Leaked emails allege senior figures in Qatar’s government are on close terms with people such as Hassan Nasrallah, head of Hezbollah. Bilal Hussein / AP
Leaked emails allege senior figures in Qatar’s government are on close terms with people such as Hassan Nasrallah, head of Hezbollah. Bilal Hussein / AP

Stop funding pro-Iranian militias, US warns Qatar



The United States is urging Qatar to stop funding pro-Iranian militias after fresh disclosures about the Gulf state’s links to terror organisations.

It comes after The Sunday Telegraph saw a series of emails that were reportedly sent from senior Qatari officials to key members of groups such as Hezbollah, as well as to commanders in Iran's Revolutionary Guard.

The emails show that senior figures in Qatar’s government are on close terms with influential members of Iran’s Revolutionary Guards such as Qasem Soleimani, head of the Iranian Quds Force, and the head of Hezbollah, Hassan Nasrallah.

The transcripts of the emails, which were previously undisclosed, show that Doha paid hundreds of millions of dollars in ransom money in exchange for hostages being held by Shia militias in southern Iraq. According to one report, the sum paid was as high as US$1 billion (Dh3.67 billion).

US security officials reacted to the revelations with concern, as many Iranian-sponsored militias are viewed as terrorist organisations by Washington.

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The payments also fly in the face of America’s longstanding policy not to make ransom payments to terrorist groups.

A senior US security official, cited by The Sunday Telegraph, said: "What these emails show is that a number of senior Qatari government officials have developed cordial relations with senior figures in Iran's Revolutionary Guard, as well as a number of Iranian-sponsored terrorist organisations."

The official added: “At a time when the US government is trying to persuade Iran to end its support for terror groups in the Middle East, we do not believe it is helpful that Qatar continues to have ties with such organisations.”

Last week, US President Donald Trump decided to pull out of the Iran nuclear deal and renew economic sanctions on the country, fulfilling a campaign pledge. The Trump administration is now urging Qatar to rethink its relationship with Iran, as well as with Iran-backed terrorist groups, in the wake of that decision.

According to The Sunday Telegraph, the Qataris claim they engaged in communications with Tehran and with a number of Iranian-sponsored militias in order to secure the freedom of several members of Qatar's royal family who were kidnapped while out hunting in southern Iraq.

Around £50 million (Dh248 million) was reportedly paid to Mr Soleimani in April 2017, a senior Qatari official said in one of the emails. A further £25 million was paid to an Iraqi Shia terror group that is said to have killed large numbers of US troops in southern Iraq.

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COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4

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.”

RESULT

Al Hilal 4 Persepolis 0
Khribin (31', 54', 89'), Al Shahrani 40'
Red card: Otayf (Al Hilal, 49')

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