DUBAI // Terrorism experts yesterday said it was highly unlikely a militant group was behind damage sustained by a Japanese supertanker in the Strait of Hormuz.
The little-known group Abdullah Azzam Brigades claimed responsibility for the attack on M. Star in a statement published online yesterday.
The authenticity of the claim could not be independently verified but it appeared on websites that carry messages of militant groups.
Mustafa Alani, a senior adviser at the Gulf Research Centre in Dubai, said he believed a delay in investigations, plus the unclear cause of the damage, had prompted the group to claim responsibility.
"Somebody took advantage of the situation and put a statement online," he said. "The statement is not credible as it claims a suicide bomber infiltrated the ship, while the damage was caused by an external factor.
"Abdullah Azzam is the father of the Jihad movement in Afghanistan. His name is frequently used by different groups ? This group is not an actual one."
The oil tanker M. Star, carrying 200,000 barrels of oil from Al Ruwais to Tokyo, suffered damage to its starboard near the stern, and blown out windows and buckled doors at deck level, last Wednesday. Experts and officials ruled out speculation a freak wave had caused the damage and said the most likely cause was a mine left over from the Iran-Iraq War.
Alex Vatanka, editor of Jane's Islamic Affairs Analyst in Washington, said: "Based on the evidence we have so far, I do not think the factors are there to make the claims of this group a reality."
While there are several groups operating under the Abdullah Azzam name - some of whom are linked to al Qa'eda - Mr Vatanka said none of these were known to be operating in the Gulf.
"The last time we heard of a group operating under this name was in southern Lebanon in late 2009, when they were firing rockets into Israel," he said.
"A group with a similar name - Shahid [Martyr] of Abdullah al Azzam - claims to be operating in Pakistan ? but we have no evidence of a group by this name having operated in the waters of the Gulf.
"The only maritime terrorism the broader region has experienced has been off the coast of Yemen and the security situation in Yemen is totally different and notoriously unstable. That is not the case with the Gulf states or Iran, so it would be difficult for militant terrorist groups to operate in the Gulf waters," he said. Mr Vatanka also said the delay in the announcement indicated the group might be "late-comers", taking advantage of a situation.
"There are smaller terrorist groups which seek to punch above their weight by claiming responsibility for attacks when they might not have been responsible."
If the group's claims were true, it heralded a new era in Gulf maritime terrorism, he said.
Lt John Fage, spokesman for the US Navy's Bahrain-based Fifth Fleet, said anything beyond facts provided by the shipping line could only be speculation.
He added the US navy, which had carried out diving operations to assess the damage to M. Star, was "standing by if the shipping line requests further assistance".
"We will continue to inspect the cause and consider any possibility," said Kazumi Makamura, a spokeswoman for Mitsui OSK, the company that owns and operates the vessel.
wissa@thenational.ae
* Additional reporting from AP
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Kamindu Mendis bio
Full name: Pasqual Handi Kamindu Dilanka Mendis
Born: September 30, 1998
Age: 20 years and 26 days
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Major teams Sri Lanka's Under 19 team
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Bowling style: Right-arm off-spin and slow left-arm orthodox (that's right!)
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A timeline of the Historical Dictionary of the Arabic Language
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Director: Mahdi Fleifel
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Remembers a time when medicines from India were purchased per kilo
MATCH INFO
Championship play-offs, second legs:
Aston Villa 0
Middlesbrough 0
(Aston Villa advance 1-0 on aggregate)
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Sessegnon (47'), Odoi (66')
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Saturday, May 26, Wembley. Kick off 8pm (UAE)
The Sand Castle
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WHY%20AAYAN%20IS%20'PERFECT%20EXAMPLE'
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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.”