Mariupol residents walk past a tank belonging to pro-Russian forces in the besieged southern port city. Reuters
Mariupol residents walk past a tank belonging to pro-Russian forces in the besieged southern port city. Reuters
Mariupol residents walk past a tank belonging to pro-Russian forces in the besieged southern port city. Reuters
Mariupol residents walk past a tank belonging to pro-Russian forces in the besieged southern port city. Reuters

Ukraine faces moment of 'true peril' if new Russian offensive begins


Thomas Harding
  • English
  • Arabic

Ukraine faces a moment of “true peril” in the weeks ahead as Russian military commanders plan to encircle its best troops, analysts have said.

Up to 45,000 soldiers — a third of Ukraine’s professional army along with some of its recently acquired equipment — are in Donbas, on the front line with separatists and Russian forces in the east.

If the siege of Mariupol ends quickly, many Russia troops will be freed for a pincer movement from the north and south to entrap Ukrainian forces in the area referred to as the Joint Forces Operation (JFO) — the troops sent to the eastern line of contact that bounded the separatist-held areas of Donetsk and Luhansk.

The war could then turn, with Russia’s larger forces and amount of equipment overwhelming Ukraine’s superior fighting skills.

This satellite image shows the damaged Mariupol Drama Theatre, top centre, and the area around it in Mariupol, Ukraine. AP
This satellite image shows the damaged Mariupol Drama Theatre, top centre, and the area around it in Mariupol, Ukraine. AP

This scenario increases the importance of Mariupol, as the longer it holds out, the more losses Russia will suffer, weakening its southern pincer.

Mariupol’s tenacity will also buy time for the JFO to either strengthen defences or leave before being cut off.

“We are entering the period of true peril for Ukraine where [the prospect of] encirclement and destruction for its forces starts to become more realistic,” said Sam Cranny-Evans, an analyst at the Royal United Services Institute, a London think tank.

.
.

“I think we're going to begin seeing the situation really start to shift in Russia's favour.”

Defence strategist Brigadier Ben Barry agreed with Mr Cranny-Evans's assessment that a moment of alarm had arrived for Ukraine's military.

“The Ukrainians must be concerned, or they ought to be concerned about this,” said Mr Barry, senior fellow for land warfare at the International Institute for Strategic Studies think tank.

“Because if Mariupol falls, then that releases Russian forces to do different things, one of which could be to continue to push north up along the lines of the Dnieper Valley in an effort to threaten the forces in eastern Ukraine in Donbas.”

What can Ukraine do?

Central to Ukraine's efforts to counter Russia artillery will be the ability to locate and destroy it, analysts said. Ukraine has — and is reported to be acquiring more — US-made radar that can precisely locate or trace artillery and rocket fire.

If the Ukrainians have preserved their self-propelled howitzers and missiles, this might allow them to counter the Russian artillery threat.

However, it is a question of resources and of whether sufficient stocks are getting into Ukrainian hands from the West.

So far, the supply of anti-tank and anti-aircraft missiles has allowed Ukraine to keep Russia at bay.

A Russian Su-27 fighter aircraft is pictured in Russia earlier this month during a Russian military operation in support of Donbas. EPA
A Russian Su-27 fighter aircraft is pictured in Russia earlier this month during a Russian military operation in support of Donbas. EPA

More radar, drones and long-range precision missiles could make a significant difference to Ukrainian operations.

Ukrainian forces have also chosen to fight in small units that can mount swift attacks on armoured columns.

Once Russia co-ordinates its electronic warfare systems with its artillery and its drones, it will be able to locate and attack Ukrainian troops.

Moscow’s generals will also be seeking to force the Ukrainians to “mass in a place that suits Russia”, where it can “decisively engage them when they emerge”, Mr Cranny-Evans said.

“If the Russians are able to start surrounding these major town and the Ukrainians can't get through to their forces, then time begins to shift in favour of Russia because Russia can continue those bombardments indefinitely.

“That really changes the tempo of the operation.”

Battle at Kramatorsk

If Mariupol falls and the Russian forces to the south of Kharkiv push on, Ukraine’s best troops could find themselves besieged at Kramatorsk.

Faced by a pincer movement and entrapment, they would have to decide on fight or flight.

If a force remains, there will be heavy fighting and Russia’s greater numbers could overwhelm Ukraine’s best troops, especially the combat-hardened JFO.

“They will start losing casualties because the JFO have either got to stay or escape,” said Tim Ripley, an analyst with Janes Defence Weekly.

“If they try to escape, they'll be vulnerable to being spotted and attacked. That's the point where Russia’s advantages in artillery and air power come into play.

