Abu Dhabi // A “national salvation” government announced by Yemen’s rebel alliance is unlikely to gain international legitimacy and will undermine the prospects of negotiations, observers said on Monday.
The Iran-backed alliance of Houthi rebels and military and political forces loyal to former president Ali Abdullah Saleh formed a “supreme political council” in July that was described as unconstitutional by the United Nations. The decision to set up the council in part led to the collapse of peace talks in August.
On Sunday that council appointed Abdel Aziz bin Habtoor, the former Aden governor, to form a government of “national salvation” aimed at rivalling the internationally-recognised administration of president Abdrabu Mansur Hadi, which is based in Aden.
The formation of a parallel rebel government in the north of the country comes after the Hadi government said it would move Yemen’s central bank from Sanaa to Aden.
“The move to form a government is the latest in a series of tit-for-tat escalatory steps taken by both sides as a result of the collapse of peace talks in Kuwait,” said April Longley Alley, the International Crisis Group’s Yemen analyst. “The decision is clearly unhelpful for the prospects of a compromise settlement.”
The UN special envoy to Yemen, Ismail Ould Cheikh Ahmed, is in Riyadh for consultations on the stalled talks. There had been some optimism around a plan presented privately by the US secretary of state John Kerry to other members of the so-called “quad” of countries that back Mr Hadi – Saudi Arabia, the UAE, the United States and Britain.
The Houthi-Saleh delegation to the Kuwait talks had balked at a plan by Mr Ahmed based on a UN Security Council resolution that would have the rebels hand over heavy weapons and withdraw from territory ahead of the formation of a unity government. Mr Kerry’s plan would see the security measures and the political process take place simultaneously.
“At this point, there is a reasonable compromise solution on the table through the quad initiative ... This settlement could provide wins to both sides and end an increasingly devastating war,” Ms Alley said. “But, its shelf-life is limited, and could be overcome by the lack of diplomatic momentum and by events on the ground.”
As the Hadi government initiates an economic siege of the rebel-controlled north, and the rebel alliance attempts to bolster their claim to legitimacy, fighting has increased and the geographic split has widened.
“Now they’re going to appoint ministers, and they are going to take that government to the parliament for a vote a confidence, and try to take more steps toward having a superficial legitimacy within their territory,” said Mustapha Noman, a former deputy foreign minister of Yemen. “It’s just creating more of a mess rather than helping.”
The Houthi revolutionary councils that have acted as de facto administrators in territory outside government control could be dissolved and new councils with greater representation by Mr Saleh’s General People’s Congress party formed as a result of the move, Mr Noman said.
Mr Bin Habtoor, the man appointed to form the new rebel government, was chosen by Mr Hadi as governor of Aden in December 2014 – after the Houthis had taken Sanaa but before the Saudi-led coalition intervened in the war in late March of last year.
“There is a YouTube video making the rounds of an interview from March 2015 where [Bin Habtoor] said that there must be a foreign intervention in Yemen against the Houthis,” Mr Noman said.
After the Houthis were defeated in Aden by coalition and local forces last year, Mr Bin Habtoor was dismissed from his post and he moved to Sanaa. The fact that he does not have a power base in Sanaa, and is a southerner who can help give the appearance of a national government, were likely why he was chosen, Mr Noman said. “The so-called ‘chairman’ of the council is a northerner so they could not appoint another northerner in the post,” he added.
As fighting continued on Monday, the United Nations humanitarian operations chief visited rebel-controlled areas of Yemen, including the port of Hodeidah.
Stephen O’Brien, undersecretary-general for humanitarian affairs and emergency relief coordinator, was shown infrastructure damaged by air strikes and met aid workers in the port, the biggest in northern Yemen.
tkhan@thenational.ae
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Other ways to buy used products in the UAE
UAE insurance firm Al Wathba National Insurance Company (AWNIC) last year launched an e-commerce website with a facility enabling users to buy car wrecks.
Bidders and potential buyers register on the online salvage car auction portal to view vehicles, review condition reports, or arrange physical surveys, and then start bidding for motors they plan to restore or harvest for parts.
Physical salvage car auctions are a common method for insurers around the world to move on heavily damaged vehicles, but AWNIC is one of the few UAE insurers to offer such services online.
For cars and less sizeable items such as bicycles and furniture, Dubizzle is arguably the best-known marketplace for pre-loved.
Founded in 2005, in recent years it has been joined by a plethora of Facebook community pages for shifting used goods, including Abu Dhabi Marketplace, Flea Market UAE and Arabian Ranches Souq Market while sites such as The Luxury Closet and Riot deal largely in second-hand fashion.
At the high-end of the pre-used spectrum, resellers such as Timepiece360.ae, WatchBox Middle East and Watches Market Dubai deal in authenticated second-hand luxury timepieces from brands such as Rolex, Hublot and Tag Heuer, with a warranty.
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Mubalada World Tennis Championship 2018 schedule
Thursday December 27
Men's quarter-finals
Kevin Anderson v Hyeon Chung 4pm
Dominic Thiem v Karen Khachanov 6pm
Women's exhibition
Serena Williams v Venus Williams 8pm
Friday December 28
5th place play-off 3pm
Men's semi-finals
Rafael Nadal v Anderson/Chung 5pm
Novak Djokovic v Thiem/Khachanov 7pm
Saturday December 29
3rd place play-off 5pm
Men's final 7pm
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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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Tax authority targets shisha levy evasion
The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.
Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".
The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.
He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.
"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.
As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.
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.”
Killing of Qassem Suleimani
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