Indian Prime Minister Narendra Modi faces public pressure to respond to a terrorist attack in Kashmir blamed on Pakistan. Reuters
Indian Prime Minister Narendra Modi faces public pressure to respond to a terrorist attack in Kashmir blamed on Pakistan. Reuters

Kashmir attack: India to curtail river flows into Pakistan



Prime Minister Narendra Modi’s government plans to divert water from Pakistan as India continues to look for non-military ways to punish its neighbour for a deadly terrorist attack in Kashmir.

India on Thursday announced projects that will stop its share of water in the Indus river basin from flowing into Pakistan, Water Minister Nitin Gadkari said in a series of tweets. The projects will shift waters from the Ravi and Beas rivers for use in the states of Punjab and Jammu and Kashmir.

“By diverting the water, India is sending a clear message to Pakistan,” said Uttam Sinha, a senior researcher at the Institute for Defence Studies and Analyses in New Delhi. The step will prevent large quantities of India’s share that currently flows freely to the neighbor, he said.

The decision comes after 40 paramilitary soldiers in Kashmir were killed in an attack last week claimed by Jaish-e-Mohammed, a Pakistan-based terror group. It was the worst strike since Mr Modi came to power in 2014 and comes just months before the India's general election. New Delhi has blamed Islamabad for the attack, although Pakistan’s government has denied any role.

India, which threatened to review the 1960 Indus Waters Treaty after a previous attack in Kashmir, is desperate to find ways to pressure Islamabad short of military strikes. So far, it has moved to isolate Pakistan diplomatically by scrapping the most favoured nation status it granted and slapping 200 per cent duties on imports.

New Delhi and the US blame Pakistan for harbouring terrorists seeking to destabilise its neighbours. But with both the South Asian nations armed with nuclear weapons, the fear of military escalation limits India’s response.

On Thursday, Mr Gadkari said work on the stalled Shahpur-Kandi dam had already begun. Along with a reservoir project using water from the Ujh, the Ravi’s main tributary in Kashmir, India will also link the Ravi and Beas rivers to divert their waters to other basin states, he said.

The projects are in accordance with the Indus Waters Treaty on sharing waters of the river basin, a senior water ministry official said. The projects, which will take between one-and-a-half to six years for completion, will stop water that is rightfully India’s share, the official said.

The treaty covers the water distribution and sharing rights of six rivers in the basin. Pakistan was allotted three western rivers – the Indus, Jhelum and Chenab – for exclusive use, while India retained the Sutlej, Beas and Ravi that flow eastward. India could also use some of the water from the western rivers for irrigation purposes even though it could not store any water or build any structure for storage.

The six rivers that form the Indus river basin have been a potential point of conflict between the neighbours despite the five-decade-old treaty. India had in 2016 said it would review the treaty after 19 Indian soldiers were killed in Kashmir, a disputed region which is claimed in full by both countries. Pakistan has repeatedly complained about India’s plans to build dams on the rivers. Yet annual talks have remained relatively unaffected in spite of two wars fought since the treaty was put in place.

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

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.”

UAE currency: the story behind the money in your pockets
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Creator: Mike White

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UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
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  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
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Rating: 4/5

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From: Giza Governorate, Egypt

Family: A daughter, two sons and wife

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Runner up favourite tree: Frankincense 

Favourite place on Sir Bani Yas Island: “I love all of Sir Bani Yas. Every spot of Sir Bani Yas, I love it.”

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Director: Jared Hess

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In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

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Jeff Buckley: From Hallelujah To The Last Goodbye
By Dave Lory with Jim Irvin

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