“That's why the Ukrainians are fighting like tigers in Mariupol, trying to tie down as many troops as possible so the Russians cannot use them to attack the JFO.”

A building damaged by shelling in Kramatorsk, Ukraine. Reuters
A building damaged by shelling in Kramatorsk, Ukraine. Reuters

If the encirclement of the JFO stops any supplies getting in, then the end could come “quite quickly”, Mr Cranny-Evans said.

“You will end up with a very one-sided fight and we'd probably know about the result before it was over.”

The JFO encirclement is something western defence sources also fear but believe Kyiv’s generals will be alert to the danger.

“It’s the area of the battlefield where we've got the greatest concern,” a defence source told The National. “There's a vulnerability for those forces to encirclement.”

But a sudden Ukraine withdrawal could also end in “road of death territory” if the Russians started co-ordinating their hardware, said Mr Ripley, author of Little Green Men: Putin’s Wars since 2014.

The unknowns

The extent of losses on both sides is unclear. Ukraine's military dead could be as high as 4,000 and Russia’s 10,000, some estimates show.

Much of the imagery shown on platforms such as Telegram or TikTok are managed by both sides and, without proper intelligence, it is like “looking through a drinking straw”, Brig Barry said.

Both sides are managing information to “match their messaging”, with Ukraine showing the world that it is the victim but that it could hold out with western help.

The Russian “punishment strategy of bombardment” was possibly to improve their position before negotiations.

“Or it may be marshalling its supplies to recommence operations with a large offensive somewhere — or several large offensives,” Brig Barry said.

“We also shouldn't forget also the political significance of Kyiv and we can't rule out a renewed effort to encircle the capital.”

Spring offensive

Spring weather will mean the snowmelt “rasputitsa” mud that has forced Russian tanks on to roads will recede, allowing greater force mobility across Ukraine.

Russia will be able to restock its supply lines, but that also applies to Ukraine’s armour and lorries, particularly the brigades in the JFO.

Although there have been Russian atrocities, the war has also so far remained “limited”, in that neither side has escalated to the level of mass direct attacks on civilians such as the bombing of refugee trains or Ukraine launching missile against Russian cities.

