A member of the National Bolivarian Militia is being carried during a military parade on "National Bolivarian Militia Day" at Los Proceres in Caracas, Venezuela, on Saturday, April 13, 2019. Bloomberg
A member of the National Bolivarian Militia is being carried during a military parade on "National Bolivarian Militia Day" at Los Proceres in Caracas, Venezuela, on Saturday, April 13, 2019. Bloomberg
A member of the National Bolivarian Militia is being carried during a military parade on "National Bolivarian Militia Day" at Los Proceres in Caracas, Venezuela, on Saturday, April 13, 2019. Bloomberg
A member of the National Bolivarian Militia is being carried during a military parade on "National Bolivarian Militia Day" at Los Proceres in Caracas, Venezuela, on Saturday, April 13, 2019. Bloomberg

Venezuela's Maduro orders militia expansion to one million members


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Venezuelan President Nicolas Maduro on Saturday ordered an expansion of civilian militia by nearly a million members as opposition leader Juan Guaido toured western Zulia state, which has been hard hit by electricity blackouts.

Mr Guaido, the leader of the opposition-controlled National Assembly who in January invoked Venezuela's constitution to assume an interim presidency, has called on the military to abandon Mr Maduro amid a hyperinflationary economic collapse made worse by several nationwide blackouts in the past month.

Mr Guaido has been recognised as Venezuela's rightful leader by the United States and most Western countries, who agree with his argument that Mr Maduro's 2018 re-election was illegitimate.

The civilian militia, created in 2008 by the late former president and Mr Maduro's mentor Hugo Chavez, reports directly to the presidency and is intended to complement the armed forces.

Mr Maduro, who calls Mr Guaido a US puppet, said he aimed to raise the number of militia members to 3 million by year-end from what he said was more than 2 million currently. Mr Maduro has encouraged them to become involved in agricultural production.

Shortages of food and medicine have prompted more than 3 million Venezuelans to emigrate in recent years.

"With your rifles on your shoulders, be ready to defend the fatherland and dig the furrow to plant the seeds to produce food for the community, for the people," Mr Maduro, a socialist, told thousands of militia members gathered in the capital Caracas, wearing khaki camouflaged uniforms.

So far, the military top brass has remained loyal to Mr Maduro despite Mr Guaido's offer of amnesty to military members who switch sides. Hundreds of soldiers have sought asylum in neighboring Colombia.

While electricity has largely been restored in Caracas, Mr Maduro's administration is rationing power to the rest of Venezuela.

Mr Guaido is traveling in the interior to drum up support. In Zulia state, the site of the Opec member's first oil well and home to Venezuela's second-largest city, Maracaibo, he said: "We are here to check on the situation, your suffering. But Zulia will rise up."

Separately on Saturday, two employees of Venezuela's central bank who were arrested after meeting with Mr Guaido earlier this week were freed, rights group Penal Forum said.

Rights groups say Venezuelan authorities have arrested over 1,000 people after anti-government demonstrations this year. Mr Guaido's chief of staff was arrested last month.

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The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments

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

Favourite film: Motorcycle Dairies, Monsieur Hulot’s Holiday, Kagemusha

Favourite book: One Hundred Years of Solitude

Holiday destination: Sri Lanka

First car: VW Golf

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Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

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Abi Andrews, Serpent’s Tail

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Abdullah Abdullah 39.52 per cent

Gulbuddin Hekmatyar 3.85 per cent

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