People walk in a market street in Yemen's southwestern city of Taez on November 13, 2018. The United Nations' aid chief called for a ceasefire around Yemen's city of Hodeida, where pro-government forces are battling Huthi rebels for control of the Red Sea port. / AFP / Ahmad AL-BASHA
People walk in a market street in Yemen's southwestern city of Taez on November 13, 2018. AFP

UAE, Saudi, UK and US establish committee to address Yemen war



The UAE, Saudi, US and UK established on Thursday a committee to address Yemen’s economic and humanitarian crisis.

Senior officials and ambassadors of the quartet states met in Riyadh to identify measures aimed at stabilizing Yemen’s economy by calling on the international community to support the ongoing peace process.

“The four nations agreed to establish an advisory committee that will meet once a month to establish measures aimed at stabilizing Yemen’s currency, management of foreign currency flows and support the government of Yemen in improving its economic management,” according to a statement by the Saudi Press Agency.

They expressed support for UN Envoy to Yemen Martin Griffiths’ efforts in bringing all sides of the conflict to the negotiating table in order to work on a political solution.

Mr Griffiths is expected to give a briefing on Friday to the UN Security Council on the progress of the upcoming peace talks next month.

Saudi Arabia's foreign minister, Adel Al Jubeir, said on Thursday that the kingdom supports UN-led peace efforts to end the war in Yemen.

"We support a peaceful solution in Yemen and we support the efforts of the UN  special envoy to Yemen," Mr Al Jubeir told reporters. "We are committed to delivering all the necessary humanitarian aid to our brothers in Yemen."

The development comes as Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, held talks with Yemen’s Al Islah party.

During the meeting on Wednesday evening, Sheikh Mohammed reviewed the latest developments in Yemen with Al Islah chairman Colonel Mohammed Abdullah Al Yidoumi and secretary-general Abdulwahab Ahmad Al Anisi, according to state news agency WAM.

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Al Islah leaders expressed their gratitude to the UAE and the Arab led coalition for their efforts against the Iranian-backed Houthi rebels in Yemen, according to WAM.

“The meeting is seen as a positive and important step towards strengthening and uniting the Arab coalition in achieving its objectives of assisting pro-government forces to retake much of the rebel-held areas,” Adnan Al Adaini, deputy head of the information department of the Islah Party said.

Mr Al Adaini accused Qatar of playing a role in undermining security in Yemen and the Arab region.

Al Islah has been fighting alongside forces loyal to Yemeni president Abdrabu Mansur Hadi in Marib province, east of Sanaa, for three years.

Mr Hadi on Wednesday backed UN-proposed talks to end fighting in his war-torn country but vowed to "liberate" the battleground rebel-held port city of Hodeidah regardless of the peace process.

His aide Abdullah Al Alimi said the president had given strict instructions to army commanders to avoid civilian casualties, while also pushing for peace negotiations.

President Hadi, said Mr Al Alimi, has continuously pushed for the interest of the country to be taken into consideration.

On Thursday in Hodeidah an uneasy calm had settled for the third consecutive day after nearly two weeks of intense fighting between Iran-backed Hputhi rebels and the Arab coalition.

A resident of Hodeidah told The National that the Iran-backed rebels had deployed tens of children to replace deserters and fighters taken prisoners by the coalition.

Anas Balgheith, a displaced Hodeidah resident in Al Khoukhah told The National that tens of new Houthi fighters had been deployed to the city centre on a daily basis.

"As soon as they arrive they take up positions on the buildings' rooftops and start digging new trenches and build barricades and plant mines," Mr Balgheith said. "More than 300,000 civilians are still living in the city, they are living in a catastrophic situation, they can't flee the city because the Houthis used to fire randomly over the families who tried to flee so the majority prefer to stay home.

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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.”

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