President Bashar Al Assad's amnesty is not all that it may at first seem. AP/Hassan Ammar
President Bashar Al Assad's amnesty is not all that it may at first seem. AP/Hassan Ammar

Assad's latest offer is no amnesty at all



After seven long and bloody years of bitter civil war that has cost the lives of more than half a million people and driven millions more into exile, the offer by the Syrian government of an amnesty for military deserters and those who refused to join the armed forces sounds like a potential step towards a broader reconciliation. But there is a catch. Anyone tempted by the offer would be well advised to read the small print, which makes it clear that President Bashar Al Assad’s forgiveness comes at a steep price – two years in the uniform of the very army they took a stand against.

The offer also falls short of extending an olive branch to refugees who fought for the rebels. Clearly, this is no exercise in reconciliation. One does not have to be a cynic to conclude that the offer of amnesty is more about swelling the ranks of Mr Al Assad’s army, depleted and exhausted after a long and drawn-out conflict, and now facing the prospect of a final showdown with massed opposition forces in Idlib.

Uppermost in the minds of many contemplating the offer will also be the question: can Mr Al Assad be trusted? This year, tens of thousands of refugees are reported to have already returned to Syria from Lebanon and Turkey, despite widespread fears among aid groups that they will face vetting, possible detention and conscription into the armed forces. To date, their fate is unclear, but there have been reports of arrests among their number.

As of this month, there are 5.6 million Syrians registered with the UN Refugee Agency, placing an increasingly untenable burden on neighbouring states, including Turkey, Iraq, Jordan, Egypt and Lebanon. Hundreds of thousands more have made the perilous journey into Europe. Many have died trying. All want to see an end to Syria’s brutal conflict and the vast majority of refugees live for the moment when they can return to their country and start to rebuild their homes and their lives. But for the tens of thousands of military-age Syrians who fled the country rather than take up arms against their fellow citizens, the offer of an amnesty from the Assad regime is almost certainly not that moment.

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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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She loves to explore new destinations and lives by her motto of being a voice in the world, and not an echo.

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