  • A firefighter works at a residential district that was damaged by shelling, as Russia's invasion of Ukraine continues, in Kyiv, Ukraine. Reuters
    A firefighter works at a residential district that was damaged by shelling, as Russia's invasion of Ukraine continues, in Kyiv, Ukraine. Reuters
  • A woman removes pieces of broken glass from a shop window after a bombing in Kyiv, Ukraine. AP
    A woman removes pieces of broken glass from a shop window after a bombing in Kyiv, Ukraine. AP
  • Residents clean the street outside apartments damaged by shelling, in Kyiv, Ukraine. AP
    Residents clean the street outside apartments damaged by shelling, in Kyiv, Ukraine. AP
  • A man walks at a residential district that was damaged by shelling, as Russia's invasion of Ukraine continues, in Kyiv, Ukraine. Reuters
    A man walks at a residential district that was damaged by shelling, as Russia's invasion of Ukraine continues, in Kyiv, Ukraine. Reuters
  • Rescuers work at the site of buildings damaged by shelling, as Russia's invasion of Ukraine continues, in Mykolaiv, Ukraine. Reuters
    Rescuers work at the site of buildings damaged by shelling, as Russia's invasion of Ukraine continues, in Mykolaiv, Ukraine. Reuters
  • Launch of missiles by the coastal missile system 'Bastion' on infrastructure facilities of the Armed Forces of Ukraine from an undisclosed position in Crimea. As a result of a strike with long-range precision weapons, an arsenal with weapons and military equipment of Ukrainian troops in the village of Orzhev, 14 kilometres north-west of the city of Rivne, two Tochka-U launchers near Kiev, and eight anti-aircraft missile systems were destroyed. EPA
    Launch of missiles by the coastal missile system 'Bastion' on infrastructure facilities of the Armed Forces of Ukraine from an undisclosed position in Crimea. As a result of a strike with long-range precision weapons, an arsenal with weapons and military equipment of Ukrainian troops in the village of Orzhev, 14 kilometres north-west of the city of Rivne, two Tochka-U launchers near Kiev, and eight anti-aircraft missile systems were destroyed. EPA
  • Pictures lie amidst the rubble of former teacher Natalia's house which was was hit in a military strike, amid Russia's invasion of Ukraine, in Kyiv, Ukraine. Reuters
    Pictures lie amidst the rubble of former teacher Natalia's house which was was hit in a military strike, amid Russia's invasion of Ukraine, in Kyiv, Ukraine. Reuters
  • A Ukrainian serviceman rests at his position in Kharkiv, Ukraine. AP
    A Ukrainian serviceman rests at his position in Kharkiv, Ukraine. AP
  • A hug for a child at the railway station in Przemysl, near the Polish-Ukrainian border, as Ukrainian refugees make their way out of the war zone. AFP
    A hug for a child at the railway station in Przemysl, near the Polish-Ukrainian border, as Ukrainian refugees make their way out of the war zone. AFP
  • Displaced Ukrainians on a Poland-bound train bid farewell at Lviv, western Ukraine. AP
    Displaced Ukrainians on a Poland-bound train bid farewell at Lviv, western Ukraine. AP
  • Ukrainian servicemen rest in Kharkiv. AP
    Ukrainian servicemen rest in Kharkiv. AP
  • A car wrecked and burnt by shelling in a street in Kharkiv, Ukraine. AP
    A car wrecked and burnt by shelling in a street in Kharkiv, Ukraine. AP
  • A member of pro-Russian unit in uniform without insignia handles a mortar round at a weapons depot near Marinka, in the Donetsk region of Ukraine. Reuters
    A member of pro-Russian unit in uniform without insignia handles a mortar round at a weapons depot near Marinka, in the Donetsk region of Ukraine. Reuters
  • The aftermath of shelling in the eastern Ukrainian city of Kharkiv. EPA
    The aftermath of shelling in the eastern Ukrainian city of Kharkiv. EPA
  • Nurses in tears after Russian shelling of a psychiatric hospital in Mykolaiv, southern Ukraine. AFP
    Nurses in tears after Russian shelling of a psychiatric hospital in Mykolaiv, southern Ukraine. AFP
  • Candles and lights form a giant peace sign during the Avaaz vigil in front of the European Council and Commission buildings in Brussels, Belgium. AP
    Candles and lights form a giant peace sign during the Avaaz vigil in front of the European Council and Commission buildings in Brussels, Belgium. AP
  • A wrecked car in a ruined street in Kharkiv, Ukraine. AP
    A wrecked car in a ruined street in Kharkiv, Ukraine. AP
  • Rescue workers at an industrial building damaged by an air strike in Kyiv, Ukraine. Reuters
    Rescue workers at an industrial building damaged by an air strike in Kyiv, Ukraine. Reuters
  • The monument to the Duke of Richelieu, one of the founders of the city of Odesa, is covered by sand bags. Near by, a placard shows the building before the Russian invasion. EPA
    The monument to the Duke of Richelieu, one of the founders of the city of Odesa, is covered by sand bags. Near by, a placard shows the building before the Russian invasion. EPA
  • People clean up a room in an apartment building in Kyiv destroyed in an air raid, as Russia presses on with its invasion of Ukraine. Reuters
    People clean up a room in an apartment building in Kyiv destroyed in an air raid, as Russia presses on with its invasion of Ukraine. Reuters
  • An instructor shows citizens how to fire the weapon during a shooting training session in Ivano-Frankivsk, Ukraine. Reuters
    An instructor shows citizens how to fire the weapon during a shooting training session in Ivano-Frankivsk, Ukraine. Reuters
  • Russian troops hurl stun grenades at demonstrators protesting against the invasion, in Kherson, Ukraine. Reuters
