• This handout photo released on August 6, 2023 by the US Defence Visual Information Distribution Service (DVIDS) shows A US Navy sailor from USS Bataan (LHD 5) monitoring as the amphibious assault ship transits the Suez Canal with the 26th Marine Expeditionary Unit (MEU). More than 3,000 United States military personnel have arrived in the Red Sea aboard two warships, part of a beefed up response from Washington after tanker seizures by Iran, the US Navy said. (Photo by DVIDS / AFP) / RESTRICTED TO EDITORIAL USE - MANDATORY CREDIT "DVIDS" - NO MARKETING - NO ADVERTISING CAMPAIGNS - DISTRIBUTED AS A SERVICE TO CLIENTS
    This handout photo released on August 6, 2023 by the US Defence Visual Information Distribution Service (DVIDS) shows A US Navy sailor from USS Bataan (LHD 5) monitoring as the amphibious assault ship transits the Suez Canal with the 26th Marine Expeditionary Unit (MEU). More than 3,000 United States military personnel have arrived in the Red Sea aboard two warships, part of a beefed up response from Washington after tanker seizures by Iran, the US Navy said. (Photo by DVIDS / AFP) / RESTRICTED TO EDITORIAL USE - MANDATORY CREDIT "DVIDS" - NO MARKETING - NO ADVERTISING CAMPAIGNS - DISTRIBUTED AS A SERVICE TO CLIENTS
  • The US military is increasing its presence in the region following aggression by Tehran toward civilian commercial ships in the Strait of Hormuz. AFP
    The US military is increasing its presence in the region following aggression by Tehran toward civilian commercial ships in the Strait of Hormuz. AFP
  • US Marines on board the Bataan, a Wasp-class amphibious vessel, which left American shores on July 10. @US5thFleet / Twitter
    US Marines on board the Bataan, a Wasp-class amphibious vessel, which left American shores on July 10. @US5thFleet / Twitter
  • Tehran has criticised the deployment of the Bataan and the the landing ship USS Carter Hall, saying the region does not need 'foreigners' to provide security. US Navy
    Tehran has criticised the deployment of the Bataan and the the landing ship USS Carter Hall, saying the region does not need 'foreigners' to provide security. US Navy

Thousands of US forces reach Red Sea to protect regional shipping


Ellie Sennett
  • English
  • Arabic

More than 3,000 American sailors and marines arrived in the Middle East on Monday, the US Navy announced, as Washington beefs up its presence in the region amid rising tension with Iran.

The navy said the increased presence “brings to the region additional aviation and naval assets, as well as more US marines and sailors, providing greater flexibility and maritime capability to US 5th Fleet”.

The deployment comes days after the Associated Press reported that Washington was considering putting armed personnel on commercial ships travelling through the Strait of Hormuz – an unprecedented action aimed at stopping Iran from seizing and harassing civilian vessels.

Meanwhile, the spokesman for the US Fifth Fleet Tim Hawkins, told Al-Sharq news on Monday that “the security of navigation in the Strait of Hormuz is a priority for the United States” and accused Tehran of “repeatedly threatening the security of navigation over the past two years”.

Among the ships reaching the Red Sea on Monday were the USS Bataan and USS Carter Hall, which left American shores on July 10 on a mission the Pentagon described as being “in response to recent attempts by Iran to threaten the free flow of commerce in the Strait of Hormuz and its surrounding waters”.

The deployment has captured Iran's attention, with its chief diplomat telling neighbouring nations that the region does not need “foreigners” providing security.

Last week, Iran’s Islamic Revolutionary Guard Corps launched a surprise military drill on disputed islands in Gulf waters.

This spring, Iran commandeered two oil tankers in the Gulf and seized the Marshall Islands-flagged Advantage Sweet, which was carrying Kuwaiti crude oil bound for US energy firm Chevron Corp.

US President Joe Biden's administration announced in May that it was working to bolster Washington's defensive posture in the Gulf, including increased “co-ordination and interoperability of the International Maritime Security construct and European Maritime awareness in the Strait of Hormuz”, National Security Council spokesman John Kirby said.

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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Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Company profile

Name: Fruitful Day

Founders: Marie-Christine Luijckx, Lyla Dalal AlRawi, Lindsey Fournie

Based: Dubai, UAE

Founded: 2015

Number of employees: 30

Sector: F&B

Funding so far: Dh3 million

Future funding plans: None at present

Future markets: Saudi Arabia, potentially Kuwait and other GCC countries

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Winner: Rawy, Mickael Barzalona, Salem bin Ghadayer 

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Winner: Desert Fire, Hector Crouch, Saeed bin Suroor 

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Winner: Al Tariq, Pat Dobbs, Doug Watsons 

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COMPANY PROFILE

Company name: Blah

Started: 2018

Founder: Aliyah Al Abbar and Hend Al Marri

Based: Dubai

Industry: Technology and talent management

Initial investment: Dh20,000

Investors: Self-funded

Total customers: 40

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Updated: August 08, 2023, 5:38 AM