In spite of Russia's claims that its forces had killed him in 2017, apparent footage of Abu Bakr Al Baghdadi emerged on Monday. This is a major development, proving that the ISIS leader is alive, and that his terrorist organisation still poses a significant threat. Al Baghdadi has not been seen in public since 2014, when he proclaimed ISIS's so-called caliphate from Mosul's Al Nuri Mosque. Back then, ISIS was growing in size and prominence, seizing land across Iraq and Syria. Now, the terror group is militarily defeated – and increasingly desperate. The self-proclaimed caliph has aged visibly since 2014, his dyed beard revealing patches of grey. Likewise, ISIS's strategy of territorial conquest has not aged well. The group lost all of its Iraqi territory in 2017 and its last redoubt, Baghouz in Syria, fell in March.
Although weakened in the region, the group’s ideas live on in pockets across the globe. In the video, Al Baghdadi accepted oaths of allegiance from local groups in Afghanistan, and in Mali and Burkina Faso. Mention of the latter two nations forms part of a worrying trend of rising extremist violence in West Africa. On the day that Baghouz fell, for instance, the Islamic State West Africa Province killed 23 soldiers in Chad.
Although Al Baghdadi acknowledged the demise of ISIS as a proto-state, he also claimed the Easter Sunday bombings in Sri Lanka, which left 253 people dead and 500 injured, as revenge for the fall of Baghouz. These words speak to the enduring threat of ISIS, and the contemporary nature of the footage. By associating ISIS with such brutal attacks, Al Baghdadi has performed a public show of strength, at a time when the group is at its frailest. But his statements also demonstrate how far the group has regressed, giving up on its dreams of world-domination and reverting back to an Al Qaeda-style terror network. The international community might have routed the organisation on the battlefield, but the same dedication must now be channelled into an altogether different battle: a struggle not for land, but against a poisonous ideology.
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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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