Hans Grundberg, the UN special envoy for Yemen, speaks during a news conference after talks with Houthi officials. EPA
Hans Grundberg, the UN special envoy for Yemen, speaks during a news conference after talks with Houthi officials. EPA
Hans Grundberg, the UN special envoy for Yemen, speaks during a news conference after talks with Houthi officials. EPA
Hans Grundberg, the UN special envoy for Yemen, speaks during a news conference after talks with Houthi officials. EPA

UN envoy urges Yemeni parties to build on progress and take decisive steps


Adla Massoud
  • English
  • Arabic

The UN’s envoy to Yemen on Wednesday urged parties involved in the country's conflict to build on progress and take decisive steps towards a peaceful and comprehensive solution.

Speaking at a UN Security Council meeting on recent peace efforts, Hans Grundberg said he was encouraged by the positive and detailed discussions he had with Yemeni parties and regional interlocutors.

Despite some challenges, there was room for “cautious optimism”, he said.

Last year's “truce provided a conducive environment and starting point”, Mr Grundberg said.

“But the fragility of the military situation, the dire state of the economy and the daily challenges facing the Yemeni people provide us with constant reminders of why a more comprehensive agreement between the parties is so vital.”

He also expressed concern over reports of continuing violence across front lines, restrictions on freedom of movement and the government's inability to export oil, which generated more than half of the state's total revenue last year, and “is straining the government’s capacity to meet its obligations to the Yemeni people”.

The UAE’s ambassador to the UN, Lana Nusseibeh called on the Iran-backed Houthi rebels to engage constructively and lay the groundwork for an enduring peace.

“It has become evident that dialogue remains the sole path to achieving a political settlement," Ms Nusseibeh said.

"A belligerent stance and reliance on armed coercion are not only unacceptable, but also detrimental to the welfare of the Yemeni people."

US ambassador for special political affairs Jeffrey DeLaurentis said an inclusive political process should address Yemenis' calls for justice, accountability and redress for human rights abuses.

“As we have said before, this is the only way to achieve a lasting peace in Yemen,” he said.

Britain’s UN ambassador Barbara Woodward addressed the threat posed to Yemen and the region by the deteriorating FSO Safer oil tanker and reminded council members that as much as 80 per cent of the Yemen funding appeal remains unmet.

She said $43 million is still needed for the UN co-ordinated oil tanker’s removal to stop the risk of “over a million barrels of oil leaking into the Red Sea”.

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: May 17, 2023, 8:49 PM