Yemeni prime minister Khaled Bahah (second from left) is greeted by supporters outside his house in Sanaa on March 16, 2015 after the Houthis agreed to free him and all his cabinet ministers after nearly two months of house arrest. STR/AFP Photo
Yemeni prime minister Khaled Bahah (second from left) is greeted by supporters outside his house in Sanaa on March 16, 2015 after the Houthis agreed to free him and all his cabinet ministers after neaShow more

Houthis on the backfoot as public anger grows in Yemen



SANAA // Opposition parties say the release of Yemen’s prime minister and top cabinet officials was not a sign of goodwill by the Houthis, but a result of growing public anger at the Shiite rebels’ takeover.

The Houthis, a group with roots to the Zaidi sect of Shiite Islam, on Monday lifted the house arrest of Khaled Bahah and members of his cabinet after two months, citing it as a “goodwill gesture”.

However, the same day, the Houthi-led Supreme Security Council curently ruling Yemen changed 14 top officials within the country’s air force – including the force’s chief who refused to take orders from the rebel group – and replaced them with Houthi loyalists.

It comes just two months after the rebels were at the peak of their power after taking over Sanaa and forcing president Abdrabu Mansour Hadi, Mr Bahah and his entire cabinet to resign.

This opened the doors for them to implement “the constitutional declaration” to dissolve parliament and form a transitional council.

No one stood against them then as internal, regional and international powers braced themselves for the new reality in Yemen.

Most foreign embassies in Sanaa evacuated and diplomats fled the country under security threats.

Even Saudi Arabia, the main powerbroker in Yemeni politics for the last five decades, halted its diplomatic mission in Sanaa, along with the UAE and other GCC countries, and prepared itself for a new era, where its arch enemy, Iran, was a strong supporter of the Houthis.

Political parties that opposed the Houthis were threatened and hundreds of anti-Houthi politicians and activists were beaten, arrested or kidnapped. Yemen was witnessing a dramatic shift of alliances, and Iran was suddenly the country’s main foreign ally.

The Houthis took control of the Yemeni army and the air force and assigned loyalists to key military positions while still in control of tens of thousands of militants who helped them take over Sanaa and other provinces.

The odds of the Houthis facing any obstacles then were very slim, but Yemen has always been unpredictable.

On February 21, Mr Hadi managed to escape a month-long house arrest in Sanaa. He headed to the southern province of Aden where he has a strong support base. From there, he withdrew his resignation and reclaimed his presidency.

Since then, Mr Hadi has regained international recognition as the country’s president and has been operating out of Aden.

Most of Yemen’s political parties, who were sidelined by the Houthis, saw new hope and announced their allegiance to Mr Hadi.

But the Houthis were undeterred and assigned the ruling Supreme Security Council with Mahmood Al Subaihi, who was defence minister under Mr Hadi’s rule, as its head.

However, two weeks later, Mr Al Subaihi himself escaped to Aden and announced his support for Mr Hadi.

Meanwhile, as Mr Hadi was regrouping in Aden, the Houthis were dealing with near economic collapse in Sanaa.

Tens of thousands of jobs have been lost since the Shiite rebels took control of Sanaa in September, mainly due to the evacuation of foreign diplomats and foreign oil investments. Blackouts of at least 14 hours continue on a daily basis. Thousands of public employees have yet to receive their salaries.

The central bank says Yemen’s foreign reserves dropped 6 per cent in January. Local investors quickly lost their confidence in the local currency and reverted to the US dollar.

Seeking a breakthrough, the Houthis sent a senior delegation to Iran for two weeks. A top Houthi official within the delegation told The National that Iran promised a US$2 billion (Dh7.3bn) trust fund for the Sanaa Central Bank to stabilise its economy and currency.

