Latest news with #OmarMahmood
Kuwait Times
5 days ago
- Politics
- Kuwait Times
Somalia donors losing faith as Al-Shabaab insurgency surges
Govt faces a perfect storm of declining global support and demoralized army NAIROBI: Despite billions of dollars in international support, Somalia's army has melted in the face of a months-long offensive by the Al-Qaeda-linked Al-Shabaab insurgency, and donors are running out of patience. Using hundreds of fighters and a vehicle packed with explosives for a suicide attack, Al-Shabaab retook the town of Moqokori on July 7, the latest in a wave of defeats this year for the government. It has given them a strategic geographical position to launch attacks into the Hiiraan region, but it was also a powerful symbolic victory over a local clan militia that had been the government's 'best fighting force' against Al-Shabaab, according to Omar Mahmood of the International Crisis Group. Somalia's government has been battling the Islamist militant group since the mid-2000s and its fortunes have waxed and waned, but now faces a perfect storm of declining international support, a demoralized army and political infighting. The government relied on local militias, known as 'Macwiisley', for a successful campaign in 2022-23, taking some 200 towns and villages from Al-Shabaab. But the insurgents' counter-offensive this year has seen them regain some 90 percent of their lost territory, estimates Rashid Abdi of Sahan Research, a think tank. Towns that were supposed models of stabilization, like Masaajid Cali Gaduud and Adan Yabal, have fallen. Three bridges along the Shebelle River, crucial to military supply lines, have been destroyed. 'The whole stretch from the north-west to the south-west of Mogadishu is now controlled largely by Al-Shabaab,' Abdi told AFP. The Macwiisley campaign collapsed, he said, because the government of President Hassan Sheikh Mohamud, known as HSM, 'was extremely inept at working with the clans', empowering some and not others based on political favoritism rather than military needs. 'The mobilization went well when the president came from Mogadishu to start the first phase of the offensive (in 2022). Everybody was heavily involved in the fighting... assisting the national army,' Mohamed Hassan, a local militia member in Hiiraan, told AFP. 'It's no longer the same because the leadership are no longer involved and there seems to be disorganization in how the community militias are mobilized,' he added. The Somali National Army has done little to stem the insurgents, unsurprising for a force 'still in development mode while trying to fight a war at the same time,' said Mahmood, the analyst. Its most effective arm, the US-trained 'Danab' commando unit, is better at killing militants than holding territory, and has suffered demoralizing losses to its officer corps, added Abdi. 'We are beginning to see an army that is not just dysfunctional, but losing the will to actually fight,' he said. The problems stem from the wider chaos of Somali politics, in which a kaleidoscope of clan demands have never resolved into anything like a national consensus. The government has vowed a renewed military push, but President Mohamud's focus has been on holding the country's first-ever one-man, one-vote election next year. That 'will not happen', said a Western diplomat, speaking on condition of anonymity. Even in Mogadishu, where security is strongest, 'any polling station would get bombed,' he said. 'It's unfortunate that attention was shifted towards insignificant political-related matters which do not help security instead of focusing on strengthening the armed forces,' ex-president Sharif Sheikh Ahmed recently told reporters. Al-Shabaab has not launched a full assault on the capital, but has repeatedly demonstrated its presence. Pot-shots targeting the airport are at an all-time high, said the diplomat, and Mohamud narrowly survived an attack on his convoy outside the presidential palace in March. The group also controls much of the economy. 'It out-taxes the state. Its business tentacles spread everywhere,' said Abdi. 'It is one of the wealthiest insurgencies in Africa.' Meanwhile, the government's foreign backers are losing patience. The European Union and United States have poured well over $7 billion into Somali security — primarily various African Union-led missions — since 2007, according to the EU Institute for Security Studies. The previous AU mission ended in December, but had to be immediately replaced with a new one — with the quip-generating acronym AUSSOM — because Somali forces were still not ready to take over. — AFP
Arab News
6 days ago
- Politics
- Arab News
Somalia donors losing faith as Al-Shabab surges
