Smoke rises after an air strike during fighting between members of the US-backed Syrian Democratic Forces and ISIL in Raqqa, Syria on August 20, 2017. Zohra Bensemra / Reuters
Smoke rises after an air strike during fighting between members of the US-backed Syrian Democratic Forces and ISIL in Raqqa, Syria on August 20, 2017. Zohra Bensemra / Reuters
Smoke rises after an air strike during fighting between members of the US-backed Syrian Democratic Forces and ISIL in Raqqa, Syria on August 20, 2017. Zohra Bensemra / Reuters
Smoke rises after an air strike during fighting between members of the US-backed Syrian Democratic Forces and ISIL in Raqqa, Syria on August 20, 2017. Zohra Bensemra / Reuters

US-led coalition strikes kill more than 40 civilians in Raqqa


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US airstrikes on the Syrian city Raqqa killed at least 42 civilians on Sunday and Monday, according to monitoring groups following the coalition’s offensive against ISIL.

The Syrian Observatory for Human Rights said Sunday’s strikes brought the number of civilians killed by the US-led coalition since August 14 to at least 167, including 59 children.

The group Raqqa is Being Slaughtered Silently said Sunday’s airstrikes hit an apartment building in the city’s Al Bedoo neighbourhood and that the toll in that single strike alone was as high as 40 deaths, with bodies remaining under the rubble.

The US-led coalition reported that on Sunday the coalition carried out 21 strikes “near Raqqa” that resulted in the destruction of 22 ISIL “fighting positions” and said that the claims civilians were killed would be investigated.

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“The Coalition takes all allegations of civilian casualties seriously and assesses all credible allegations of possible civilian casualties.  However, the recent allegations by the Syrian Observatory for Human Rights lack specificity and detail making it very difficult to properly assess,” a spokesperson for US Central Command said on Tuesday.

Civilian casualties have also been an issue for the US-led coalition in Iraq. The monitoring group Airwars said it had received claims that as many as 8,600 civilians had been killed Mosul since the campaign to drive ISIL from that city began nearly a year ago. The group says it has already confirmed at least 1,000 civilian deaths in Mosul as a result of the US-led coalition’s bombing, and in recent months there has been a 400 per cent increase in claims of civilian casualties in the fight against ISIL that began in 2014.

“It starts in Mach of 2017 – civilian casualty numbers have more than doubled under Trump,” said Chris Woods, the lead researcher at Airwars. “There are several reasons for that – the stage of the war that we’re in, and that Raqqa and Mosul were going on simultaneously.”

“We also feel like something else is going on – the protections for civilians on the battlefield have been loosened by the US,” Mr Woods said. “We are starting to see a number of mass casualty events reported out of Raqqa.”

In the most recent monthly civilian casualty report released by US Central Command on August 4, the military admitted to 624 “likely” civilian casualties since the beginning of Operation Inherent Resolve more than three years ago. Inherent resolve is the name the US military has given to the ongoing operation against ISIL in Iraq and Syria.

A spokesman for the Syrian Democratic Forces, a US-backed militia that began fighting inside the city of Raqqa in June with the support of US airstrikes and artillery, could not be reached for comment.

The United Nations estimates that somewhere between 10,000 and 25,000 civilians remain trapped in Raqqa in increasingly desperate conditions.

Amnesty International plans to release a report on Thursday detailing the dangers faced by civilians as the fighting has intensified and documenting hundreds of civilian casualties.

“Things will only get more dangerous as the battle reaches its final stages in the city centre,” said Donatella Rivera, Senior Crisis Response Adviser at Amnesty International, who led the on-the-ground investigation.  “More can and must be done to preserve the lives of civilians trapped in the conflict and to facilitate their safe passage away from the battleground.”

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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