Hamas security forces take part in a training session in Gaza City.
Hamas security forces take part in a training session in Gaza City.

Clashes in Gaza kill four



GAZA CITY // Hamas security forces and a Gaza clan battled with mortars and machine guns today, leaving at least four people dead and 35 wounded in the most violent round yet of Hamas' weeklong crackdown on political rival Fatah. Loud explosions and gunfire could be heard throughout the day across Gaza City. Hamas said it arrested 15 people, including 10 who had tried to flee disguised as women, and confiscated weapons. In retaliation, masked Fatah gunmen in the West Bank seized a university professor with links to Hamas as he drove in his car and threatened to execute him unless Hamas halts the Gaza raid.

With today's violence, the current round of Hamas-Fatah tensions threatened to spiral out of control. The confrontations began last week when a car bomb killed five Hamas militants in Gaza. In response, Hamas seized more than 200 Fatah supporters in the biggest crackdown since wresting control of the territory from Palestinian President Mahmoud Abbas, the leader of Fatah, in June 2007. Fatah, which runs the West Bank, retaliated by arresting scores of Hamas activists. Today's fighting began under heavy morning fog when Hamas police took up positions in Gaza City's Shijaiyeh neighbourhood, a stronghold of the Hilles clan, which is allied with Fatah.

Hamas accused the Hilles clan of hiding suspects in last week's bombing, an allegation denied by Ahmed Hilles, a Fatah leader and senior clan member. Hilles said Hamas police cut off electricity as they launched the raid, but said his clan would defend itself. "You have to decide: Either be trampled under Hamas' shoes, or stand in dignity," he said in a phone interview, as gunfire crackled in the background. Islam Shahwan, a Hamas police spokesman, said several clan members tried to flee disguised as women. Three Hamas police and a member of the Hilles clan were killed. During the fighting, a rocket hit members of a family, wounding several people, said Mr Shahwan. He added that Hamas security men had stormed several high-rise buildings and arrested rooftop snipers, as well as gunmen and wounded fighters. "We are determined to continue the raid until we arrest all those involved," Mr Shahwan said. "This is just the beginning." Hamas officials shut down a radio station affiliated with the small Popular Front for the Liberation of Palestine, saying that the station was reporting "lies and rumors and inciting sedition," the group said. A senior Abbas aide in the West Bank, Tayeb Abdel Rahim, denounced Gaza's Hamas rulers as "the new Mongols". But in act of goodwill, Hamas released 10 Fatah leaders after Egyptian mediaton. *AP

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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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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.

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