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Yemen has been ranked the least peaceful country in the world for the first time because of Houthi attacks on ships in the Red Sea.
The 2024 Global Peace Index (GPI), published on Monday by the Institute for Economics and Peace (IEP) think tank, reveals the Houthis' missile and drone assaults on ships linked to Israel using maritime routes through the Red Sea has intensified instability in the region.
Meanwhile, the UAE has made the biggest rise towards the definition of peace of any nation in this year’s GPI, moving 31 places thanks to its diplomatic relations with its neighbours and substantial increase in UN peacekeeping funding.
It is now ranked 53rd out of 163 countries.
“The primary driver of the improvement in peacefulness was a move towards better neighbouring countries relations,” it says.
“The UAE improved its diplomatic relations and commercial ties with Iran and Turkey and has strengthened diplomatic relations more broadly across the region and into South Asia.”
The report indicated the conflict in Gaza could spread to involve Yemen and other countries, Steve Killelea, founder and executive chairman of the IEP, told The National.
He said the world was at a crossroads and without concerted effort, there is a risk of a surge in major conflicts.
“What is most concerning is if the Gaza conflict spreads into the region then it could engulf countries like Egypt, Lebanon, Yemen, Iran and possibly Jordan and that would have a substantial impact on the region, and from there could propagate further on,” he said.
“What truly strikes me is that the world is at a confliction point and without concerted effort it could get much worse. For example, there are more countries in conflicts than at any stage since the Second World War, 56 countries. We have seen that 97 countries have deteriorated on the GPI, the most since its inception in 2008.”
Yemen has replaced Afghanistan as the world's least peaceful country. It is followed by Sudan, South Sudan, Afghanistan and Ukraine.
This is the first year Yemen has been in the number one position, with the country having moved up 24 places since 2008.
“Peacefulness in Yemen fell over the past year, owing to deteriorations on the violent demonstrations, political instability and neighbouring countries relations indicators,” the GPI report said.
“Yemen's internal political instability has worsened in the past year due to deteriorating living conditions and rising social unrest. The internal strife in Yemen has been further exacerbated by regional tensions stemming from the Israel-Hamas war in Gaza.
“The Houthis' missile and drone assaults against Israeli targets intensified instability in the region by threatening critical maritime routes through the Red Sea and Gulf of Aden.
“In response to these attacks the US and UK have intensified their military involvement in Yemen by launching missile, drone and air strikes against the group's sites in northern Yemen since January 2024. This escalation represents a significant externalisation of Yemen's civil conflict.”
The report shows there were 160,000 conflict deaths this year, the second highest since the Rwanda genocide in 1994, and three quarters have come from Ukraine and Gaza.
“We are finding that conflicts are becoming more internationalised, with more countries becoming involved. There are 92 involved in conflicts beyond their borders. This also makes conflicts harder to solve,” Mr Killelea told The National.
“It’s been 80 years since the end of the Second World War and the current crises underscore the urgency for world leaders to commit to investing in resolving these conflicts.”
Mr Killelea said with conflicts getting worse, refugee numbers would continue to rise and affect the global economy.
“I think what is needed is for governments to try to proactively solve many of the smaller conflicts before they erupt into bigger conflicts,” he said.
“As an offshoot we can see the number of refugees are climbing. They are now up 110 million. We now have 16 countries hosting more than half a million refugees each.
“Along with this comes an economic impact. As conflicts flow further, there will be further flows of refugees which will impact a whole range of other countries. There will be lot more refugees in the Middle East.”
The global economic impact of violence increased to $19.1 trillion last year, representing 13.5 per cent of worldwide GDP.
The report warns a further broadening of the conflict would severely impact the global economy, potentially triggering a global recession.
Iceland remains the most peaceful country, a position it has held since 2008, followed by Ireland, Austria, New Zealand, and Singapore – a new entrant in the top five.
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Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
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UAE currency: the story behind the money in your pockets
Will the pound fall to parity with the dollar?
The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.
Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.
New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.
“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.
The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.
The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.
Bloomberg
How much do leading UAE’s UK curriculum schools charge for Year 6?
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- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
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