    Russian troops hurl stun grenades at demonstrators protesting against the invasion, in Kherson, Ukraine. Reuters
  • Ukrainian servicemen stand guard at a military checkpoint in Kyiv. AFP
    Ukrainian servicemen stand guard at a military checkpoint in Kyiv. AFP
  • Ukrainian refugees Sasha Alexandra and Olena embrace shortly before being allowed to cross into the United States to seek asylum in Tijuana, Mexico. They fled their city of Dnipro this month and travelled to Germany before flying to Mexico. AFP
    Ukrainian refugees Sasha Alexandra and Olena embrace shortly before being allowed to cross into the United States to seek asylum in Tijuana, Mexico. They fled their city of Dnipro this month and travelled to Germany before flying to Mexico. AFP
  • Ukrainian President Volodymyr Zelenskyy in a broadcast speech in Kyiv, calling on citizens to 'drive the occupiers out'. EPA
    Ukrainian President Volodymyr Zelenskyy in a broadcast speech in Kyiv, calling on citizens to 'drive the occupiers out'. EPA
  • An unexploded rocket in a cemetery in Mykolaiv, southern Ukraine. AFP
    An unexploded rocket in a cemetery in Mykolaiv, southern Ukraine. AFP
  • A portrait of a young woman who died during a Russian attack, next to her fresh grave in the Mykolaiv cemetery. AFP
    A portrait of a young woman who died during a Russian attack, next to her fresh grave in the Mykolaiv cemetery. AFP
  • Tents set up for Ukrainian refugees inside a train station in Bucharest, Romania. AFP
    Tents set up for Ukrainian refugees inside a train station in Bucharest, Romania. AFP
  • Workers cover a sculpture outside the home of Lviv National Opera to protect it from damage amid fighting in Ukraine. Reuters
    Workers cover a sculpture outside the home of Lviv National Opera to protect it from damage amid fighting in Ukraine. Reuters
  • Olena, the mother of Denys Snihur, a 25-year-old soldier killed by Russian shelling in the northern town of Ovruch, mourns him at his funeral in Lviv. Reuters
    Olena, the mother of Denys Snihur, a 25-year-old soldier killed by Russian shelling in the northern town of Ovruch, mourns him at his funeral in Lviv. Reuters
  • All that is left of a shopping centre after shelling in Kyiv. AP
    All that is left of a shopping centre after shelling in Kyiv. AP
  • Civilian volunteers attend a Ukrainian Territorial Defence Forces training camp in Brovary, north-east of Kyiv. AP
    Civilian volunteers attend a Ukrainian Territorial Defence Forces training camp in Brovary, north-east of Kyiv. AP
  • Refugees at a temporary accommodation centre in a school gymnasium in Taganrog, Russia. EPA
    Refugees at a temporary accommodation centre in a school gymnasium in Taganrog, Russia. EPA
  • Oil storage tanks burn in Chernihiv, Ukraine, in a satellite image from Maxar Technologies. EPA
    Oil storage tanks burn in Chernihiv, Ukraine, in a satellite image from Maxar Technologies. EPA
  • President Joe Biden discusses the US response to Russia's invasion of Ukraine at the Business Roundtable CEO Quarterly Meeting. EPA
    President Joe Biden discusses the US response to Russia's invasion of Ukraine at the Business Roundtable CEO Quarterly Meeting. EPA
  • The wreck of a Russian military vehicle near Kharkiv. EPA
    The wreck of a Russian military vehicle near Kharkiv. EPA
  • Firefighters work at the site of a shopping centre bombing in Kyiv. Reuters
    Firefighters work at the site of a shopping centre bombing in Kyiv. Reuters
  • Seven-year-old Amellia Anisovych, a refugee from Ukraine, sings the Ukraine national anthem at the start of a fund-raising concert in Lodz, Poland. Amellia became known for singing a song from the film 'Frozen' in a bomb shelter in Kyiv. AP
    Seven-year-old Amellia Anisovych, a refugee from Ukraine, sings the Ukraine national anthem at the start of a fund-raising concert in Lodz, Poland. Amellia became known for singing a song from the film 'Frozen' in a bomb shelter in Kyiv. AP
  • People queue at the National Stadium in Warsaw to apply for ID numbers that will entitle them to work and receive free health care and education in Poland. AP
    People queue at the National Stadium in Warsaw to apply for ID numbers that will entitle them to work and receive free health care and education in Poland. AP
  • Checkout tills are damaged at a supermarket in a shopping centre that was damaged in a bombing in Kyiv. Reuters
    Checkout tills are damaged at a supermarket in a shopping centre that was damaged in a bombing in Kyiv. Reuters
  • Cars are damaged at the site of a bombing at a shopping center in Kyiv. Reuters
    Cars are damaged at the site of a bombing at a shopping center in Kyiv. Reuters
  • A woman comforts a boy while refugees wait for Ukrainian police to check their papers and belongings in Brovary, Ukraine. AP
    A woman comforts a boy while refugees wait for Ukrainian police to check their papers and belongings in Brovary, Ukraine. AP
  • A refugee family sit in front of a tent at a temporary shelter offered by the Free Christian Church in Uszka, Hungary. Getty Images
    A refugee family sit in front of a tent at a temporary shelter offered by the Free Christian Church in Uszka, Hungary. Getty Images
  • Firefighters carry a ladder across the debris following Russian shellings that destroyed the Retroville shopping mall in Kyiv. AFP
    Firefighters carry a ladder across the debris following Russian shellings that destroyed the Retroville shopping mall in Kyiv. AFP
  • A rescuer inside a shopping mall damaged by an airstrike in Kyiv. Reuters
    A rescuer inside a shopping mall damaged by an airstrike in Kyiv. Reuters

