Residents inspect the damage after an air raid by Syrian government forces north of Aleppo yesterday. The Syrian leadership is suspected of having stocks of nerve and mustard gas, and Scud missiles with which to deliver them.
Residents inspect the damage after an air raid by Syrian government forces north of Aleppo yesterday. The Syrian leadership is suspected of having stocks of nerve and mustard gas, and Scud missiles wiShow more

Syria warned of 'blistering' response if it uses bio-weapons



MARSEILLE, France // France issued a new warning to President Bashar Al Assad yesterday that western powers would immediately mount a "massive and blistering" response if the Syrian regime resorted to chemical or biological weapons in its attempts to crush revolt.

Without specifying the nature of action Syria would face, Laurent Fabius, the French foreign minister, said broad agreement had been reached in talks "notably with our American and English partners".

His message, in an interview on RMC radio, reinforced a previous warning from the United States.

President Barack Obama said last month that American military intervention would follow in the event of unconventional arms being moved or prepared for use.

The Syrian leadership is suspected of having stocks of nerve and mustard gas, and Scud missiles with which to deliver them.

It has not directly threatened to use such weapons against rebel forces fighting a civil war aimed at bring down the Assad regime, but has said they could be deployed if the country were attacked from outside.

Foreign intervention is precisely what opposition forces want, as the opposition Syrian National Council (SNC) leader, Abdel Basset Sayda, made clear on a visit to Spain yesterday.

"I am going to be very clear, we are requesting military intervention in order to protect Syrian civilians who have been constantly murdered over the last year and a half," he said after meeting the Spanish foreign minister, Jose Manuel Garcia Margallo.

"The European Union should take the initiative and pressure Russia ... so we can lay down some protected areas for refugees."

Mr Margallo pledged Spanish commitment to attempts to mould a united EU approach and urged Syrian opposition groups to overcome their divisions.

The comments in Europe followed strong words from the Gulf Cooperation Council, which on Sunday condemned the Assad regime's use of heavy weapons to inflict "continuing massacres" on civilians.

Meeting in Jeddah, the GCC - representing the UAE, Saudi Arabia, Bahrain, Oman, Qatar and Kuwait - called on the international community to "assume their responsibilities and take measures to protect civilians".

France, which administered Syria as part of a League of Nations mandate from 1923 to 1943, has recently been intensifying its war of words against Mr Al Assad and his government.

After opposition criticism of his silence on the conflict, the new socialist president, François Hollande, used an annual gathering of French ambassadors last week to urge dissident groups to form a provisional government which, he said, France would instantly recognise.

Mr Fabius said Russia and China held "the same position" on chemical arms though he did not explain this further and also spoke of frustration at the continued support they offered Mr Al Assad.

Both countries have used their vetoes at the UN Security Council to block attempts by the US and Arab nations to impose sanctions on Damascus.

The Russian deputy foreign minister, Gennady Gatilov, insisted in a recent interview with Associated Press that his country, Syria's major arms supplier, had been assured by Mr Al Assad's government that chemical and biological would not be used. He added that Moscow would "work toward the goal of preventing such things from happening".

China has argued from the outset of the uprising that a negotiated settlement, and not external interference, was needed in Syria.

Meanwhile, the UN's new envoy to Syria, Lakhdar Brahimi, conceded yesterday that finding a way to end the civil war was a "very, very difficult task" and indeed "nearly impossible".

In Damascus, Mr Al Assad's information minister, Omran Al Zoebi, said Syria would give the UN envoy "maximum assistance the way we did with Kofi Annan", an assertion GCC and western powers are likely to treat with suspicion.

The SNC says the conflict had already cost 30,000 lives, led to 100,000 people being detained and driven millions from their homes.

Violence continues on a daily basis. A deadly car bomb tore through a mainly Christian Damascus suburb yesterday while Syrian warplanes pounded Aleppo province, killing dozens of people, as the opposition pleaded for arms and intervention. The violence came as the chief of the Red Cross headed to Damascus on a humanitarian mission, his office said.

At least 18 people were killed yesterday in the northern town of Al Bab, 30 kilometres from the Turkish border; when government aircraft attacked a residential area, according to the Syrian Observatory for Human Rights, based in Britain, and local coordination committees. Activists, meanwhile, reported scattered violence in regions across the country and said that more than 100 people had been killed yesterday.

The Syrian army will recapture Aleppo from rebel forces within 10 days, a senior commander in charge of the five-week military offensive on the commercial capital said yesterday The city would fall once Saif al-Dawla, one of the two "toughest" neighbourhoods, was conquered as the other, Salaheddin, had already been seized back from the "terrorists" concentrated in the two areas, the general said on condition of anonymity.

* With additional reporting by Associated Press and Agence France-Presse

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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