A Houthi militant stands guard in front of a building damaged during recent clashes near the presidential palace in Sanaa on January 20. Hani Mohammed / AP Photo
A Houthi militant stands guard in front of a building damaged during recent clashes near the presidential palace in Sanaa on January 20. Hani Mohammed / AP Photo

Yemen on the brink as president fights to survive Houthi power bid



SANAA // Houthi militiamen on Tuesday shelled the residence of Yemen’s president, Abdrabu Mansur Hadi, and occupied the presidential palace after clashes with guards.

The moves came after a ceasefire declared on Monday between government forces and the Houthis broke down amid the greatest political unrest in Yemen since Arab Spring protests in 2011.

With the attack on his residence subsiding late in the evening, Mr Hadi was left negotiating for his political survival, even after previous talks failed to resolve a bitter impasse over the country’s new constitution.

“It’s a new era in Yemen and presidents will continue to fall until they understand the role [Houthi leader AbdulMalik] Al Houthi must have,” said Abdullah Shaban, a Houthi chief.

On Monday, Houthi militiamen expanded their control over the capital to areas around the presidential palace following clashes with government troops. During the ceasefire, they resupplied and set up additional checkpoints throughout Sanna. On Tuesday morning, the city streets were quiet, but tense, with most residents remaining indoors.

Yet, by the late afternoon, negotiations with the government collapsed and the Houthis resumed attacks, quickly entering the presidential palace and shelling Mr Hadi’s residence, where the president was said to be holed up.

While the Houthis have not formally asked Mr Hadi to relinquish power, the attacks — which government troops were unable to counter — were meant to assert their position as the true powerholders in Yemen.

The Houthis emerged as the dominant force in Yemeni politics after seizing most of Sanaa last September.

The group’s leader, AbdulMalik Al Houthi, is believed to prefer ruling indirectly, by exerting influence rather than holding political office, seeking to emulate a leadership style similar to that of Iran’s Ayatollah Ali Khamenei.

Following the Houthis’ initial takeover of the capital, Mr Hadi stayed on as president, but the group made frequent public displays of their power.

In October, they rejected Mr Hadi’s choice for a new prime minister in favour of an independent candidate agreed upon by all sides.

The group also created armed “resistance committees” that were stationed at the central bank, transportation hubs, and key government ministries. Loyalists were appointed to senior government positions, including as advisers to Mr Hadi.

The breaking point appeared to come last week when the government moved forward with a draft constitution that saw Yemen divided into a six-region federation.

The Houthis want the country to become a two-region federation and accused Mr Hadi of imposing his own agenda on the country.

Last Saturday, they abducted Mr Hadi's chief of staff, Ahmed Awad bin Mubarak, a key backer of the six-region constitution. After Mr Hadi refused to give into their demands and oil production was stopped in a key province to protest the kidnapping, Houthi militiamen poured into Sanaa and battled government forces.

Along with disagreements over the constitution, the Houthis also fell out with Mr Hadi over his partnership with foreign powers such as the United States.

“Yemen needs a ruler that puts Yemen first and is not affiliated with foreign powers,” said Zakaria Al Shami, a Houthi leader who was appointed deputy commander in chief of Yemen’s Armed Forces one month ago.

“It needs an army that is independent and works for its people. Any candidate for power who violates these vital points will be ousted.”

Mr Hadi’s government worked with the US to counter Al Qaeda in the Arabian Peninsula (AQAP), which has plotted to carry out attacks on foreign targets from bases in Yemen’s south and east.

“President Hadi’s actions this week were the result of advice he took from regional powers who don’t want the best for Yemen. These regional countries seek to damage Yemen completely,” said Mr Al Shami.

While the Houthis have battled Al Qaeda militants as they expanded into provinces south of Sanaa, the group claims to see the US as the greater enemy.

“Six US surveillance planes were flying above Sanaa while forces clashed. Allowing this is one reason president Hadi must leave power,” said Osama Sari, a senior Houthi official.

As the Houthis launched their rapid offensive last year, some of Mr Hadi's advisers alleged they were aided by former president Ali Abdullah Saleh, who was ousted following mass demonstrations in 2011. Mr Saleh was said to retain influence among some military commanders who chose not to confront the Houthis.

There are suspicions that Mr Saleh may be plotting a return to power, either for himself or his son. However, Houthi officials said that while Mr Saleh is a political ally, their agenda does not involve him.

For the moment, Yemen does not appear to have any political candidates who are sufficiently unifying to stabilise the country.

Elections are scheduled this year for the presidency and house of representatives, but the Houthis are likely to try and seek influence over candidates from behind the scenes.

Members of established political parties in Sanna are now concerned that unchecked Houthi power could spell the end for democracy in Yemen.

Abdullah Noman, Secretary General of the Nasserist Unionist People’s Organisation said the government is to blame for the Houthi success.

“Houthis are in control of everything in Yemen and that is because no one stood up to them. They will lead the country into chaos,” said Mr Noman.

foreign.desk@thenational.ae

* with additional reporting by Associated Press

How to avoid crypto fraud
  • Use unique usernames and passwords while enabling multi-factor authentication.
  • Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
  • Avoid suspicious social media ads promoting fraudulent schemes.
  • Only invest in crypto projects that you fully understand.
  • Critically assess whether a project’s promises or returns seem too good to be true.
  • Only use reputable platforms that have a track record of strong regulatory compliance.
  • Store funds in hardware wallets as opposed to online exchanges.
COMPANY PROFILE

Company: Bidzi

● Started: 2024

● Founders: Akshay Dosaj and Asif Rashid

● Based: Dubai, UAE

● Industry: M&A

● Funding size: Bootstrapped

● No of employees: Nine

ESSENTIALS

The flights 
Emirates, Etihad and Swiss fly direct from the UAE to Zurich from Dh2,855 return, including taxes.
 

The chalet
Chalet N is currently open in winter only, between now and April 21. During the ski season, starting on December 11, a week’s rental costs from €210,000 (Dh898,431) per week for the whole property, which has 22 beds in total, across six suites, three double rooms and a children’s suite. The price includes all scheduled meals, a week’s ski pass, Wi-Fi, parking, transfers between Munich, Innsbruck or Zurich airports and one 50-minute massage per person. Private ski lessons cost from €360 (Dh1,541) per day. Halal food is available on request.

Stree

Producer: Maddock Films, Jio Movies
Director: Amar Kaushik
Cast: Rajkummar Rao, Shraddha Kapoor, Pankaj Tripathi, Aparshakti Khurana, Abhishek Banerjee
Rating: 3.5

Other workplace saving schemes
  • The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
  • Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
  • National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
  • In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
  • Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.

Director: Laxman Utekar

Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna

Rating: 1/5

COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
Guide to intelligent investing
Investing success often hinges on discipline and perspective. As markets fluctuate, remember these guiding principles:
  • Stay invested: Time in the market, not timing the market, is critical to long-term gains.
  • Rational thinking: Breathe and avoid emotional decision-making; let logic and planning guide your actions.
  • Strategic patience: Understand why you’re investing and allow time for your strategies to unfold.
 
 
THE LIGHT

Director: Tom Tykwer

Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger

Rating: 3/5

Vidaamuyarchi

Director: Magizh Thirumeni

Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra

Rating: 4/5

 

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.”