NY bomb suspect was bound for Pakistan


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DUBAI // A Pakistani-American man accused of trying to detonate a bomb in New York's Times Square was heading for Pakistan when he was pulled off a Dubai-bound flight called back prior to departure, the airline said on today. Asked what Faisal Shahzad's final destination had been, an Emirates Airline spokesman said: "It was Islamabad." Prosecutors charged Mr Shahzad, 30, a naturalised US citizen born in Pakistan, with five counts, including attempting to use a weapon of mass destruction and trying to kill and maim people within the United States. He faces a life sentence if convicted.

Mr Shahzad was arrested on Monday after he was taken off an Emirates plane that was about to depart for Dubai, a major transit hub. Hours later, several of his relatives were arrested in Pakistan, security sources said. Emirates said three people were removed from the flight but two were later cleared and allowed on board. All passengers were taken off the plane and screened before the plane left for Dubai.

US authorities are investigating whether Emirates made a mistake in letting Mr Shahzad on one of its aircraft. The former financial analyst was accused of driving a crude homemade bomb of gasoline, propane gas, fireworks and fertiliser into a busy Times Square on Saturday night. The bomb was in a sport utility vehicle that prosecutors said Shahzad bought for US$1,300 (Dh 4,775) in cash. Prosecutors said Mr Shahzad admitted to the bomb attempt and to receiving training in a Taliban and al Qa'eda stronghold in Pakistan.

Passengers on the New York-to-Dubai flight described the mood on the Emirates plane as calm and controlled as police boarded before take-off to remove several passengers. "Honestly nobody panicked, everybody was so calm, everybody was so quiet. There were a lot of people who had connecting flights, they just wanted to get the hell out of JFK," said Egyptian Azza Abou al Magd, who was on the plane.

She said that one of those removed from the flight was whisked out by armed police officers who confiscated the man's phone and politely and quietly escorted him off the plane. The Taliban in Pakistan claimed responsibility for the bomb attempt, saying it was to avenge the killing of two top al Qa'eda leaders in Iraq and for US interference in Muslim countries. While some US officials were sceptical about the claim, the Pakistani foreign minister Shah Mehmood Qureshi told CBS News he believed the failed attack was a retaliation for the United States targeting Taliban followers.

Passengers on the Emirates flight said they were not informed of the magnitude of what was happening on the plane. "They didn't tell us: 'Hey listen guys we have someone'. We didn't know what was going on, when we went back to the taxi and then we went back to the airport that was when we became somewhat concerned," Faye Roy, a passenger, said. "I called a friend at home and said turn on CNN and tell me what's going on my plane and he told me," she said after the delayed flight arrived in Dubai this morning.

Another passenger, Samir al Ammari, said: "I was worried. I was planning to cancel the flight and take another ... It was very difficult when you hear about something like this." * Reuters

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.”