The Liberian-flagged oil tanker MV Sirius Star is shown at anchor on Nov 19 2008, off the coast of Somalia.
The Liberian-flagged oil tanker MV Sirius Star is shown at anchor on Nov 19 2008, off the coast of Somalia.

Tanker owners negotiate with pirates



The owners of the hijacked Saudi supertanker MV Sirius Star are in negotiations over a possible ransom payment, Saudi Arabia's foreign minister said today, as another three hijackings were reported and analysts pointed to the growing capabilities of pirates in the East African waters. "I know that the owners of the tanker, they are negotiating on the issue. We do not like to negotiate with either terrorists or hijackers. "But the owners of the tanker, they are the final arbiters of what happens there," Prince Saud al Faisal, who is visiting Italy, said in response to a question about a ransom. The hijacking of the MV Sirius Star, which is carrying a US$100 million (Dh367m) oil cargo, off the coast of Somalia this week, the latest in a scourge of attacks off the coast of East Africa, shows a growing sophistication in the well-funded pirate network, analysts said. "Although this is just the latest of a large spike in attacks off the east coast of Africa, this incident is significant on two counts," Pottengal Mukundan, the director of the International Maritime Bureau, said in a statement. "Firstly, this is the largest vessel to have been hijacked. Secondly, the distance from the shore would suggest a highly organised operation. This is not mere opportunism." The MV Sirius Star, the largest ship hijacked at 330 metres, was seized more than 800km off the Kenyan coast. The ship was anchored today off the Somali coast, where a small flotilla of western warships has failed to quash the piracy problem in one of the world's busiest shipping lanes. Andrew Mwangura, an analyst on piracy with the East African Seafarers Assistance Programme, said the assailants must have been highly organised and used several vessels in hijacking the MV Sirius Star. Analysts estimate about 1,000 pirates operate off the coast of Somalia. These modern day buccaneers travel in speedboats and are heavily armed with machine guns and grenade launchers. They launch their attacks from so-called "mother ships", which are usually fishing vessels that have previously been hijacked. Overseas investors, mostly Somalis living in Europe or North America, fund the pirates' operation and reap the large ransom payments, according to Mr Mwangura. "The ones holding the guns on the boats, they are just young boys, they are not pirates," he said. "It's a well-organised syndicate." The Piracy Reporting Centre said there have been 92 attacks this year on boats in the Gulf of Aden, a busy shipping lane connecting the Mediterranean Sea with the Indian Ocean. Of those attacks, 36 have resulted in hijackings including three in the last week. Three more were reported today. The buccaneers took a Thai fishing boat with 16 crew members, a Greek bulk carrier and a Hong Kong-flagged ship heading to Iran, which was being tracked today by EU and Nato coalition naval forces. At the same time pirates released a Hong Kong-flagged ship and its 25 crew seized two months ago, a Kenyan maritime official said. Also today, an Indian warship destroyed a pirate "mother ship" in the Gulf of Aden after it refused to stop for investigation, the Indian navy said. Pirates began to plague the Somali waters after Siad Barre was overthrown in 1991 sparking a civil war that continues today. In the absence of a central government or coastguard, Somali fishermen took up arms to protect their waters from foreign fishing vessels. The pirates began by charging foreign fishermen a "tax" to fish in Somali waters, but they soon discovered it was far more lucrative to hijack the vessels and collect the ransom. The combination of high ransom payments and a deteriorating humanitarian situation in Somalia has escalated the piracy problem to record levels this year. Pirates usually receive between $1m and $2m per ship. In September, after they discovered they had hijacked a Ukrainian ship carrying 33 battle tanks and ammunition, a band of pirates asked for a $20m ransom, which was later lowered to $8m. That boat, the MV Faina, is still being held along with 13 other vessels. There has been no reported ransom demand for the Sirius Star, though the supertanker is carrying $100m worth of Saudi oil and a crew of 25. Crew members are rarely harmed during hijackings and are usually released after a ransom is paid. After the Faina was hijacked, the international community scrambled to combat the piracy problem. The United Nations passed a resolution in September to allow an international military force to patrol Somalia's waters. Navy ships from the United States, United Kingdom, Canada, Russia, France and others are on standby off the Somali coast while Nato ships protect food aid shipments. Today, South Korean government officials said its military will seek parliamentary approval to send naval vessels to waters off Somalia to protect the country's commercial vessels from pirates. Officials admit that Somalia's coast, the longest in Africa, is difficult to patrol, and pirates have managed to avoid the world's best navies to continue their plunder. "This criminal phenomenon is getting out of control," Mr Mukundan said. "Unless firm action is taken against the pirates and their mother ships from which attacks are launched, the frequency of these attacks will only continue." A hardline Islamist alliance controlling Somalia's main southern port of Kismayo today promised tough measures to protect ships and traders from marauding pirates. "We will set up marine forces and will protect all ships and vessels from the pirates off the coastal areas we control," said Sheikh Hasan Yaqub, a spokesman for the Islamist administration in Kismayo. Human rights and other advocacy groups say the international community has focused too much attention on the piracy problem and has ignored the humanitarian disaster that continues to escalate in Somalia. More than a million people have been displaced in the past two years as Islamic insurgents have waged a fierce battle with the weak transitional government and their Ethiopian allies. Solving Somalia's political problems and stabilising the country is the most effective way to combat the piracy problem, some analysts say. "The verdict seems to be clear: combined Ethiopian, African Union troops and transitional government forces have failed to establish security in the capital Mogadishu, or any other part of the country," the International Crisis Group, a think tank, wrote in an op-ed piece. "If world leaders and the international media gave this the kind of priority they have given the pirates, then progress would be far easier." mbrown@thenational.ae *Additional reporting by Reuters and Agence France-Presse

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  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
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Test

Director: S Sashikanth

Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan

Star rating: 2/5

Pakistan Super League

Previous winners

2016 Islamabad United

2017 Peshawar Zalmi

2018 Islamabad United

2019 Quetta Gladiators

 

Most runs Kamran Akmal – 1,286

Most wickets Wahab Riaz –65

THE SPECS

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Hotel Silence
Auður Ava Ólafsdóttir
Pushkin Press

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.”

The chef's advice

Troy Payne, head chef at Abu Dhabi’s newest healthy eatery Sanderson’s in Al Seef Resort & Spa, says singles need to change their mindset about how they approach the supermarket.

“They feel like they can’t buy one cucumber,” he says. “But I can walk into a shop – I feed two people at home – and I’ll walk into a shop and I buy one cucumber, I’ll buy one onion.”

Mr Payne asks for the sticker to be placed directly on each item, rather than face the temptation of filling one of the two-kilogram capacity plastic bags on offer.

The chef also advises singletons not get too hung up on “organic”, particularly high-priced varieties that have been flown in from far-flung locales. Local produce is often grown sustainably, and far cheaper, he says.

The rules on fostering in the UAE

A foster couple or family must:

  • be Muslim, Emirati and be residing in the UAE
  • not be younger than 25 years old
  • not have been convicted of offences or crimes involving moral turpitude
  • be free of infectious diseases or psychological and mental disorders
  • have the ability to support its members and the foster child financially
  • undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
  • A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
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At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances