TUNIS // Tunisia's military chief has resigned as the armed forces struggle to contain a growing terrorist threat in the country.
General Rachid Ammar made the announcement on a private Tunisian television channel, citing the fact that he was, at 67, seven years over the military retirement age.
Admired for his role during the uprising that overthrew Zine El Abidine Ben Ali, Gen Ammar has presided over a troubled time for the Tunisian army.
After the uprisings in Tunisia and in neighbouring Libya, where an internationally backed rebellion felled Muammar Qaddafi, growing regional security problems have forced the army to assume a more prominent role.
Security sources say that every month dozens of arms shipments pass along smuggling routes through the desert in southern Tunisia between extremist groups based in Libya and neighbouring Algeria. A Tunisian-Algerian extremist group based near the town of Kasserine laid dozens of landmines, which have killed at least two soldiers this year.
Gen Ammar defended his handling of the extremists, who were hiding around Mount Chaambi in south-west Tunisia, on the border with Algeria, and blamed "failure in the chain of intelligence" for difficulties in tracking them down.
"Tunisia is targeted by Al Qaeda," he said, adding that the militants had financing and weapons.
"Tunisia could see the same fate as Somalia" if the extremists are not rooted out, he said.
In January 2011, the general reportedly refused orders to fire on protesters calling for Ben Ali to step down, and was subsequently hailed as a hero after the departure of the president.
Later that month, he addressed a cheering crowd of demonstrators, assuring them that the army would be the guarantor of the constitution and of the "revolution", according to Tunisian media.
But he warned the people gathered outside the government buildings even then: "Your demands are legitimate, but I would like this place to be empty, so that the government works … vacuum creates terror, which generates dictatorship."
Under Ben Ali, and his predecessor Habib Bourguiba, the Tunisian army held far less political power or military capacity than virtually any other in the militarised Arab world. Bourguiba sought to emulate the French civil state and also, say academics, aimed to limit the risk of a military coup by weakening his army.
Gen Ammar has been criticised by some politicians for failing to prevent instances of terrorism. However, said Derek Lutterbeck of the University of Malta, who has written on security sector reform in Tunisia, the army he headed suffers from historical weakness in the face of growing threats.
"What I am hearing is that their equipment is out of date, and they are underequipped," he said.
"And when it comes to terrorism, it is a matter of expertise. In Algeria, they have had to deal with this for 20 years, but in Tunisia, it's a new phenomenon. It's the novelty of this challenge. They seem to be struggling with it."
There have also been moments of tension between the dominant Ennahda party and the military. Party leader Rachid Ghannouchi was secretly filmed last year saying that the army was in the hands of secularists, and "cannot be guaranteed".
afordham@thenational.ae
* With additional reporting by Associated Press
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Married Malala
Malala Yousafzai is enjoying married life, her father said.
The 24-year-old married Pakistan cricket executive Asser Malik last year in a small ceremony in the UK.
Ziauddin Yousafzai told The National his daughter was ‘very happy’ with her husband.
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The flights
Etihad and Emirates fly direct from the UAE to Chicago from Dh5,215 return including taxes.
The hotels
Recommended hotels include the Intercontinental Chicago Magnificent Mile, located in an iconic skyscraper complete with a 1929 Olympic-size swimming pool from US$299 (Dh1,100) per night including taxes, and the Omni Chicago Hotel, an excellent value downtown address with elegant art deco furnishings and an excellent in-house restaurant. Rooms from US$239 (Dh877) per night including taxes.
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Heavily-sugared soft drinks slip through the tax net
Some popular drinks with high levels of sugar and caffeine have slipped through the fizz drink tax loophole, as they are not carbonated or classed as an energy drink.
Arizona Iced Tea with lemon is one of those beverages, with one 240 millilitre serving offering up 23 grams of sugar - about six teaspoons.
A 680ml can of Arizona Iced Tea costs just Dh6.
Most sports drinks sold in supermarkets were found to contain, on average, five teaspoons of sugar in a 500ml bottle.
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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.
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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.”
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