NAIROBI: Despite billions of dollars in international support, Somalia's army has melted in the face of a months-long offensive by the Al-Qaeda-linked Al-Shabab insurgency, and donors are running out of patience. Using hundreds of fighters and a vehicle packed with explosives for a suicide attack, Al-Shabab retook the town of Moqokori on July 7, the latest in a wave of defeats this year for the government. It has given them a strategic geographical position to launch attacks into the Hiiraan region, but it was also a powerful symbolic victory over a local clan militia that had been the government's 'best fighting force' against Al-Shabab, according to Omar Mahmood of the International Crisis Group. Somalia's government has been battling the Islamist militant group since the mid-2000s and its fortunes have waxed and waned, but now faces a perfect storm of declining international support, a demoralized army and political infighting. The government relied on local militias, known as 'Macwiisley,' for a successful campaign in 2022-23, taking some 200 towns and villages from Al-Shabab. But the insurgents' counter-offensive this year has seen them regain some 90 percent of their lost territory, estimates Rashid Abdi of Sahan Research, a think tank. Towns that were supposed models of stabilization, like Masaajid Cali Gaduud and Adan Yabal, have fallen. Three bridges along the Shebelle River, crucial to military supply lines, have been destroyed. 'The whole stretch from the north-west to the south-west of Mogadishu is now controlled largely by Al-Shabab,' Abdi told AFP. The Macwiisley campaign collapsed, he said, because the government of President Hassan Sheikh Mohamud, known as HSM, 'was extremely inept at working with the clans,' empowering some and not others based on political favoritism rather than military needs. 'The mobilization went well when the president came from Mogadishu to start the first phase of the offensive (in 2022). Everybody was heavily involved in the fighting... assisting the national army,' Mohamed Hassan, a local militia member in Hiiraan, told AFP. 'It's no longer the same because the leadership are no longer involved and there seems to be disorganization in how the community militias are mobilized,' he added. The Somali National Army has done little to stem the insurgents, unsurprising for a force 'still in development mode while trying to fight a war at the same time,' said Mahmood, the analyst. Its most effective arm, the US-trained 'Danab' commando unit, is better at killing militants than holding territory, and has suffered demoralizing losses to its officer corps, added Abdi. 'We are beginning to see an army that is not just dysfunctional, but losing the will to actually fight,' he said. The problems stem from the wider chaos of Somali politics, in which a kaleidoscope of clan demands have never resolved into anything like a national consensus. The government has vowed a renewed military push, but President Mohamud's focus has been on holding the country's first-ever one-man, one-vote election next year. That 'will not happen,' said a Western diplomat, speaking on condition of anonymity. Even in Mogadishu, where security is strongest, 'any polling station would get bombed,' he said. 'It's unfortunate that attention was shifted toward insignificant political-related matters which do not help security instead of focusing on strengthening the armed forces,' ex-president Sharif Sheikh Ahmed recently told reporters. Al-Shabab has not launched a full assault on the capital, but has repeatedly demonstrated its presence. Pot-shots targeting the airport are at an all-time high, said the diplomat, and Mohamud narrowly survived an attack on his convoy outside the presidential palace in March. The group also controls much of the economy. 'It out-taxes the state. Its business tentacles spread everywhere,' said Abdi. 'It is one of the wealthiest insurgencies in Africa.' Meanwhile, the government's foreign backers are losing patience. The European Union and United States have poured well over $7 billion into Somali security — primarily various African Union-led missions — since 2007, according to the EU Institute for Security Studies. The previous AU mission ended in December, but had to be immediately replaced with a new one — with the quip-generating acronym AUSSOM — because Somali forces were still not ready to take over. 'There's a huge amount of donor fatigue. People are asking: 'What have we bought for the last 10 years?' Seeing the army run away and having (to create) AUSSOM was really hard for people,' said the diplomat. Donors, especially Washington, are reluctant to keep funding the AU mission. Mahmood estimates it will scrabble together two-thirds of its funding for 2025: 'Enough to keep things going... but there's clearly a chronic shortfall.' Somalia has struck deals with newer partners like the United Arab Emirates, Qatar and Egypt. Turkiye has deployed about 500 troops, backed by drones, to reinforce security in Mogadishu. But they are interested in protecting investments such as a mooted Turkish spaceport, said Mahmood, rather than leading the fight against Al-Shabab. 'We are staring at a very grim situation,' said Abdi.
