Yemeni security forces inspect vehicles at a checkpoint in Mukalla on July 19, 2016, weeks after driving Al Qaeda from the southern port city as part of a continuing operation by the Saudi-led coalition and Yemeni forces against the extremist group. Abduljabbar Bajubair / AFP
Yemeni security forces inspect vehicles at a checkpoint in Mukalla on July 19, 2016, weeks after driving Al Qaeda from the southern port city as part of a continuing operation by the Saudi-led coalitiShow more

Yemeni, UAE and US forces drive Al Qaeda from Shabwa stronghold



Elite Yemeni forces backed by the UAE army and US military drove Al Qaeda militants from a stronghold in southern Yemen on Thursday.

The morning raid in Shabwa province dealt a huge blow to the extremists in the region, a UAE military official told the state news agency Wam.

The Yemeni forces were comprised of fighters from tribal families in Shabwa, who were trained by Emirati forces. They were joined by Yemeni fighters from Hadramawt province.

The Al Qaeda militants, who had managed to establish a presence in the area, suffered heavy casualties, Wam said. The report added the Yemeni forces were received jubilantly by the villagers, who had been forced to live under Al Qaeda’s oppressive rule.

While no death toll was available, Wam said those militants who were not killed in the operation, fled the area.

Extremist groups like Al Qaeda in the Arabian Peninsula and ISIL have attempted to take advantage of Yemen’s civil war by attacking Yemeni security forces and civilians and building strongholds in the south.

But the Arab coalition supporting the Yemeni government against Houthi rebels, has increasingly turned its attention to eliminating the extremist groups. Donald Trump has also increased US involvement in the battle against Al Qaeda’s Yemen branch.  US special forces carried out a raid in Al Bayda province in January.

Yemeni forces supported by the UAE drove Al Qaeda from the city of Mukalla in April 2016 after the extremists had captured the city a year earlier.

The victory in Shabwa took place two weeks after Yemeni counter-terrorism troops arrested three Al Qaeda militants during an operation in Hadramawt.

Since a spate of attacks in 2015, the Yemeni forces have been able to secure cities and towns in the south and made progress in providing security in surrounding regions.

Thursday’s raid came as the UN’s special envoy to Yemen held meetings in Muscat in an attempt to resume peace talks between the Yemeni government and Houthi rebels, who have been at war for more than two years.

Fighting has recently intensified with clashes near Mokha on Yemen’s Red Sea coast killing more than 40 troops and rebels at the beginning of this week

The UN has described Yemen as the “largest humanitarian crisis in the world”, warning that 80 per cent of country’s children need aid. Some 400,000 Yemenis have contracted cholera in an outbreak that has killed 2,000 people.

ABU DHABI ORDER OF PLAY

Starting at 10am:

Daria Kasatkina v Qiang Wang

Veronika Kudermetova v Annet Kontaveit (10)

Maria Sakkari (9) v Anastasia Potapova

Anastasia Pavlyuchenkova v Ons Jabeur (15)

Donna Vekic (16) v Bernarda Pera 

Ekaterina Alexandrova v Zarina Diyas

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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