The UN Security Council meeting after North Korea fired a ballistic missile over Japan on Tuesday. Reuters
The UN Security Council meeting after North Korea fired a ballistic missile over Japan on Tuesday. Reuters
The UN Security Council meeting after North Korea fired a ballistic missile over Japan on Tuesday. Reuters
The UN Security Council meeting after North Korea fired a ballistic missile over Japan on Tuesday. Reuters

North Korea's missile launch over Japan a 'reckless act', says UN


Adla Massoud
  • English
  • Arabic

North Korea’s ballistic missile launch over Japan on Tuesday was a “reckless act” and a “clear violation” of Security Council resolutions, said Khaled Khiari, UN assistant secretary general for the Middle East, Asia and the Pacific.

During the UN council open meeting, which was requested by the US, Mr Khiari said the launch could have caused a significant escalation of tension in the region and beyond.

“It is of serious concern that the DPRK has again disregarded any consideration for international flight or maritime safety,” he said.

The missile was reportedly launched from the northern province of Jagang, covered a range of 4,500 kilometres and reached a maximum of about 970km.

It is the first time since 2017 that North Korea has launched a ballistic missile over Japan.

The US ambassador to the UN, Linda Thomas-Greenfield, reminded council members that North Korea launched a record 39 ballistic missiles this year — passing its previous record of 25.

She said two permanent members of the Security Council have enabled Kim Jong-un, rejecting claims by Russia and China that these launches are in response to US provocation.

“And before these two council members repeat their myth that the DPRK’s provocations are somehow a consequence of hostile US policies and actions, let’s review the facts,” Ms Thomas-Greenfield said.

In recent years, China and Russia have suggested UN sanctions on North Korea be eased for humanitarian purposes and to entice Pyongyang back to stalled international talks aimed at persuading Mr Kim to give up his denuclear arsenal.

“This is a clear effort by China and Russia to reward DPRK for their bad actions and cannot be taken seriously by this council,” Ms Thomas-Greenfield said.

The launch comes amid a spate of missile tests, with four launches in the past two weeks, and follows renewed military drills between the US and its regional allies.

China’s deputy UN ambassador, Geng Shuang, who took the floor twice at the meeting, called on the US to respect North Korea’s “legitimate” concerns and noted the ballistic missile launches were “isolated”.

He urged the countries concerned to “meet each other halfway” and announced that China was ready to “make further contributions in this regard”.

He said that sanctions “cannot solve everything”.

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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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Key findings of Jenkins report
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  • Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
  • Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
  • Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
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Updated: October 05, 2022, 10:40 PM