A Houthi militant keeps watch during an anti-US protest in Sanaa, Yemen, on January 25, 2021. EPA
A Houthi militant keeps watch during an anti-US protest in Sanaa, Yemen, on January 25, 2021. EPA
A Houthi militant keeps watch during an anti-US protest in Sanaa, Yemen, on January 25, 2021. EPA
A Houthi militant keeps watch during an anti-US protest in Sanaa, Yemen, on January 25, 2021. EPA

Biden administration suspends some Houthi sanctions for one month


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The US government has suspended some sanctions placed on Yemen’s Houthis by the Trump administration while a review into the designation is carried out, the US Treasury said on Monday night.

The former secretary of state Mike Pompeo issued the designation labelling the Iran-backed rebels as a Foreign Terrorist Organisation on January 10. While the move was welcomed by members of Yemen’s government and its allies, aid groups said the move could complicate efforts to reach vulnerable communities living in areas under rebel control.

Critics said the sanctions would exacerbate what is already one of the world’s worst humanitarian crises by barring aid deliveries to civilians in the war-torn nation.

The Treasury Department’s Office of Foreign Assets Control issued a general licence for transactions with entities owned by the Iran-backed Houthis, giving an exemption for certain transactions with the rebels, for one month until February 26.

Mr Pompeo’s sanctions took effect on January 19, only a day before President Joe Biden was inaugurated.

On Monday, Yemeni Prime Minister Maeen Abdulmalik Saeed praised the sanctions and said the designation “should be built upon by the European Union and the international community to put an end to the Houthi militias’ recklessness towards political solutions, and their insistence on executing Iran’s agenda without caring about the suffering and the lives of the Yemeni people.”

The US Treasury’s licence does not reverse Mr Pompeo’s designations and does not apply to specific members of the Houthi group, who have been otherwise been subjected to sanctions.

The Iranian-backed Houthis control the capital and much of Yemen’s north, where the majority of the population lives, following a coup in 2015. The takeover of the capital led to the Saudi-led Coalition of Arab states intervening at the request of the internationally recognised government of President Abdrabu Mansur Hadi to remove the rebels from the city.

But the conflict has caused what the UN calls the world’s worst humanitarian crisis with more than 80 per cent of the population reliant on aid.

With the Houthi rebels controlling much of the north and the capital – where the majority of the population lives – aid agencies are reliant on the group for access to those in need. Most of the aid is imported through the Houthi-controlled port of Hodeidah.

The UN says 13.5 million out of Yemen’s 30 million population already face acute food insecurity, a figure that could rise to 16 million by June.

Washington’s designation of the rebels was part of the Trump administration’s broader effort to isolate and cripple Iran.

Saudi Arabia has advocated the terrorism designation, hoping it would pressure the rebels to reach a peace deal. Past rounds of peace talks and ceasefire agreements have faltered over technicalities, despite efforts to achieve a lasting solution.

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Everton 0

Arsenal 0

Man of the Match: Djibril Sidibe (Everton)

Men's football draw

Group A: UAE, Spain, South Africa, Jamaica

Group B: Bangladesh, Serbia, Korea

Group C: Bharat, Denmark, Kenya, USA

Group D: Oman, Austria, Rwanda

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

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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The biog

Prefers vegetables and fish to meat and would choose salad over pizza

Walks daily as part of regular exercise routine 

France is her favourite country to visit

Has written books and manuals on women’s education, first aid and health for the family

Family: Husband, three sons and a daughter

Fathiya Nadhari's instructions to her children was to give back to the country

The children worked as young volunteers in social, education and health campaigns

Her motto is to never stop working for the country

Desert Warrior

Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5

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