The US has spent much of the last year trying to convince the Iran-backed Houthis to sign on to a proposed ceasefire with Saudi Arabia. EPA
The US has spent much of the last year trying to convince the Iran-backed Houthis to sign on to a proposed ceasefire with Saudi Arabia. EPA
The US has spent much of the last year trying to convince the Iran-backed Houthis to sign on to a proposed ceasefire with Saudi Arabia. EPA
The US has spent much of the last year trying to convince the Iran-backed Houthis to sign on to a proposed ceasefire with Saudi Arabia. EPA

US sanctions senior Houthi military leader


Bryant Harris
  • English
  • Arabic

The US on Thursday sanctioned senior Houthi military officer Saleh Mesfer Al Shaer, who oversees assets confiscated from opponents fighting the Yemeni rebel group.

The Treasury Department announced that it is blocking all assets and entities under Mr Al Shaer’s control.

It noted that Mr Al Shaer, who commands the Houthi military logistics support organisation, has seized more than $100 million in property from the group’s opponents.

“Saleh Mesfer Al Shaer is the principal Houthi military official responsible for pilfering assets from Yemeni citizens and directing a campaign of seizures that further prolongs the ongoing conflict in Yemen by obstructing its resolution,” said Andrea Gacki, who oversees sanctions at the Treasury Department.

“The United States remains committed to exposing those who exacerbate the crisis in Yemen by denying them access to the global financial system.”

The UN Security Council also levied international sanctions on Mr Al Shaer this month.

The Treasury Department said that Mr Al Shaer oversaw the confiscation of assets last year from 35 Yemeni parliamentarians opposed to the Houthis while withdrawing funds from several hospitals in Sanaa.

  • Fighters loyal to Yemen's government on the front line facing Iran-backed Houthi rebels in the country's north-eastern province of Marib on September 27. All photos: AFP
    Fighters loyal to Yemen's government on the front line facing Iran-backed Houthi rebels in the country's north-eastern province of Marib on September 27. All photos: AFP
  • Fighting has intensified and the death toll has mounted in recent weeks, military sources say.
    Fighting has intensified and the death toll has mounted in recent weeks, military sources say.
  • Fighters loyal to Yemen's government perform a traditional dance at a position near the front line facing Iran-backed Houthi rebels in Marib.
    Fighters loyal to Yemen's government perform a traditional dance at a position near the front line facing Iran-backed Houthi rebels in Marib.
  • Smoke billows during clashes between forces loyal to Yemen's government and Houthi rebel fighters in Marib.
    Smoke billows during clashes between forces loyal to Yemen's government and Houthi rebel fighters in Marib.
  • A pro-government fighter fires at positions held by Iran-backed Houthi rebels in clashes for the strategic city of Marib.
    A pro-government fighter fires at positions held by Iran-backed Houthi rebels in clashes for the strategic city of Marib.

The sanctions come after the Houthis stormed the former US embassy compound in Sanaa last week.

They have also detained two Yemeni citizens working for the UN.

US President Joe Biden’s special envoy for Yemen, Tim Lenderking, is travelling to Saudi Arabia and Bahrain this week and is expected to address issues related to the embassy.

Mr Lenderking has spent much of the last year trying to convince the Iran-backed Houthis to sign on to Saudi Arabia’s proposed ceasefire — to no avail.

Instead, the rebels have continued their offensive on Yemen’s oil-rich Marib province while citing the Saudi blockade of Yemeni ports as justification for not accepting the ceasefire proposal.

The Biden administration lifted former president Donald Trump’s last-minute designation of the Houthis as a terrorist organisation this year to resume humanitarian aid to the country, which is facing widespread famine.

However, the Biden administration has maintained sanctions on several Houthi officials — now joined by Mr Al Shaer.

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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.”

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Updated: November 18, 2021, 9:19 PM