US to help improve Iraq's defences after Iran missile attack


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The US is speaking with authorities in Iraq and the regional Iraqi Kurdistan government to help improve their missile defence capabilities after an attack by Iran.

On Sunday, Iran launched up to 12 ballistic missiles aimed at a US consulate complex under construction in Erbil, in an attack described by Iraq's president as an act of “terror".

US National Security Adviser Jake Sullivan condemned the assault on the capital of Iraq's northern Kurdish region.

Mr Sullivan said no US citizens were harmed in the attack and no American installations were hit. He told TV network CBS the US would do whatever it takes to defend its people, interests and allies.

“We are in consultation with the Iraqi government and the government in Iraqi Kurdistan, in part to help them get the missile defence capabilities to be able to defend themselves in their cities,” Mr Sullivan said.

Iran's Revolutionary Guards claimed responsibility for the attack in the early hours of Sunday, Iranian state media reported.

The missiles were aimed at the US consulate among other sites, said the Kurdish regional government.

  • A woman inspects damage in a children's room following an overnight attack in Erbil, the capital of the northern Iraqi Kurdish autonomous region. All photos by AFP
    A woman inspects damage in a children's room following an overnight attack in Erbil, the capital of the northern Iraqi Kurdish autonomous region. All photos by AFP
  • Damage at a shop.
    Damage at a shop.
  • A man inspects the damage at his home.
    A man inspects the damage at his home.
  • The damaged studio at the Kurdistan 24 TV building.
    The damaged studio at the Kurdistan 24 TV building.
  • Twelve missiles were fired early on Sunday, the state news agency and local leaders said.
    Twelve missiles were fired early on Sunday, the state news agency and local leaders said.
  • A man cleans debris in the Kurdistan 24 TV building.
    A man cleans debris in the Kurdistan 24 TV building.
  • A damaged building after the overnight attack in Erbil. US officials, speaking to AFP, said the missiles came from Iran.
    A damaged building after the overnight attack in Erbil. US officials, speaking to AFP, said the missiles came from Iran.
  • Ziryan Wazir rests at home after being wounded in the attack.
    Ziryan Wazir rests at home after being wounded in the attack.

Mr Sullivan, in a subsequent statement released by the White House, said the US backs Baghdad and governments across the region in the face of threats from Tehran.

“We will support the government of Iraq in holding Iran accountable, and we will support our partners throughout the Middle East in confronting similar threats from Iran,” he said.

Asked about the attack's impact on negotiations aimed at signing a nuclear deal with Iran, which are already at an impasse, Mr Sullivan said: “The various negotiators are back home in their capitals and we will have to see what happens in the days ahead with respect to the diplomacy around the nuclear deal.”

He said President Joe Biden remained strongly committed to stopping Iran from acquiring nuclear weapons.

“One thing I will say is that the only thing more dangerous than Iran armed with ballistic missiles and advanced military capabilities is an Iran that has all of those things and a nuclear weapon,” he said.

US National Security Adviser Jake Sullivan said no US citizens were harmed in the attack and no American installations were hit. AP
US National Security Adviser Jake Sullivan said no US citizens were harmed in the attack and no American installations were hit. AP

US forces stationed at the Erbil International Airport complex have previously come under fire from rocket and drone attacks that Washington blamed on Iran-aligned militia groups, but no such attacks had occurred for several months.

The US Department of Defence referred all queries about Mr Sullivan's comments on missile defence capabilities to the State Department, which oversees security assistance agreements with other countries.

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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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The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.

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Updated: March 14, 2022, 9:04 AM