Anti-piracy plan risks worsening Somalia's plight



Pirate attacks are a little less frequent than last year, but the European Union has no intention of easing the pressure on Somali outlaws who prowl the Horn of Africa coast and the Indian Ocean.

On Friday, the EU agreed to expand its mission against Somali pirates to include attacks on land targets. The 10 EU warships operating off the Horn are now authorised to strike moored vessels and fuel dumps in "coastal territory and internal waters".

As a tactic to fight piracy, the EU's extension of Operation Atalanta makes a degree of sense. Pirate bases on land will, initially at least, offer little resistance to the EU forces, which will likely be helicopter-borne. The pirates' small boats are no match for the EU's heavily equipped warships; certainly, pirate groups can expect heavy material losses and many casualties.

However, this mission creep will be risky for the Europeans. Attacks without a follow-up plan, as many interventions in the Middle East and Africa have shown in the past, ultimately fail because they leave behind further instability. The pirates, like the Shabaab militia (and the line between the two is now blurred), will be almost impossible to eradicate in the absence of a political solution that helps to build a stable government in the coastal area, and in all of Somalia.

Statistics that have been collected suggest that pirates in Somalia make more money, and have higher life expectancy, than the country's farmers. Pirates claimed $160 million (Dh588 million) in ransoms in 2011. In impoverished, insecure Somalia, turning to piracy could be seen as a rational decision.

Further, any EU military successes will be overshadowed by a downed helicopter or a demolished house full of children. Afghanistan and Iraq demonstrate how quickly such missions become military, and public relations, disasters.

The only real solution for piracy requires civil institutions to suppress crime and create legitimate opportunities. That is of course easier said than done, but by working with the country's transitional government, the EU and others can help build those institutions, starting with a well-run army and police forces.

The EU mission faces a long haul to protect shipping in the area, including World Food Programme ships that deliver aid to displaced Somalis. But widening hostilities could hurt those efforts more than help them.

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The specs: 2018 Chevrolet Equinox

Price, base / as tested: Dh76,900 / Dh110,900

Engine: 2.0L, turbocharged in-line four-cylinder

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Power: 252hp @ 5,500rpm

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Investors/Investment amount: $125 million. Major investors include Starz/Lionsgate, State Street, SEQ and Delta Partners

Cryopreservation: A timeline
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The low down on MPS

What is myofascial pain syndrome?

Myofascial pain syndrome refers to pain and inflammation in the body’s soft tissue. MPS is a chronic condition that affects the fascia (­connective tissue that covers the muscles, which develops knots, also known as trigger points).

What are trigger points?

Trigger points are irritable knots in the soft ­tissue that covers muscle tissue. Through injury or overuse, muscle fibres contract as a reactive and protective measure, creating tension in the form of hard and, palpable nodules. Overuse and ­sustained posture are the main culprits in developing ­trigger points.

What is myofascial or trigger-point release?

Releasing these nodules requires a hands-on technique that involves applying gentle ­sustained pressure to release muscular shortness and tightness. This eliminates restrictions in ­connective tissue in orderto restore motion and alleviate pain. ­Therapy balls have proven effective at causing enough commotion in the tissue, prompting the release of these hard knots.

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Date of Birth: April 25, 1993
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Price, base: Dh306,500
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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.”