Zawya
28-03-2025
- Business
- Zawya
GCC banks drive momentum and transformation with strong growth
DOHA: KPMG in Qatar has released the tenth edition of its GCC Listed Banks' Results Report, providing an in-depth analysis of the financial performance and key indicators of leading commercial banks across the region. Titled Momentum and Transformation, this year's report highlights the sector's resilience, strategic adaptability, and sustained expansion despite global economic shifts. Bringing together insights from Financial Services leaders across KPMG's member firms in the six GCC countries, the report offers valuable perspectives on the evolving banking landscape, emerging industry trends, and financial outlook. By analyzing key performance indicators from the past year, the report aims to support banking leaders in shaping strategies and driving long-term growth. Omar Mahmood (pictured), Head of Financial Services for KPMG in the Middle East, South Asia, Caucasus and Central Asia, and Partner at KPMG in Qatar, commented, 'The GCC banking sector remains a pillar of economic stability and growth, demonstrating resilience in the face of macroeconomic uncertainties. The sector's ability to maintain strong capital positions, enhance asset quality, and embrace digital transformation underscores its commitment to sustainable progress. Looking ahead, we expect a continued focus on managing non-performing loans, cost control, and the integration of AI and ESG principles into banking strategies, ensuring long-term competitiveness and stability.' The report highlights strong asset growth across GCC banks, supported by robust capital adequacy ratios. Profitability saw a notable increase, driven by higher interest margins and disciplined cost control, while net interest margins (NIMs) remained stable despite economic fluctuations. Non-performing loan (NPL) ratios declined, reflecting prudent credit risk management, and cost-to-income ratios remained among the lowest globally, emphasizing continued operational efficiency. Investor confidence has also been reinforced, with bank share prices showing stability in a volatile market. In Qatar's banking sector, this year's report reaffirms Qatar National Bank's position as the largest bank in the GCC by assets, reaching $356bn. Qatar also continues to lead the region with the lowest cost-to-income ratio at 25.6 percent and the highest coverage ratio for stage 3 loans at 85.1 percent, reflecting strong financial resilience. Across the GCC, profitability increased by 10.5 percent, driven by loan book growth, stable interest margins, lower loan impairments, and ongoing cost-efficiency measures. Total assets increased by 9.2 percent, supported by lending to high-quality customers. While net interest margins saw a slight dip of 0.1 percent, the overall NPL ratio improved, decreasing by 0.3 percent to 3.3 percent, signaling a continued conservative approach to credit risk management. Return on Assets (ROA) (1.5 percent in 2023) slightly increased by 0.04 percent compared to the previous year reflecting stable profitability relative to asset growth. Looking ahead, KPMG predicts that the GCC banking sector will continue evolving with an increased focus on AI and automation to enhance operational efficiencies, alongside the strengthening of ESG frameworks to embed sustainability within banking strategies. The rise of regulatory technology (RegTech) is expected to support compliance and risk management, while further industry consolidation will likely foster stronger and more competitive financial institutions. By offering data-driven insights and forward-looking perspectives, KPMG's Momentum and Transformation report serves as a valuable resource for banking leaders, regulators, and policymakers navigating an increasingly complex financial landscape. © Dar Al Sharq Press, Printing and Distribution. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
27-03-2025
- Business
- Zawya
Qatar banks lead GCC region with lowest cost-to-income, highest coverage ratios: KPMG
Qatar banks continue to lead the region with the lowest cost-to-income ratio at 25.6% and the highest coverage ratio for stage 3 loans at 85.1%, reflecting strong financial resilience, according to KPMG. In its 'GCC listed banks' results' report, KPMG noted that in Qatar's banking sector, Qatar National Bank's position has been reaffirmed as the largest bank in the GCC by assets, reaching $356bn. The report highlights strong asset growth across GCC banks, supported by robust capital adequacy ratios. Profitability saw a notable increase, driven by higher interest margins and disciplined cost control, while net interest margins (NIMs) remained stable despite economic fluctuations. Non-performing loan (NPL) ratios declined, reflecting prudent credit risk management, and cost-to-income ratios remained among the lowest globally, emphasisng continued operational efficiency. Investor confidence has also been reinforced, with bank share prices showing stability in a volatile market. Across the GCC, profitability increased by 10.5%, driven by loan book growth, stable interest margins, lower loan impairments, and ongoing cost-efficiency measures, KPMG noted. Total assets increased by 9.2%, supported by lending to high-quality customers. While net interest margins saw a slight dip of 0.1%, the overall NPL ratio improved, decreasing by 0.3% to 3.3%, signalling a continued conservative approach to credit risk management. Return on Assets (ROA) (1.5% in 2023) slightly increased by 0.04% compared to the previous year reflecting stable profitability relative to asset growth. Cost-to-income ratios remained stable compared to 2023 at 39%, reflecting the continued focus on cost reductions and operating efficiency. Moreover, the average coverage ratio for stage 3 loans remained broadly in line with prior year at 67%, highlighting the listed banks' cautious provisioning approach. Looking ahead, KPMG predicts that the GCC banking sector will continue evolving with an increased focus on AI and automation to enhance operational efficiencies, alongside the strengthening of ESG frameworks to embed sustainability within banking strategies. The rise of regulatory technology (RegTech) is expected to support compliance and risk management, while further industry consolidation will likely foster stronger and more competitive financial institutions. Additionally, balance sheet growth is projected to accelerate, driven by strategic investments and effective risk management, ensuring sustained financial stability and resilience. Omar Mahmood, Head of Financial Services for KPMG in the Middle East, South Asia, Caucasus and Central Asia, and partner at KPMG in Qatar, commented, "The GCC banking sector remains a pillar of economic stability and growth, demonstrating resilience in the face of macroeconomic uncertainties. The sector's ability to maintain strong capital positions, enhance asset quality, and embrace digital transformation underscores its commitment to sustainable progress. 