The streets of Amman, Jordan. The worst storms in a decade have left swathes of Israel and Jordan under a blanket of snow and parts of Lebanon blacked out.
The streets of Amman, Jordan. The worst storms in a decade have left swathes of Israel and Jordan under a blanket of snow and parts of Lebanon blacked out.
The streets of Amman, Jordan. The worst storms in a decade have left swathes of Israel and Jordan under a blanket of snow and parts of Lebanon blacked out.
The streets of Amman, Jordan. The worst storms in a decade have left swathes of Israel and Jordan under a blanket of snow and parts of Lebanon blacked out.

Severe storms paralyse Middle East


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BEIRUT // The worst storms in a decade left swathes of the Palestinian territories and Jordan under a blanket of snow and parts of Lebanon blacked out yesterday, bringing misery to a region accustomed to warmer temperatures.

Freezing temperatures and floods across the region have claimed at least 11 lives since Sunday and exacerbated the plight of hundreds of thousands of Syrian refugees huddled in tented camps in Jordan, Turkey and Lebanon.

One expert at Beirut's airport said that this weather system, which originated in Russia, was the worst ever to have hit Lebanon.

The United Nations yesterday appealed for urgent aid to help Syrians in the Zaatari refugee camp.

"The next 72 hours will be a critical test of our ability to meet the basic needs of children and their families at Zaatari" refugee camp in the desert near the Syrian border, said Unicef's Jordan representative, Dominique Hyde.

The camp, home to more than 62,000 Syrian refugees, was almost entirely inundated by water on Wednesday. Heavy wind and rains knocked down at least 500 tents, which normally house five people.

In Jerusalem at least 15 to 20 centimetres of snow had fallen by yesterday morning.

During the height of the snowfall, buses were cancelled, but services gradually resumed as the storm tapered off and the sun returned.

City officials asked residents to avoid driving and to use public transport. Across the holy city, which lies at an altitude of 800 metres, schools were closed for the day, with thousands of children - and no shortage of adults - taking to the streets to play in the snow.

"Look at our snowman," Manar Barhoum shouted in the east Jerusalem neighbourhood of Beit Safafa, pointing at a 1.2-metre effort, complete with a carrot nose and eyes made of cucumber slices.

"It's a salad snowman," her mother Miriam said.

In the northern West Bank village of Qusra, 48-year-old Abdelhamid Qusrawi, said: "In 1991 we had more snow, but in the past 10 years, this is the most that we've seen."

Authorities ordered schools and universities to shut across the region, including in Lebanon, Jordan and Syria.

In Jordan, a blizzard brought the country to a near halt, as snow blocked most of roads in Amman and other parts in the desert kingdom, police said.

Jordan's King Abdullah II ordered the army to support the government, which declared yesterday a public holiday, in opening roads and helping those stranded in the snow, the palace said.

The storm has also triggered blackouts in Lebanon and Jordan.

"Our boiler works with electricity, so of course we have no hot water," said Elsa, a housekeeper living in Beirut, adding that her family has been struggling to find ways to keep warm.

At least 11 people have reportedly been killed in the region, including a man who froze to death after he fell asleep drunk in his car in Lebanon's eastern Bekaa Valley and a baby swept away in a flash flood in the centre of the country.

In the Palestinian territories, officials reported five fatalities since Tuesday, one of them a woman in the southern West Bank village of Jabaa who died from a fire she started in her home to keep warm.

A Gaza official also said a Palestinian man was electrocuted after being struck by a power cable snapped loose by ferocious winds.

Shraf Al Kidra said that the 24-year-old died on Wednesday in the accident, which injured four other people.

The storm also took a heavy toll on regional economies.

Three days of rain and strong winds that struck Egypt hit activity, including in most ports, with the commercial harbour in Alexandria on the Mediterranean Sea worst affected, officials said.

Snow was even seen capping the north-west Tabuk region of Saudi Arabia, where roads leading to Mount Alluz were packed with motorists excited at the sight of snow.

The severe weather extended beyond the Middle East. The Turkish government issued warnings about natural gas leaks as people try to heat their homes. Gas leaks have killed eight people in the country this past week.

* With additional reporting by the Associated Press and Reuters

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.”