Syria says it will pull out troops next week


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NEW YORK and ISTANBUL // Syria promised yesterday to pull its troops off the streets by next Tuesday and rebel forces are expected to follow within 48 hours.

The United States ambassador to the United Nations, Susan Rice, said Damascus had agreed to an immediate withdrawal of troops before the April 10 deadline, but "the proof is in the acting".

"Some members of the Security Council expressed concern that the government of Syria not use the next days to intensify the violence and expressed some scepticism about the bona fides of the government," Ms Rice said.

The regime of President Bashar Al Assad has reneged on earlier pledges to end the violence that has killed more than 9,000 civilians and 3,000 government forces in a year-long uprising.

Ms Rice said opposition forces had been asked to pull back 48 hours after the government forces, but did not say if the Free Syrian Army (FSA) had agreed.

UN Security Council delegates received a briefing from Kofi Annan, the joint UN-Arab League envoy, by video link from Geneva, in which he told them time was running out for Syria to implement his six-point plan that it agreed to last week.

Unlike the Arab League's initial peace plan agreed to by Damascus, Mr Annan's proposals do not call for Mr Al Assad to step down as president.

"We are committed to implementing the six-point plan," said Bashar Jaafari, the Syrian representative at the UN.

Syrian forces have routed rebels from several towns and cities over the past few weeks and it remained unclear whether the rebels would take advantage of the 48-hour window to regain lost territory, jeopardising the deal.

A UN peacekeeping team will join Mr Annan's staff in Syria this week to prepare for a monitoring mission that would police a ceasefire. The team is expected to consist of about 250 unarmed observers pulled from neighbouring peacekeeping missions.

The British-based Syrian Observatory for Human Rights said 10 civilians were killed yesterday in the province of Homs.

"Today doesn't feel much different from yesterday or the day before, or the day before that," opposition activist Waleed Fares said from inside Homs. "Shelling and killing."

In Syria's largest city, Aleppo, a bomb blast at a kiosk killed the owner, an Al Assad supporter. At least five people were killed and eight wounded in army bombardments of villages in northern Idlib province, which borders Turkey.

Some countries, including Saudi Arabia and Qatar, are calling openly for the rebels to be given weapons. Mehmet Sahin, a political scientist at Ankara's Gazi University, said the promise by Arab states to pay the wages of rebel soldiers, made at the Friends of Syria meeting in Istanbul on Sunday, showed countries in the region did not expect the conflict to be solved overnight.

"The experience of other Arab Spring countries has shown that governments lost their power when the army changed sides," he said. The promised payments had the aim of "strengthening the process of erosion" within the Syrian regime.

Cenap Cakmak, head of the department of international relations at the Osmangazi University in Eskisehir in western Turkey, said the Istanbul conference had weakened the Annan plan because a group of countries showed their willingness to step up support for the Syrian opposition.

He said a proxy war between forces supported by Iran and troops supported by Sunni Arab states was possible.

"Without decisive action by the UN Security Council to stop the Assad regime a civil war in Syria is becoming unavoidable," Mr Cakmak said.

Even if Syria's main ally Russia - which opposes a deadline for troop withdrawal - could be convinced to back tougher measures against Damascus, Mr Al Assad was not likely to change his ways.

"He knows that he will be put before an international court for war crimes if he loses power. For him, there is no way back."

Mr Annan's plan includes a ceasefire and unhindered delivery of humanitarian aid.

Some areas that have seen the worst fighting are desperately short of food, water, medicine and other essentials, activists say.

Celalettin Yavuz, deputy director of the Turkish Centre for International Relations and Strategic Analysis, a think tank in Ankara, said the threat of a civil war in Syria was real.

"I hope everyone wakes up to that fact," he said. The offer of arms to the opposition was "very wrong".

Turkey's opposition criticised the Ankara government for burning all bridges with the Syrian regime while the outcome of the crisis was far from clear.

"We have a saying: Don't jump into muddy water, and if you do, jump in with your feet first," said Umut Oran of the opposition Republican People's Party (CHP).

"On the Syrian issue, the prime minister took a header into muddy water."

* Additional reporting by Reuters

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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.”

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

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