The site of a drone strike on the road between Yafe and Radfan districts of the southern Yemeni province of Lahj on August 11.
The site of a drone strike on the road between Yafe and Radfan districts of the southern Yemeni province of Lahj on August 11.

Yemen plot highlights need for new US strategy



NEW YORK // Last week as 19 US diplomatic posts in the Middle East and Africa were closed because of an alleged Al Qaeda terror plot, critics of the US president, Barack Obama, seized quickly on what they said was a contradiction in his administration's counter-terror policies.

If, as administration officials have claimed in recently, Al Qaeda is a sapped force and the "war on terror" as we know it is coming to an end, why was such drastic action taken?

In their defence, US intelligence officials made it known that the intercepted communication that triggered the closure of US diplomatic missions was a message from the head of Al Qaeda's Yemeni affiliate to the group's overall head, Ayman Al Zawahiri.

In the message, according to the officials, Nasser Al Wuhayshi did not agree to carry out an attack concocted and ordered by the Al Qaeda leader, believed to be in Pakistan. Instead, he asked Mr Al Zawahiri's blessing for an attack he had planned.

For supporters of Mr Obama, that disclosure could not have come at a more propitious moment. It bolstered administration claims that, despite the terror alert, the veteran Al Qaeda leadership in Pakistan has been severely weakened and lacks command-and-control over faraway affiliates.

According to security experts, the most significant change in capability that the Yemen plot revealed - if the leaked intelligence intercept is true - is that Al Qaeda affiliates have the technology to communicate electronically in near real time, said Thomas Hegghammer, the director of terrorism research at the Norwegian Defence Research Establishment in Oslo.

"But one conference call doesn't make an attack," he said. "That is not the same as they have the ability to coordinate operations at the sort of level of sophistication that was seen in preparation for 9/11."

Yet even though the controversy it sparked has subsided, the disrupted plot underscores the new, more complex threat that has emerged in the wake of the Arab Spring and the weakening of Al Qaeda's base in Afghanistan, analysts have said.

Extremist groups, some with links to the old Al Qaeda, others simply inspired by it, have found fertile ground in the Arab Spring countries, as democratic transitions have stalled and economies continued to fray, said Thomas Sanderson, the director of the Transnational Threats Project at the Centre for Strategic and International Studies (CSIS) in Washington.

The counter-terrorism strategy honed by the Obama administration relied primarily on covert military operations, such as drone strikes and the raid that killed Osama bin Laden. These tactics were particularly effective in disrupting Al Qaeda in Pakistan, where its members, mostly foreign Arabs, hid among a non-Arab local population. But these methods have proven less effective against groups who blend in to the communities around them.

Al Qaeda in the Arabian Peninsula (Aqap) is the most formidable of these organisations, and the only one believed capable of targeting the US. Its membership has grown even as the US killed several of its leaders with drone strikes and assisted the Yemeni military in pushing the group out of territory it held in southern Yemen, said Gregory Johnsen, a Yemen scholar at Princeton University and the author of a book on Aqap.

That expansion caused one legislator earlier this year to ask whether the administration's counter-terrorism policies were outdated.

"If the cancer of Al Qaeda is metastasising, do we need a new treatment?" Senator Susan Collins asked CIA director John Brennan at a congressional hearing this year.

In May, in a speech at the National Defence University in Washington, Mr Obama hinted at the need to rethink US counter-terror policies.

"We cannot use force everywhere that a radical ideology takes root and, in the absence of a strategy that reduces the wellspring of extremism, a perpetual war — through drones or special forces or troop deployments — will prove self-defeating," he said.

While the recent drone strikes in Yemen showed that the administration could act quickly against an imminent threat that is not necessarily proof that it has a viable strategy to reduce the causes of extremism, said a former Pentagon official and security expert at CSIS.

"What is far less clear is that this US strategy has gone from the conceptual level to a realistic effort to implement it," Anthony Cordesman wrote in a July report on Yemen.

There are many hurdles to implementing a new kind of counter-terrorism strategy that is not measured mainly by body counts.

"Can you convince Congress to do the more convoluted, softer side of counter-terrorism when it's a lot easier to sell special ops assaults as being effective than you can poverty reduction?" said Mr Sanderson.

"The political incentives all go in the direction of continuing to hit people with drone strikes and doing all the things we've been doing, and that's what worries me," said Paul Pillar, a former intelligence official.

"There's no way any leader can say, once an event happens, 'Well, this is one of the ones we didn't catch'."

Yet as the examples of Yemen, Iraq and Afghanistan illustrate, the ability of Washington to shape local politics through programmes aimed at building state institutions and encouraging economic development is limited, experts have said.

The US has earmarked US$600 million (Dh2.2 billion) for Yemen since 2011, with $250 million for fighting terrorism and the rest for strengthening state institutions. Nevertheless, Aqap was still viewed as strong enough to trigger the closure US diplomatic missions.

"The US can provide some forms of expertise and security assistance, it can provide limited aid in governance and economic reform, but there will be no quick solutions," Mr Cordesman wrote.

Another obstacle for Mr Obama's vision for a new counter-terrorism strategy is the massive counter-terrorism bureaucracy that has grown accustomed to military tactics rather than underlying political and societal causes.

"Critics are measuring the effect of drones in Aqap's size on the ground in Yemen and they see that it hasn't reduced the size of the organisation," said Mr Hegghammer.

"But for the CT [counter-terrorism] strategist sitting in Virginia, it doesn't matter how large Aqap is if it's unable to attack the homeland."

The spectre of the September 11, 2012, attack in Benghazi, which killed four Americans including the ambassador, likely led the state department to close so many embassies, the analysts said.

The Benghazi attack has made it even more difficult to implement a counter-terrorism strategy that doesn't rely on "red meat", Mr Sanderson said.

In the meantime, on web forums Aqap supporters were praising what they called its "psychological" victory. "The mobilisation and security precautions are costing them billions of dollars. We hope to hear more of such psychological warfare, even if there are no actual jihadi operations on the ground," said one forum comment.

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In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

2025 Fifa Club World Cup groups

Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.

Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.

Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).

Group E: River Plate, Urawa, Monterrey, Inter Milan.

Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.

Group G: Manchester City, Wydad, Al Ain, Juventus.

Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.

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: 2.0-litre 4-cylturbo

Transmission: seven-speed DSG automatic

Power: 242bhp

Torque: 370Nm

Price: Dh136,814

The smuggler

Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple. 
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.

Khouli conviction

Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.

For sale

A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.

- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico

- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000

- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950

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PROFILE OF HALAN

Started: November 2017

Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga

Based: Cairo, Egypt

Sector: transport and logistics

Size: 150 employees

Investment: approximately $8 million

Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar

A Cat, A Man, and Two Women
Junichiro
Tamizaki
Translated by Paul McCarthy
Daunt Books