Syrian women and a small girl walk down a street in rebel-held town of Talbiseh, north of Homs in central Syria on August 3, 2017. A ceasefire between government forces and rebels went into effect in part of central Syria on August 3, 2017 after Russia struck a deal with the opposition on a safe zone in the northern parts of Homs province. Mahmoud Taha / AFP
Syrian women and a small girl walk down a street in rebel-held town of Talbiseh, north of Homs in central Syria on August 3, 2017. A ceasefire between government forces and rebels went into effect in Show more

Truce in Syria's Homs province after Russia strikes deal for safe zone



Syrian regime forces and "moderate" rebels will cease combat in northern parts of Homs province on Thursday after Russia struck a deal with the opposition on implementing a third safe zone, Moscow said.

"From 1200 local time, units of the moderate opposition and government forces will completely stop firing," defence ministry spokesman Igor Konashenkov said in a statement.

Mr Konashenkov said Moscow and Syrian opposition groups had reached an agreement on the "operational details" of a "de-escalation zone" north of the city of Homs at talks in Cairo on July 31.

The zone is the third to be established in Syria under a Russian-led initiative aimed at halting the fighting in four areas between the forces of President Bashar Al Assad and rebels. It covers 84 towns and villages with a total population of 147,000 people.

Russia has been behind a drive to pacify Syria since the start of this year after tipping the six-year conflict in favour of Mr Assad with its game-changing military intervention in 2015.

Russian military police will set up two checkpoints and three observation posts on Friday along the boundaries of the zone dividing the two forces. Mr Konashenkov said rebels had agreed to "unblock" part of a road running through the safe zone between the cities of Homs and Hama and a "Committee for National Justice" made up of rebels and local groups would help oversee the implementation of the plan.

The northern parts of Homs province were recently being subjected to shelling by regime forces and intermittent air strikes. Towns in the area were among the first to fall to Mr Assad's opponents in 2012 after a revolt against his rule. They have remained outside the control of extremist groups including ISIL, which do not fall under the Russian deal.

Last month, Russia struck a deal with the United States and Jordan for a ceasefire in another southern zone, where Moscow has now deployed its military police. Under a second agreement sealed with rebels in July, Russian forces also set up two checkpoints and four observation posts in an area covering the conflict-ravaged region Eastern Ghouta near Damascus.

Under a plan hammered out between Russia, Turkey and Iran at peace talks in Kazakhstan one more safe zone is supposed to be established in the northwestern Idlib region. However, negotiations on that zone have been complicated by conflicting interests between the international powers. Moscow has been carrying out a bombing campaign to support regime forces, while Mr Assad's international opponents have been striking ISIL from the air as part of a US-led coalition.

Russia is planning a fresh round of talks in the Kazakh capital of Astana in late August to thrash out more details on its peace plan.

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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Iran v Japan, Hazza bin Zayed Stadium (6pm)

Tuesday, January 29
UAEv Qatar, Mohamed Bin Zayed Stadium (6pm)

Friday, February 1
Final, Zayed Sports City Stadium (6pm)