A family arrives at Melsbroek military airport in Belgium from Kabul after the Taliban retook took control of Afghanistan. Reuters
A family arrives at Melsbroek military airport in Belgium from Kabul after the Taliban retook took control of Afghanistan. Reuters
A family arrives at Melsbroek military airport in Belgium from Kabul after the Taliban retook took control of Afghanistan. Reuters
A family arrives at Melsbroek military airport in Belgium from Kabul after the Taliban retook took control of Afghanistan. Reuters

Hundreds of Afghans waiting more than a year for UK resettlement


Layla Maghribi
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As the Taliban’s deadline for evacuations from Afghanistan fast approaches, thousands of Afghans still seek an escape from life under the hard-liners' control.

Amid a desperate scramble on the ground, refugee agencies raised concerns that the UK is already lagging behind promises it made to refugees more than a year ago.

Hundreds of Afghans who were accepted on resettlement schemes to Britain have been waiting in refugee camps for more than 18 months to be transferred to the UK, The Independent reported.

About 200 Afghan refugees were accepted by the UK Home Office before March 2020, but had their cases put on hold because of the pandemic and have yet to be transferred. According to the United Nations' Refugee Agency (UNHCR) the refugees are living in camps and informal settlements in countries such asTurkey, Iran and India.

Last week, Home Secretary Priti Patel announced a new Afghan resettlement scheme that would offer homes to 20,000 people over five years, with 5,000 expected to arrive in the first year.

UNHCR spokeswoman Laura Padoan told The Independent she was worried the new scheme would further delay the transfer of hundreds of already displaced Afghans. There are also concerns over the status of hundreds of other refugees from around the world who were accepted on previous schemes.

“At the moment we don’t have any details about whether the Afghan resettlement scheme will see the UNHCR identify refugees in a traditional resettlement model way, or whether the government is proposing something different. We really hope to get clarity on that,” Ms Padoan said.

“But something that can be done now is to resettle the Afghans who have already been identified as being in need of resettlement and are due to come to the UK.”

Applications for the new Afghan resettlement scheme have not yet opened. In March 2021, the Vulnerable Persons Resettlement Scheme (VPRS), which committed to welcoming 20,000 refugees from Syria between 2015 and 2020, came to an end. A new global resettlement scheme aimed at resettling 5,000 refugees a year was announced to replace the VPRS once it ended, but the Home Office later scrapped the target under its new immigration plans.

“Around the world there are hundreds of thousands of refugees who need to be resettled. We don’t have a commitment from the UK, and we desperately need it to come forward and offer places to those people in need,” Ms Padoan said.

“It can’t all be done on an ad-hoc basis. It’s absolutely necessary for the government to work with the UNHCR, who are identifying the refugees, and also local authorities and charities offering support services in the UK.”

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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.”

Updated: August 25, 2021, 9:06 AM