A major escalation could present Nato with hard choices.

But should Ukraine's JFO brigades be destroyed, Russia may declare that the country has been “demilitarised”. Moscow would also have control of much of the east of Ukraine.

“If you can militarily defeat some of the best Ukraine troops in the army, that would stand grounds to say that they've demilitarised Ukraine,” Brig Barry said.

Kamindu Mendis bio

Full name: Pasqual Handi Kamindu Dilanka Mendis

Born: September 30, 1998

Age: 20 years and 26 days

Nationality: Sri Lankan

Major teams Sri Lanka's Under 19 team

Batting style: Left-hander

Bowling style: Right-arm off-spin and slow left-arm orthodox (that's right!)

HOW TO WATCH

Facebook: TheNationalNews  

Twitter: @thenationalnews  

Instagram: @thenationalnews.com  

TikTok: @thenationalnews 

UAE currency: the story behind the money in your pockets
'Cheb%20Khaled'
%3Cp%3E%3Cstrong%3EArtist%3A%20%3C%2Fstrong%3EKhaled%3Cbr%3E%3Cstrong%3ELabel%3A%20%3C%2Fstrong%3EBelieve%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
Results

2-15pm: Commercial Bank Of Dubai – Conditions (TB) Dh100,000 (Dirt) 1,400m; Winner: Al Habash, Patrick Cosgrave (jockey), Bhupat Seemar (trainer)

2.45pm: Al Shafar Investment – Handicap (TB) Dh80,000 (D) 1,200m; Winner: Day Approach, Ray Dawson, Ahmad bin Harmash

3.15pm: Dubai Real estate Centre – Handicap (TB) Dh80,000 (D) 1,600m; Winner: Celtic Prince, Richard Mullen, Rashed Bouresly

3.45pm: Jebel Ali Sprint by ARM Holding – Listed (TB) Dh500,000 (D) 1,000m; Winner: Khuzaam, Pat Dobbs, Doug Watson

4.15pm: Shadwell – Conditions (TB) Dh100,000 (D) 1,600m; Winner: Tenbury Wells, Royston Ffrench, Salem bin Ghadayer

4.45pm: Jebel Ali Stakes by ARM Holding – Listed (TB) Dh500,000 (D) 1,950m; Winner: Lost Eden, Andrea Atzeni, Doug Watson

5.15pm: Jebel Ali Racecourse – Handicap (TB) Dh76,000 (D) 1,950m; Winner: Rougher, Pat Dobbs, Doug Watson

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

THE SPECS

Engine: 1.5-litre turbocharged four-cylinder

Transmission: Constant Variable (CVT)

Power: 141bhp 

Torque: 250Nm 

Price: Dh64,500

On sale: Now

Company%20profile
%3Cp%3E%3Cbr%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Khodar%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Cairo%20and%20Alexandria%2C%20in%20Egypt%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Ayman%20Hamza%2C%20Yasser%20Eidrous%20and%20Amr%20El%20Sheikh%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20agriculture%20technology%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%24500%2C000%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Saudi%20Arabia%E2%80%99s%20Revival%20Lab%20and%20others%3Cbr%3E%3Cstrong%3EEmployees%3A%3C%2Fstrong%3E%2035%3C%2Fp%3E%0A
From Zero

Artist: Linkin Park

Label: Warner Records

Number of tracks: 11

Rating: 4/5

How the UAE gratuity payment is calculated now

Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.

The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.

1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):

a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33

b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.

2. For those who have worked more than five years

c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.

Note: The maximum figure cannot exceed two years total salary figure.

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

'Gold'

Director:Anthony Hayes

Stars:Zaf Efron, Anthony Hayes

Rating:3/5

The bio

Job: Coder, website designer and chief executive, Trinet solutions

School: Year 8 pupil at Elite English School in Abu Hail, Deira

Role Models: Mark Zuckerberg and Elon Musk

Dream City: San Francisco

Hometown: Dubai

City of birth: Thiruvilla, Kerala

Tearful appearance

Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday. 

Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow. 

She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.

A spokesman said her upset demeanour was due to a personal matter.

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.”

Company profile

Name: Back to Games and Boardgame Space

Started: Back to Games (2015); Boardgame Space (Mark Azzam became co-founder in 2017)

Founder: Back to Games (Mr Azzam); Boardgame Space (Mr Azzam and Feras Al Bastaki)

Based: Dubai and Abu Dhabi 

Industry: Back to Games (retail); Boardgame Space (wholesale and distribution) 

Funding: Back to Games: self-funded by Mr Azzam with Dh1.3 million; Mr Azzam invested Dh250,000 in Boardgame Space  

Growth: Back to Games: from 300 products in 2015 to 7,000 in 2019; Boardgame Space: from 34 games in 2017 to 3,500 in 2019

Updated: March 23, 2022, 1:45 PM