Kuwait City // Yemen’s peace talks appeared to have reached an impasse on Sunday after the government pulled out of direct negotiations with the Houthi delegation and the rebels refused to meet the UN mediator.
The government suspended its participation in direct talks citing a lack of progrees on Saturday.
A source close to the government delegation said the talks had reached a delicate stage after “the rebels backtracked to the starting point”, adding “that has complicated the situation”.
The government official said the rebels “went back on their word” to discuss substantive issues in three joint working groups formed on Wednesday when the direct talks resumed.
In a further setback to the talks, Houthi representatives on Sunday refused to attend a meeting with UN Yemen envoy Ismail Ould Cheikh Ahmed, the Yemen prime minister’s office said.
As a result, meetings of joint political and security committees formed last week were postponed indefinitely, Al Arabiya television reported.
The rebels and their allies are demanding the formation of a consensus transitional government before discussing their compliance with the UN Security Council Resolution 2216, which requires them to surrender arms and withdraw from territories they occupied in 2014.
The rebels have also demanded the withdrawal of a small US force operating in the south of the country against Al Qaeda militants.
On Thursday, Mr Cheikh Ahmed said the two sides had begun discussing major political and security issues in face-to-face negotiations, raising hopes of bringing an end to 13 months of devastating war.
A ceasefire went into force on April 11, ahead of the talks that began on April 21, but both sides have accused the other of violations. The government earlier suspended direct talks with rebels on May 1 in response to a Houthi attack on neutral military base in Amran province, north of the rebel-held capital Sanaa, the day before.
There has been mounting international pressure to end Yemen’s war, which the United Nations estimates has killed more than 6,400 people and displaced 2.8 million since March last year. The conflict has created a humanitarian crisis with shortages of food, medicines and fuel in many areas, while extremist groups such as Al Qaeda and ISIL have taken advantage of the chaos to seize territory and attack Yemeni officials.
Yemeni forces and the Saudi-led coalition backing the government have pushed the extremists from several areas in southern Yemen in recent weeks, including the port city of Mukalla, the capital of Haramawt province that was held by Al Qaeda militants.
On Sunday, an aircraft carrying 20 tonnes of medicines and medical accessories landed in Mukalla as part of the UAE’s ongoing efforts to assist Yemenis affected by the war.
“The plane chartered by the Emirates Red Crescent is the first to land at Mukalla airport since it closed more than a year ago after Al Qaeda entered the city,” airport director Anis Abdel Kader said.
He said work was under way to make the airport operational again, with UAE help, so it can be “used as quickly as possible for commercial flights”.
Special forces from the UAE, a member of the Saudi-led coalition, played a major role in retaking the city.
On Friday, the United States said that “a very small number” of American soldiers were also involved in the operation, acknowledging for the first time that US troops had deployed in Yemen.
* Agence France-Presse with additional reporting from Reuters
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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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