When the Sirius Star and its US$100 million crude oil cargo and 25 crew were hijacked by Somali pirates nine days ago, one country was ready to respond immediately.
After Indian shipowners and seafarers' unions outlined the pirate threat, New Delhi moved with laserlike focus. The navy dispatched a warship to the region in mid-October, and its personnel have in recent weeks foiled three attempted hijackings and sunk a pirate mother ship - the only country to do so.
The Somali pirates have wreaked havoc - increasingly so - in the Gulf of Aden and along the coast of Somalia in recent months. Piracy in the region has tripled this year, according to the International Maritime Bureau, with more than 120 attacks resulting in 40 hijackings, hundreds of hostages and at least seven dead crew. Estimates of Somali pirates' 2008 ransom income range from $30 million (Dh110m) to $150m.
A recent rash of brazen attacks has upped the ante. The Sirius Star hijacking took place 830 kilometres from the coast of Kenya, meaning the pirates have put all area shipping routes at risk. Feeling the heat, major shipping firms - including the world's largest carrier, Copenhagen-based AP Moller-Maersk - have begun diverting liners away from the area, even though the alternative route around the Cape of Good Hope means millions in extra costs.
Analysts estimate up to half a billion dollars in lost shipping revenue this year.
Yet news reports highlight the pirates' shiny mansions, advanced weaponry and hi-tech gadgets. The international community appears baffled, responding with concern but minimal focus. Most agree that a long-term solution involving the establishment of a stable Somali government could take up to a decade. About short-term responses there has been no such consensus.
In a hastily arranged meeting with its neighbours, Egypt tried last week to forge a joint regional antipiracy strategy - but to no avail. The United Nations has authorised asset freezes and travel bans, despite the fact that Somali pirates live off cash ransoms dropped from helicopters. Nato has dispatched several warships, but like the United States and the European Union, points out that it has no jurisdiction to attack hijacked ships. The possibility of attacking pirate ships is rarely addressed.
The United States has been particularly feeble. Last week the US navy told shipping companies to ensure their own security by hiring private contractors. Yet over three years ago Adm Michael Mullin, now chairman of the Joint Chiefs of Staff, suggested a global security partnership to tackle maritime piracy and terrorism. The only result is the US-run Global Fleet Station, a pilot version of which was launched last year in the Caribbean, suggesting the United States is either living in the past or watching too many movies.
Contrast all this with the confident clarity coming from India.
Last week the Indian government authorised hot pursuit of pirate vessels, announced the imminent dispatch of three more warships and a reconnaissance aircraft and urged the United Nations to orchestrate joint action. The International Maritime Bureau has praised India's response and urged the international community to follow it.
India has been facing down piracy since making maritime history with the rescue of a Japanese vessel from pirate hands in the Arabian Sea in 1999. Indian frigates escorted US warships headed to Afghanistan through the pirate-infested Malacca Straits in 2002. And after the devastating 2004 tsunami as well as after Cyclone Nargis struck Myanmar this year, Indian ships were first to deliver aid and relief supplies.
Yet last week's missions marked a sea change - the first time the Indian navy had fired shots in anger so far from home. The world's largest democracy has long sought to transform its economic growth into military and diplomatic might, and is in the process of acquiring the hallmarks of a naval power - aircraft carriers and nuclear submarines. These recent manoeuvres, 2,900km from its shores, represent a more aggressive stance, an effort to exert control over the waters from Djibouti to Indonesia - a stretch of open and not-so-open sea through which 20,000 commercial vessels and crucial regional energy supplies pass each year. Paired with a successful moon landing this month and the recently completed civilian nuclear deal with the United States, India's anti-pirate aggression is the act of a rising world power seizing the opportunity on a floodlit stage.
A welcome stance, indeed, but tackling Somali piracy will take a great deal more.
"The only solution I see is a co-ordinated effort by various naval forces," said Fred Burton, an analyst with Stratfor, a US-based risk assessment agency. "The problem is that no single country wants to take the lead."
In the past couple of weeks, India has done just that, but its lone-wolf aggression will not end the threat. A UN Security Council draft resolution that calls upon capable navies to dispatch armed vessels and combat the menace would be a good first step.
