The 'FSO Safer' is moored off the west coast of Yemen where its deterioration is a cause of growing concern. Getty
The 'FSO Safer' is moored off the west coast of Yemen where its deterioration is a cause of growing concern. Getty
The 'FSO Safer' is moored off the west coast of Yemen where its deterioration is a cause of growing concern. Getty
The 'FSO Safer' is moored off the west coast of Yemen where its deterioration is a cause of growing concern. Getty

UK issues $2.4m funding to help avert 'FSO Safer’ oil spill off Yemen coast


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Britain has pledged £2 million ($2.4m) to help prevent a major oil spill off the coast of Yemen.

The UN is co-ordinating a major operation to stop an environmental disaster emanating from the stricken FSO Safer oil tanker, which is moored in the Red Sea.

The 400-metre-long Safer is one of the biggest sea vessels in the world and contains a million barrels of oil.

The UN has been co-ordinating international efforts to prevent a disastrous oil spill from the supertanker, described as a “floating time-bomb” with the potential to unleash an oil spill four times as disastrous as the 1989 Exxon Valdez incident in the Red Sea.

The funding announcement was made on Monday by Amanda Milling, the UK's Minister for the Middle East and Asia.

She called on the international community to step up its support during a meeting with counterparts from Oman, Saudi Arabia, the UAE and the US.

“A major oil spill from the Safer oil tanker would create an ecological disaster in the Red Sea and exacerbate the dire humanitarian crisis in Yemen,” Ms Milling said.

“The UK is stepping up our support to resolve this crisis. The UN are ready to implement an emergency operation but the international community must increase funding to allow them to get started.”

Of the $80m requested by the UN for phase one of the operation, $60m has been pledged so far.

The plan would involve a four-month emergency salvage operation, during which a ship-to-ship transfer would be conducted to remove the oil from the Safer on to a UN-leased vessel.

The tanker would then be cleaned and eventually, a replacement tanker would be installed.

The vessel was used as bulk storage to export the country's small crude oil resources, but has been lying unsecured since 2015 when the conflict in Yemen intensified. The abandoned and rusting ship has had almost no maintenance since.

The Iran-backed Houthi rebels control the area where the ship is located and have been monopolising access sought by the UN and technical inspectors for many years.

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1) Phishing

Fraudsters send an unsolicited email that appears to be from a financial institution or online retailer. The hoax email requests that you provide sensitive information, often by clicking on to a link leading to a fake website.

2) Smishing

The SMS equivalent of phishing. Fraudsters falsify the telephone number through “text spoofing,” so that it appears to be a genuine text from the bank.

3) Vishing

The telephone equivalent of phishing and smishing. Fraudsters may pose as bank staff, police or government officials. They may persuade the consumer to transfer money or divulge personal information.

4) SIM swap

Fraudsters duplicate the SIM of your mobile number without your knowledge or authorisation, allowing them to conduct financial transactions with your bank.

5) Identity theft

Someone illegally obtains your confidential information, through various ways, such as theft of your wallet, bank and utility bill statements, computer intrusion and social networks.

6) Prize scams

Fraudsters claiming to be authorised representatives from well-known organisations (such as Etisalat, du, Dubai Shopping Festival, Expo2020, Lulu Hypermarket etc) contact victims to tell them they have won a cash prize and request them to share confidential banking details to transfer the prize money.

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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2015 Beijing World Championships 9.79

2016 Rio Olympics 9.81

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Men’s Coach of the Year
Luis Enrique (Paris Saint-Germain)

Women’s Coach of the Year
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Updated: July 18, 2022, 5:49 PM