The US is placing visa bans on officials 'responsible for, or complicit in, undermining resolution of the crisis in Tigray'. Reuters
The US is placing visa bans on officials 'responsible for, or complicit in, undermining resolution of the crisis in Tigray'. Reuters
The US is placing visa bans on officials 'responsible for, or complicit in, undermining resolution of the crisis in Tigray'. Reuters
The US is placing visa bans on officials 'responsible for, or complicit in, undermining resolution of the crisis in Tigray'. Reuters

US sanctions Ethiopian and Eritrean officials over Tigray conflict


Bryant Harris
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The US has announced sanctions on Ethiopian and Eritrean officials over the civil war in the Tigray region.

Secretary of State Antony Blinken said the US is placing visa bans on officials “responsible for, or complicit in, undermining resolution of the crisis in Tigray".

The sanctions target Ethiopian and Eritrean government officials and members of the security forces as well as “Amhara regional and irregular forces and members of the Tigray People’s Liberation Front”. Visa bans may also be placed on immediate family members of those sanctioned.

“This includes those who have conducted wrongful violence or other abuses against people in the Tigray region of Ethiopia as well as those who have hindered access of humanitarian assistance to those in the region,” Mr Blinken said.

“Should those responsible for undermining a resolution of the crisis in Tigray fail to reverse course, they should anticipate further actions from the United States and the international community. We call on other governments to join us in taking these actions.”

He also announced that Washington has “imposed wide-ranging restrictions on economic and security assistance to Ethiopia and will bring our defence trade control policy in line with them” while vowing to continue to provide humanitarian support.

The US has sent more than $300 million in aid to Tigray since the conflict broke out in November when Ethiopian and Eritrean forces entered the region with Amhara militias to conduct an offensive against the Tigray People’s Liberation Front.

The conflict has displaced more than two million people and left another 4.5 million in need of humanitarian assistance.

Ethiopia has blocked the UN from providing humanitarian aid to Tigray, enacted telephone and internet blackouts, and restricted journalists' access to the region.

Despite the telecoms and media blackout, there have been multiple reports of Ethiopian and Eritrean forces committing crimes against civilians, including sexual assault.

Mr Blinken described events in Tigray “ethnic cleansing”.

Although Eritrea vowed to pull its forces out of the region in March, Asmara has yet to do so. For this reason, Congress has pushed for sanctions on Ethiopian and Eritrean officials.

The US Senate unanimously passed a non-binding resolution last week calling for an immediate ceasefire in Tigray, as well as the withdrawal of Eritrean troops.

The Tigray Centre for Information and Communication hired the consulting firm Von Batten-Montague-York to lobby Congress to pass the resolution and urge the administration of President Joe Biden to levy human rights sanctions.

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.”

Tamkeen's offering
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The years Ramadan fell in May

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1921

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Global state-owned investor ranking by size

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The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5