'Looking ahead, we expect a continued focus on managing non-performing loans, cost control, and the integration of AI and ESG principles into banking strategies, ensuring long-term competitiveness and stability." © Gulf Times Newspaper 2022 Provided by SyndiGate Media Inc. ( Pratap John
Zawya
26-03-2025
- Business
- Zawya
GCC banks drive momentum and transformation with strong growth: KPMG Report
Doha, Qatar – KPMG in Qatar has released the tenth edition of its GCC Listed Banks' Results Report, providing an in-depth analysis of the financial performance and key indicators of leading commercial banks across the region. Titled Momentum and Transformation, this year's report highlights the sector's resilience, strategic adaptability, and sustained expansion despite global economic shifts. Bringing together insights from Financial Services leaders across KPMG's member firms in the six GCC countries, the report offers valuable perspectives on the evolving banking landscape, emerging industry trends, and financial outlook. By analyzing key performance indicators from the past year, the report aims to support banking leaders in shaping strategies and driving long-term growth. Omar Mahmood, Head of Financial Services for KPMG in the Middle East, South Asia, Caucasus and Central Asia, and Partner at KPMG in Qatar, commented,"The GCC banking sector remains a pillar of economic stability and growth, demonstrating resilience in the face of macroeconomic uncertainties. The sector's ability to maintain strong capital positions, enhance asset quality, and embrace digital transformation underscores its commitment to sustainable progress. Looking ahead, we expect a continued focus on managing non-performing loans, cost control, and the integration of AI and ESG principles into banking strategies, ensuring long-term competitiveness and stability." The report highlights strong asset growth across GCC banks, supported by robust capital adequacy ratios. Profitability saw a notable increase, driven by higher interest margins and disciplined cost control, while net interest margins (NIMs) remained stable despite economic fluctuations. Non-performing loan (NPL) ratios declined, reflecting prudent credit risk management, and cost-to-income ratios remained among the lowest globally, emphasizing continued operational efficiency. Investor confidence has also been reinforced, with bank share prices showing stability in a volatile market. In Qatar's banking sector, this year's report reaffirms Qatar National Bank's position as the largest bank in the GCC by assets, reaching USD 356 billion. Qatar also continues to lead the region with the lowest cost-to-income ratio at 25.6 percent and the highest coverage ratio for stage 3 loans at 85.1 percent, reflecting strong financial resilience. Across the GCC, profitability increased by 10.5 percent, driven by loan book growth, stable interest margins, lower loan impairments, and ongoing cost-efficiency measures. Total assets increased by 9.2 percent, supported by lending to high-quality customers. While net interest margins saw a slight dip of 0.1 percent, the overall NPL ratio improved, decreasing by 0.3 percent to 3.3 percent, signaling a continued conservative approach to credit risk management. Return on Assets (ROA) (1.5 percent in 2023) slightly increased by 0.04 percent compared to the previous year reflecting stable profitability relative to asset growth. Cost-to-income ratios remained stable compared to 2023 at 39%, reflecting the continued focus on cost reductions and operating efficiency. Moreover, the average coverage ratio for stage 3 loans remained broadly in line with prior year at 67%, highlighting the listed banks' cautious provisioning approach. Looking ahead, KPMG predicts that the GCC banking sector will continue evolving with an increased focus on AI and automation to enhance operational efficiencies, alongside the strengthening of ESG frameworks to embed sustainability within banking strategies. The rise of regulatory technology (RegTech) is expected to support compliance and risk management, while further industry consolidation will likely foster stronger and more competitive financial institutions. Additionally, balance sheet growth is projected to accelerate, driven by strategic investments and effective risk management, ensuring sustained financial stability and resilience. By offering data-driven insights and forward-looking perspectives, KPMG's Momentum and Transformation report serves as a valuable resource for banking leaders, regulators, and policymakers navigating an increasingly complex financial landscape. For more information, please contact: Huda Ibrahim – hudai@ Bassel Abou Ayash – babouayash@ For additional details about KPMG in Qatar and our privacy policy, visit About KPMG in Qatar KPMG is a global organization of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited ('KPMG International') operate and provide professional services. 'KPMG' is used to refer to individual member firms within the KPMG organization or to one or more member firms collectively. KPMG firms operate in 142 countries and territories with more than 275,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients. For more detail about our structure, please visit
