Members of Iraq's Popular Mobilisation Forces paramilitaries chant slogans ahead of the funeral of members of the group killed in a US strike in Baghdad in January. AFP
Members of Iraq's Popular Mobilisation Forces paramilitaries chant slogans ahead of the funeral of members of the group killed in a US strike in Baghdad in January. AFP
Members of Iraq's Popular Mobilisation Forces paramilitaries chant slogans ahead of the funeral of members of the group killed in a US strike in Baghdad in January. AFP
Members of Iraq's Popular Mobilisation Forces paramilitaries chant slogans ahead of the funeral of members of the group killed in a US strike in Baghdad in January. AFP

Iran-backed militias in Iraq step up warnings of attacks on US troops


Robert Tollast
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Iran-backed militias in Iraq continued to issue threats to attack the US on Sunday, repeating their insistence that American forces should leave Iraq.

Kataib Sayyid Al Shuhada was the latest faction to issue the warning, speaking to Iraq’s Shafaq news agency.

“The presence of American forces in Iraq – which are occupying forces – is categorically rejected,” the group’s spokesman told the news outlet. He said Kataib Sayyid Al Shuhada was “working to remove those forces through factional operations.”

The militia joined a coalition of mostly Iran-backed Iraqi groups formed to fight ISIS in 2014, the Popular Mobilisation Forces, which is part of the official Iraqi Security Forces.

Attacks on US forces in Iraq are currently rare, after a wave of nearly 200 attacks following the Israel-Gaza war.

The current pause is due to Iraqi government talks with the US to agree on a timeline for withdrawing forces. If the talks fail to reach an agreement, further attacks are widely expected following several warnings by the militias.

Kataib Sayyid Al Shuhada – one of the oldest Iran-backed factions in Iraq, formed in the early 1990s as a militia opposed to the Saddam Hussein regime – has joined a parallel PMF organisation.

The Islamic Resistance in Iraq formed after the eruption of the Israel-Gaza war, acting as an umbrella organisation for claiming attacks in support of Hamas.

Members of the Iraqi Shiite Popular Mobilisation Forces are seen after a drone attack on security headquarters in Baghdad. EPA
Members of the Iraqi Shiite Popular Mobilisation Forces are seen after a drone attack on security headquarters in Baghdad. EPA

It includes Kataib Hezbollah, among the most violent and well-armed of Iran’s proxies in Iraq, which fought the US occupation.

The US killed the group’s leader, Jamal Jaafar Al Ibrahim, who went by the pseudonym Abu Mahdi Al Muhandis, in a drone strike near Baghdad airport in 2020, alongside senior Iranian general Qassem Suleimani.

Since that strike, which followed a period of rising clashes between the PMF and coalition forces, Iran-backed groups have pressed the Iraqi government to expel US forces, with little success.

Attacks on Israel

Problems encountered include objections from Sunni and Kurdish MPs, and concurrent challenges faced by Iraq, including sharp political factionalism that has paralysed decision making for extended periods.

Islamic Resistance in Iraq and its affiliates have been in the spotlight since late January when they claimed a drone attack on a US outpost in Jordan, killing three soldiers.

The US retaliated with air strikes, hitting militia outposts across the country and killing scores of the fighters. The Jordan attack, which struck the Tower 22 outpost, was an unprecedented escalation by the groups on US forces stationed outside Iraq.

That month, the spokesman for Kataib Hezbollah boasted of possessing an arsenal of long-range missiles and drones, including cruise missiles, which were later used in strikes against Israel.

The threat comes amid long-term, high-level talks between Baghdad and Washington “for a gradual reduction leading to the end of the [coalition’s] mission”, originally to train Iraqi forces in their fight against ISIS, starting in late 2014.

The mission, which involves soldiers from a number of Nato countries, largely depends on the US for the backbone of troops, with about 2,500 still in Iraq.

US soldiers guard the Qayyarah air base near Mosul. AFP
US soldiers guard the Qayyarah air base near Mosul. AFP

ISIS can barely muster more than five to 10 attacks across Iraq per month, mostly using light weapons in remote areas, in stark contrast to its peak, when it controlled one third of Iraq and Syria, and carried out hundreds of attacks a week.

But the coalition training mission has been challenged by PMF attacks on US forces, which have surged since the Israel-Gaza war started on October 7.

Hamas is an ally of the PMF and receives arms and funding from Iran. Hundreds of drone and rocket attacks on US forces have disrupted the already slimmed-down counter-ISIS mission.

The militia warning comes amid growing concerns that the Israel-Gaza war will spread, beyond additional fronts in Lebanon and Syria, where almost daily exchanges of fire and air strikes are taking place.

Harakat Hezbollah Al Nujaba, another militia within the Islamic Resistance, said it would retaliate if Israeli jets strike its positions in Iraq. Israel has conducted hundreds of air strikes on Iran-linked weapons and arms smuggling in Syria since 2013.

The conflict escalated sharply on April 1 when Israeli jets bombed the Iranian embassy complex in Damascus, killing two senior Iranian generals and five other officers. Iran retaliated on April 13, firing hundreds of ballistic missiles and drones towards Israel, but causing little damage.

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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.”

Updated: June 09, 2024, 12:54 PM