UN human rights chief Michelle Bachelet expressed concern about deaths and widespread detentions in oil-rich Khuzestan. AP
UN human rights chief Michelle Bachelet expressed concern about deaths and widespread detentions in oil-rich Khuzestan. AP
UN human rights chief Michelle Bachelet expressed concern about deaths and widespread detentions in oil-rich Khuzestan. AP
UN human rights chief Michelle Bachelet expressed concern about deaths and widespread detentions in oil-rich Khuzestan. AP

Amid violent Khuzestan crackdown, Iran rejects UN calls to address water shortage


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Iran has dismissed criticism by the UN's human rights chief on the killing of protesters during demonstrations over water shortages.

Meanwhile, rallies in support of the protests in Khuzestan province spread to the north-west of the country on Saturday, according to videos posted on social media.

UN High Commissioner for Human Rights Michelle Bachelet on Friday expressed concern about deaths, wounded protesters and widespread detentions over the past week in the oil-rich province in the country's south-west.

Iran's Foreign Ministry spokesman Saeed Khatibzadeh said in a statement carried by Iranian media that Ms Bachelet's "interventionist" and "non-expert and biased comments on the management of the country's water resources were not within the scope of commissioner's responsibilities".

In addition to the drought, Mr Khatibzadeh said US sanctions had "prevented the transfer of technology to and investment in Khuzestan's water sector".

Iranians have taken to the streets for more than a week to vent their anger about the shortages that have come during the country's worst drought in half a century and as the economy suffers under the weight of US sanctions and the Covid-19 pandemic.

Social media videos on Saturday showed groups of demonstrators in the north-western city of Tabriz chanting slogans in support of protesters in Khuzestan. Reuters could not verify the footage.

Late on Thursday, one youth was shot dead while seven were wounded during solidarity demonstrations in neighbouring Lorestan province, a police official said, blaming "counter-revolutionaries" for the violence.

Videos on social media on Friday showed people marching in the city of Aligudarz and chanting slogans against Iranian supreme leader Ali Khamenei.

At least one policeman and three young men were shot dead in earlier protests, according to Iranian officials who blamed "rioters" for the deaths.

However, Amnesty International said at least eight people had been killed during the unrest.

The Human Rights Activists News Agency said on Saturday that it had been able to identify 10 killed and 102 detained.

Witnesses spoke of continued heavy security presence in Khuzestan on Saturday.

"Mobile internet is still down and there are security forces everywhere," a resident of the provincial capital of Ahvaz, who asked not to be named, told Reuters.

Khamenei on Friday called on officials to deal with the crisis, saying people could not be blamed for protesting over water shortages.

Mirroring Khamenei's position, President Hassan Rouhani said on Saturday that "with the exception of a few, people are exercising their legal right to protest."

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.”

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Updated: July 27, 2021, 7:07 AM