (in which case, the top five funds for each segment must be provided),” said Mr Hodgins.

Product providers must also disclose the ratio of protection benefit to savings benefits. If a protection benefit ratio is less than 10 per cent "the product must carry a warning stating that it has limited or no protection benefit" Mr Hodgins added.

COMPANY PROFILE

Company: Eco Way
Started: December 2023
Founder: Ivan Kroshnyi
Based: Dubai, UAE
Industry: Electric vehicles
Investors: Bootstrapped with undisclosed funding. Looking to raise funds from outside