Forces loyal to the Yemeni government stand on the back an armed vehicle as they take part in an operation to drive Al Qaeda fighters out of Zinjibar, the capital of Anyan province, on April 23, 2016. Saleh Al Obeidi/AFP Photo
Forces loyal to the Yemeni government stand on the back an armed vehicle as they take part in an operation to drive Al Qaeda fighters out of Zinjibar, the capital of Anyan province, on April 23, 2016.Show more

World

Saudi Arabia intercepts missile from Yemen

The missile, which was intercepted on Monday night, was the second to be launched from Yemen since UN-brokered peace talks began in Kuwait on April 21.

RIYADH // Saudi Arabia has intercepted a ballistic missile fired from Yemen, says the Riyadh-led military coalition backing the Yemeni government.

The missile, which was intercepted on Monday night, was the second to be launched from Yemen since United Nations-brokered peace talks began in Kuwait on April 21 between Houthi rebels and the government of president Abdrabu Mansur Hadi.

The missile launches were aimed at sabotaging “efforts of the international community to make the peace negotiations a success”, said the Saudi-led coalition, which is made up of mostly Arab states.

It warned that it could retaliate if such strikes continue.

Saudi Arabia has deployed Patriot missile batteries to counter tactical ballistic missiles which have been occasionally fired into its territory during the war.

The coalition, in which the UAE plays a leading role, launched air strikes in Yemen last March in support of pro-government forces battling the Iran-backed Houthis who had seized much of the country.

Since then, the coalition has provided other military support to pro-government forces, including training and armoured vehicles.

Fighting has continued despite a ceasefire that paved the way for the talks in Kuwait.

On Tuesday, loyalist military sources said renewed clashes between pro-government forces and the Houthis had killed at least 38 people during the past 24 hours.

Battles raged in Bayhan, on the border between Shabwa province in the south and Marib province in the east.

There was also fighting in Sarwah, an oil-rich area west of Marib city, the sources said. Marib city is the capital of Marib province.

At least 23 rebels and 15 soldiers were killed in both areas.

Bayhan is the only part of Shabwa province still controlled by the Houthis, who on Tuesday retook positions seized by loyalists during the past two days.

Forty-eight fighters were killed in fierce fighting in Bayhan on Sunday, a senior military officer said.

Meanwhile, media rights watchdog Reporters Without Borders said Houthi “sniper fire” killed Yemeni journalist Abdullah Azizan while he was covering the clashes in Bayhan on Sunday.

Azizan worked for the local marebpress.net news website.

* Agence France-Presse

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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.”