ISLAMABAD // The chief of the Pakistani Taliban was killed by a US drone strike yesterday, security sources and a senior Taliban commander said, dealing a major blow to the country’s most feared militant group.
Hakimullah Mehsud was one of Pakistan’s most wanted men with a US bounty of $5 million (Dh18.36m) on his head. He led an increasingly violent insurgency from a secret hideout in North Waziristan, the Taliban’s mountainous stronghold on the Afghan border.
“We confirm with great sorrow that our esteemed leader was martyred in a drone attack,” a senior Taliban commander said.
Mehsud’s funeral will be held today in Miranshah, the Taliban commander said – a high-profile event likely to stir tensions further in the already highly volatile region.
The death of a man whose name became synonymous with the country’s escalating insurgency is the latest in a series of setbacks for the Pakistani Taliban.
In May, a drone strike killed Mehsud’s second-in-command, and one of his most trusted lieutenants was captured in Afghanistan last month.
The death also follows months of debate over potential peace talks between the Taliban and the new government of Prime Minister Nawaz Sharif, who won a landslide election victory in May, promising to quash the insurgency.
Several intelligence, army and Taliban sources across Pakistan confirmed that Mehsud, believed to be in his mid-30s, had been killed in the drone strike in North Waziristan.
Mehsud took over the Pakistani Taliban in August 2009 after a drone strike killed the previous leader, his mentor. His Pakistani Taliban acts as an umbrella for various jihadist groups who are separate to but allied to the Afghan Taliban.
Four security officials who confirmed his death said his bodyguard and driver were also killed.
“Among the dead, who are in large numbers, are Hakimullah’s personal bodyguard Tariq Mehsud and his driver Abdullah Mehsud, two of his closest people,” said one intelligence source.
The government issued its usual statement denouncing the drone strike but did not comment on reports of Mehsud’s death.
Drones fired four missiles at a compound in Danda Darpa Khel, a village about 5 kilometres from the regional capital of Miranshah, killing at least four people, sources said.
Mehsud was killed after attending a gathering of 25 Taliban leaders gathering to discuss the government’s offer of talks, they said.
The information could not be independently verified because journalists have no access to the affected areas.
The US had offered $5m for Mehsud’s capture after he appeared in a farewell video with the Jordanian suicide bomber who killed seven CIA employees at a base in Afghanistan in 2009.
US prosecutors have charged him with involvement in the attack.
* Reuters
All you need to know about Formula E in Saudi Arabia
What The Saudia Ad Diriyah E-Prix
When Saturday
Where Diriyah in Saudi Arabia
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Who is competing There are 22 drivers, from 11 teams, on the grid, with each vehicle run solely on electronic power.
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Engine: 3.8-litre twin-turbo V8
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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.”