epa06363092 Houthi fighters man a checkpoint amid clashes between the Houthis and forces loyal to former Yemeni president Ali Abdullah Saleh, in Sanaa, Yemen, 02 December 2017. According to reports, at least 40 people died, including civilians, and dozens were wounded in the last few hours in Sanaa in the fighting between Houthi rebels and their allies, the forces loyal to former Yemeni president Ali Abdullah Saleh.  EPA/YAHYA ARHAB
Houthi fighters man a checkpoint in the Yemeni capital Sanaa. Mohammed Al Kairaee was a member of the rebels' Supreme Revolutionary Committee. EPA

Senior Houthi official defects and flees to Aden




A member of Yemen's rebel-controlled Supreme Revolutionary Committee has defected and fled to the liberated city of Aden, senior government sources told The National.

A source confirmed the defection late on Wednesday night and said Mohammed Al Kairaee had fled Sanaa for his home town of Taez before making his way to Aden.

Mr Al Kairaee had served as a member of the steering committee of the General People's Congress (GPC), a Yemeni political party founded by former president Ali Abdullah Saleh. He was appointed to the Supreme Revolutionary Committee after the Houthi rebels seized much of the country in 2014.

Mr Al Kairaee fled because the Houthi rebels had placed him and several members of the GPC under house arrest.

His defection comes just days after outrage spread in rebel-held areas because the Revolutionary Committee ordered local commanders to round up black Yemenis of the Al Akhdam caste to fill a new front-line battalion.

Yemeni Al Akhdam, literally meaning servant, are the bottom of the country’s supposedly abolished social caste system. They have faced racism and marginalisation for years and most live in slums around urban centres where they were confined to menial and labouring jobs even before the war.

Mr Al Kairaee heads the Organisation of Black Liberal Defence in Yemen, a body that champions rights for the country’s estimated 1 million Al Akhdam. As such, he is seen as a community leader and has represented Al Akhdam in politics since before the war.

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The Houthi drive to recruit Al Akhdam comes with the rebels under increasing international pressure to hold up their end of agreements reached at UN-brokered talks in Sweden last month, including a ceasefire in the port city of Hodeidah and a prisoner exchange.

Government and rebel representatives on Thursday chalked out the next steps in the prisoner swap after two days of talks in the Jordanian capital Amman. The government side led by Hadi Haig and the rebel delegation led by Abdel Qader Al Murtada submitted their final lists of prisoners that they want released.

Yemen's Deputy Minister of Human Rights, Majed Al Fadhil, said both sides agreed to submit their feedback on the meetings within three days.
"During the next few days we will respond to the Houthis' request on the names that they have presented," Mr Fadhil told The National.

Over the next 7-10 days, both sides expect to sign a final agreement to implement the operation, said Mr Fadhil, who is also a member of the government's prisoner committee.

The talks were attended by the International Committee of the Red Cross, which will oversee the exchange of prisoners. The prisoners are to be flown out of two airports: Seyoun in central Yemen and rebel-held Sanaa.

Yemen’s Foreign Minister, Khaled Al Yamani, accused the Houthis of refusing to co-operate after the first day of talks in Amman.

Mr Al Yamani said the rebels had refused to provide the government with details of 232 detainees, including high-profile prisoners such as former defence minister Gen Mahmood Al Soubaihi, Maj Gen Naser Mansour Hadi, who is the brother of President Abdrabu Mansur Hadi, and Mohammed Qahtan, the leader of Yemen's Islamist Al Islah party. They have been detained since 2015.

Mr Al Yamani said the international community had to accept that the rebels do not want peace.

"The Houthis are evasive, they are bargaining on this issue and are extorting the international community in various forms,” he said.

The prisoner swap, which involves nearly 15,000 detainees from both sides, is part of a series confidence-building measures to lay the groundwork for peace negotiations.

During the last month, details of the prisoner agreement were sidelined as UN mediators focused on implementing a truce deal for Hodeidah, the entry point for most of Yemen's food and aid, and the battleground city of Taez.

The UN Security Council on Wednesday approved the deployment of up to 75 monitors to oversee the ceasefire in Hodeidah.

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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.”