He said Tehran also agreed to fund an electricity power station with a capacity of 165 megawatt, and provide maintenance for the Mareb power station, which serves 70 per cent of Yemen’s population. In return, Iran wanted to sign a long term deal that grants Tehran presence near the strategic Mandeb Strait, which links the Indian Ocean to the Red Sea and Suez Canal, through a development project for the Yemeni port city of Hodeidah.

“Yemen will be the least to suffer from Iran’s presence near Bab Al Mandeb since it doesn’t have oil shipments (going through that route). Nations opposing Iran will regret turning a blind eye to Iran and allow it presence near one of the world’s most important shipping routes,” said Ali Al Jaradi, head of the media unit for Yemen’s Islah party, the country largest opposition group.

But Iran’s promises are easier said than done. It would take months before the first major tranche of Iranian financial support arrives in Yemen.

Amid growing public anger, opposing factions in Houthi-controlled areas are already gaining ground.

Earlier this week, Houthi opponents announced the formation of the National Rescue Coalition, which aims to unite players from difference regional and ideological backgrounds across Yemen against the Houthis and restore the authority of the state.

Sixty-five political parties, NGOs and movements pledged their support for the coalition, which received the backing of Saudi Arabia.

As UN-sponsored negotiations continue for the third month, a deal is far from being reached. Factions opposing the Houthis have stalled talks knowing that any signed deal will grant the Houthis recognition and legalise their coup and takeover of the government.

In the meantime, Saudi Arabia has been actively involved in negotiations with Yemen’s southern leaders and those living in exile.

“President Hadi’s escape from Sanaa gave new life to the Saudis, but both still need more time in order to put together the final pieces of the broader anti-Houthi alliance in Yemen,” said Baligh Al Mikhlafi, the spokesperson for the neutral Justice and Building Parties.

“This is just the beginning of a completely new chapter on Yemen and no one knows what’s going to happen next,” Mr Al Mikhlafi said.

foreign.desk@thenational.ae

TO%20CATCH%20A%20KILLER
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EDamian%20Szifron%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Shailene%20Woodley%2C%20Ben%20Mendelsohn%2C%20Ralph%20Ineson%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%202%2F5%3C%2Fp%3E%0A
Ms Yang's top tips for parents new to the UAE
  1. Join parent networks
  2. Look beyond school fees
  3. Keep an open mind
Company profile

Company: Rent Your Wardrobe 

Date started: May 2021 

Founder: Mamta Arora 

Based: Dubai 

Sector: Clothes rental subscription 

Stage: Bootstrapped, self-funded 

TWISTERS

Director: Lee Isaac Chung

Starring: Glen Powell, Daisy Edgar-Jones, Anthony Ramos

Rating: 2.5/5

A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

Anghami
Started: December 2011
Co-founders: Elie Habib, Eddy Maroun
Based: Beirut and Dubai
Sector: Entertainment
Size: 85 employees
Stage: Series C
Investors: MEVP, du, Mobily, MBC, Samena Capital

HER%20FIRST%20PALESTINIAN
%3Cp%3EAuthor%3A%20Saeed%20Teebi%3C%2Fp%3E%0A%3Cp%3EPages%3A%20256%3C%2Fp%3E%0A%3Cp%3EPublisher%3A%C2%A0House%20of%20Anansi%20Press%3C%2Fp%3E%0A
COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
Most F1 world titles

7 — Michael Schumacher (1994, ’95, 2000, ’01 ’02, ’03, ’04)

7 — Lewis Hamilton (2008, ’14,’15, ’17, ’18, ’19, ’20)

5 — Juan Manuel Fangio (1951, ’54, ’55, ’56, ’57)

4 — Alain Prost (1985, ’86, ’89, ’93)

4 — Sebastian Vettel (2010, ’11, ’12, ’13)

Election pledges on migration

CDU: "Now is the time to control the German borders and enforce strict border rejections" 

SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom" 

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 specs

Engine: Four electric motors, one at each wheel

Power: 579hp

Torque: 859Nm

Transmission: Single-speed automatic

Price: From Dh825,900

On sale: Now