Pro-government forces patrol a street in Hawta, the capital of southern Lahj province which they retook from Al Qaeda, on April 24, 2016, as other loyalist fighters backed by the Saudi-led coalition launched an assault to retake the southern port city of Mukalla in Hadramawt province. Saleh Al Obeidi / AFP
Pro-government forces patrol a street in Hawta, the capital of southern Lahj province which they retook from Al Qaeda, on April 24, 2016, as other loyalist fighters backed by the Saudi-led coalition lShow more

Yemeni forces secure Mukalla after Al Qaeda rout



Aden // Pro-government forces set up checkpoints across Mukalla on Monday and said all Al Qaeda militants had been cleared from the city where they had been based in Yemen for more than a year.

The operation to free the strategic port of half a million people was part of a larger offensive against Al Qaeda in the Arabian Peninsula and ISIL affiliates. The extremists have taken territory across the south during fighting between Yemeni forces backed by the Saudi-led coalition and Houthi rebels and their allies loyal to former president Ali Abdullah Saleh.

The checkpoints were set up inside Mukalla and at its entrances, and a 6pm to 6am curfew on vehicles was established for at least one week, said Brigadier Awadh Salmeen , commander of the tribal Al Rayan Brigade, which took part in the assault.

Al Qaeda was estimated to have at least 1,000 fighters in the city, but they mostly fled towards Shabwa province and areas in Wadi Hadramawt, Brig Salmeen said, adding that the forces were pursuing the fighters. The Al Dhaba oil port in nearby Shihr was also secured by the coalition and Yemeni forces, he added.

The pro-government forces attacked Mukalla from three directions, Brig Salmeen said – Horshyat, Dawas and Shihr. “The [coalition] air strikes helped us to enter Mukalla, in addition to the coalition ground forces, and especially from the Emirates, and these two things helped us to recapture Mukalla in a matter of hours.”

On Monday, residents of the city expressed deep relief after a year of Al Qaeda control.

During the extremist group’s rule of Mukalla, where it looted US$100 million (Dh367m) from the central bank and made up to $2m per day in “taxes” at the port, it tried to gain support by abolishing income tax and exploiting feelings of resentment by southerners. But the extremists also imposed harsh interpretations of Islamic law, banning the chewing of qat leaf, a popular mild narcotic, and forcing women to wear niqab, as well as reportedly destroying tombs of Sufi saints.

Ammar Abdul Hamid, 23, a journalist in Mukalla with the state-run radio station, said he felt freedom when he saw the military vehicles enter the city.

“During the last year I did not feel freedom, and I used to be cautious of the Al Qaeda fighters, so I thank the Yemeni army and the coalition forces that participated in the liberation of Mukalla,” he said.

Salem Al Gifri, 40, a businessman, said Al Qaeda used to impose taxes on the traders for its extremist projects. “I cannot express my happiness enough today, but the best thing is that the Al Qaeda fighters will not come to me again and force me to give them money.”

Many residents celebrated by preparing sweets and bread and distributing them to soldiers in the city.

Raneem Bawazeer, 27, a broadcaster in Salamatk Radio in Mukalla, used to walk unveiled in the streets, but when Al Qaeda took over the city, they forced her to wear a veil, she said. “This morning I threw the veil and went to my work as before, I do not need veil anymore.”

The assault on Mukalla was launched after a ceasefire with the Houthis and Saleh’s forces was agreed and peace talks between the Yemeni government and the Iran-backed rebels got under way in Kuwait.

While there has been no sign of a breakthrough and disagreements over what the talks should address first, the UN envoy mediating the negotiations said “tangible progress” had been made on Monday. “Reports indicate real improvement in the situation which reflects the parties’ commitment to the cessation of hostilities,” Ismail Ould Cheikh Ahmed said in a statement after the fifth day of talks.

As the coalition begins to shift its priorities to extremist groups, consultations between the UAE and US officials over Washington’s assistance in fighting the Yemen-based branch of Al Qaeda, or Aqap, began in February, the New York Times reported.

The US considers Aqap to be the most serious terrorist threat to the United States, and officials have had growing concerns about the group exploiting the chaos of war to consolidate its grip on territory in southern Yemen. While US counter-terrorism personnel withdrew from Yemen last year due to the war, Aqap’s leader was killed in a US drone strike near Mukalla earlier this year and Aqap bases have also been targeted by the US, including one strike last month that killed more than 70 alleged militants.

UAE special operations forces had been training southern Yemeni tribal fighters in recent weeks in preparation for the offensive, and coalition and Yemeni forces moved into a position near the city last week. There were reports Al Qaeda had been preparing defences in anticipation of the assault, but after a barrage of air strikes overnight on Saturday and a ground offensive the next morning, the militants put up little resistance.

Government sources in the city told Reuters that most of the militants withdrew before the assault after negotiations with local tribal officials who hoped to save the city from prolonged fighting. However, the Saudi-led coalition spokesperson claimed on Monday that 800 Al Qaeda fighters were killed during the assault. No civilian toll was given.

The Mukalla operation was part of a broader offensive over the past week against extremist-held towns in the south. Coalition and Yemeni forces liberated Hawta, the capital of Lahj province, and on Saturday entered Abyan’s provincial capital Zinjibar. But an Al Qaeda car bomb in the city killed seven soldiers and wounded 14, and the force pulled back to the outskirts of the town, a Yemeni military official told AFP.

foreign.desk@thenational.ae

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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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