Terror alert: US, UK airports ramp up security amid ‘stealth’ bomb fears


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LONDON // Airports across the United States and United Kingdom are on high alert.

Security has been stepped up amid fears that Islamist groups are developing a new generation of hard-to-detect “stealth” bombs that could evade existing scans and slip onto planes undetected.

Airports in the Middle East, Africa and Europe that have direct flights to the US have been asked to implement enhanced security checks in the coming days, US homeland security secretary Jeh Johnson said in a statement on Tuesday. He did not cite evidence of any specific plot.

Britain confirmed it was bolstering security at its airports in response.

Travellers will probably have to endure “another layer” of security for some time, Deputy Prime Minister Nick Clegg said on London’s LBC Radio, adding: “I don’t think we should expect this to be a one off temporary thing.”

Belgian’s interior minister Joelle Milquet, whose country is also stepping up airport security, told RTL-TVI the measures would focus on electronic equipment such as tablets, computers and mobile phones “to make sure there are no explosives”.

The new checks focusing on electronic items fuel fears that extremists such as Al Qaeda could use them as their latest tactic in a long campaign of attacks involving aircraft.

There is heightened scrutiny as the spiralling conflict in the Middle East prompts an increased flow of western jihadists, fanning fears that hundreds of Islamist radicals travelling from Europe to fight in the Middle East could pose a security risk on their return.

On Sunday, US President Barack Obama warned that “battle-hardened” Europeans who embrace jihad in Syria and Iraq threaten the United States because their passports mean they can enter without a visa.

The airports concerned are located in the Middle East and Europe and were targeted “based on real-time intelligence”, according to an official at the US Department of Homeland Security who spoke on condition of anonymity.

Analysts said the move was likely linked to concerns that Al Qaeda in the Arabian Peninsula (AQAP) was passing on bombmaking expertise to militants fighting in Syria.

The fear is that militants with European passports could then bring these skills back home with them and launch an attack, experts say.

Brooke Rogers of the War Studies Department at King’s College London said that for extremist groups, bringing down an aircraft was the “ultimate prize – if the attackers succeed, it will be spectacular for them”.

The terror alert in Uganda further rattled nerves but it was not immediately clear if it was linked to the airport security boost.

Although the US embassy did not name any group, Al Qaeda linked Shebab insurgents have claimed attacks in neighbouring Kenya, including the Westgate mall bloodbath, and Djibouti, as well as at home in Somalia.

Despite the increased checks, Britain said the international terror threat level issued by security service MI5 remained unchanged at substantial, the third highest grade out of five, where it has been since July 2011.

Prime Minister David Cameron said Britain was taking a “safety first” approach.

“This is something we’ve discussed with the Americans and what we have done is put in place some extra precautions and extra checks,” he said.

“The safety of the travelling public must come first – we mustn’t take any risks.”

His Downing Street office said there was an “evolving threat” but did not give further details.

The measures threaten disruptions for passengers at the start of the summer holiday season.

But officials insist passengers should not face significant delays and London’s Heathrow airport – one of the world’s busiest international air hubs – and Gatwick, south of the capital, were both operating normally on Thursday.

* Agence France-Presse and Bloomberg

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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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