But whether the international community is ready to follow India's lead and take on Somali piracy with the seriousness it deserves remains to be seen.
The National
How to help
Donate towards food and a flight by transferring money to this registered charity's account.
Account name: Dar Al Ber Society
Account Number: 11 530 734
IBAN: AE 9805 000 000 000 11 530 734
Bank Name: Abu Dhabi Islamic Bank
To ensure that your contribution reaches these people, please send the copy of deposit/transfer receipt to: juhi.khan@daralber.ae
The years Ramadan fell in May
The specs
Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%3A%3C%2Fstrong%3E%20Eco%20Way%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20December%202023%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Ivan%20Kroshnyi%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Electric%20vehicles%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Bootstrapped%20with%20undisclosed%20funding.%20Looking%20to%20raise%20funds%20from%20outside%3Cbr%3E%3C%2Fp%3E%0A
Tuesday results:
- Singapore bt Malaysia by 29 runs
- UAE bt Oman by 13 runs
- Hong Kong bt Nepal by 3 wickets
Final:
Thursday, UAE v Hong Kong
How to invest in gold
Investors can tap into the gold price by purchasing physical jewellery, coins and even gold bars, but these need to be stored safely and possibly insured.
A cheaper and more straightforward way to benefit from gold price growth is to buy an exchange-traded fund (ETF).
Most advisers suggest sticking to “physical” ETFs. These hold actual gold bullion, bars and coins in a vault on investors’ behalf. Others do not hold gold but use derivatives to track the price instead, adding an extra layer of risk. The two biggest physical gold ETFs are SPDR Gold Trust and iShares Gold Trust.
Another way to invest in gold’s success is to buy gold mining stocks, but Mr Gravier says this brings added risks and can be more volatile. “They have a serious downside potential should the price consolidate.”
Mr Kyprianou says gold and gold miners are two different asset classes. “One is a commodity and the other is a company stock, which means they behave differently.”
Mining companies are a business, susceptible to other market forces, such as worker availability, health and safety, strikes, debt levels, and so on. “These have nothing to do with gold at all. It means that some companies will survive, others won’t.”
By contrast, when gold is mined, it just sits in a vault. “It doesn’t even rust, which means it retains its value,” Mr Kyprianou says.
You may already have exposure to gold miners in your portfolio, say, through an international ETF or actively managed mutual fund.
You could spread this risk with an actively managed fund that invests in a spread of gold miners, with the best known being BlackRock Gold & General. It is up an incredible 55 per cent over the past year, and 240 per cent over five years. As always, past performance is no guide to the future.
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Company%20Profile
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LOVE%20AGAIN
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Game Of Thrones Season Seven: A Bluffers Guide
Want to sound on message about the biggest show on television without actually watching it? Best not to get locked into the labyrinthine tales of revenge and royalty: as Isaac Hempstead Wright put it, all you really need to know from now on is that there’s going to be a huge fight between humans and the armies of undead White Walkers.
The season ended with a dragon captured by the Night King blowing apart the huge wall of ice that separates the human world from its less appealing counterpart. Not that some of the humans in Westeros have been particularly appealing, either.
Anyway, the White Walkers are now free to cause any kind of havoc they wish, and as Liam Cunningham told us: “Westeros may be zombie land after the Night King has finished.” If the various human factions don’t put aside their differences in season 8, we could be looking at The Walking Dead: The Medieval Years.
COMPANY PROFILE
● Company: Bidzi
● Started: 2024
● Founders: Akshay Dosaj and Asif Rashid
● Based: Dubai, UAE
● Industry: M&A
● Funding size: Bootstrapped
● No of employees: Nine
Cricket World Cup League 2
UAE squad
Rahul Chopra (captain), Aayan Afzal Khan, Ali Naseer, Aryansh Sharma, Basil Hameed, Dhruv Parashar, Junaid Siddique, Muhammad Farooq, Muhammad Jawadullah, Muhammad Waseem, Omid Rahman, Rahul Bhatia, Tanish Suri, Vishnu Sukumaran, Vriitya Aravind
Fixtures
Friday, November 1 – Oman v UAE
Sunday, November 3 – UAE v Netherlands
Thursday, November 7 – UAE v Oman
Saturday, November 9 – Netherlands v UAE