Hoshyar Zebari, disqualified candidate for Iraq's presidency, addresses a news conference in Baghdad, Iraq, on February 13, 2022. Reuters
Hoshyar Zebari, disqualified candidate for Iraq's presidency, addresses a news conference in Baghdad, Iraq, on February 13, 2022. Reuters
Hoshyar Zebari, disqualified candidate for Iraq's presidency, addresses a news conference in Baghdad, Iraq, on February 13, 2022. Reuters
Hoshyar Zebari, disqualified candidate for Iraq's presidency, addresses a news conference in Baghdad, Iraq, on February 13, 2022. Reuters

Iraqi political veteran Hoshyar Zebari barred from presidential race


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Iraq's former finance minister Hoshyar Zebari has been barred from running for the presidency after the country’s Federal Supreme Court said he did not fulfil the legal criteria.

Mr Zebari stands accused of administrative corruption including alleged misuse of public funds, which led to him being dismissed from office in 2016.

He says the charges are politically motivated, but last week, the federal court suspended his candidacy.

The move is a temporary setback for the Kurdish Democratic Party, which Mr Zebari is part of. The KDP is one of two leading parties in the semi-autonomous Kurdish region of Iraq and is vying for the presidency with its rival, the Patriotic Union of Kurdistan.

Shiite cleric Moqtada Al Sadr’s coalition, which secured the largest number of seats in parliament following October’s election, has allied with the KDP and two leading Sunni political parties, Taqadum and Azm.

That puts the political alliance in pole position to form the largest bloc in parliament, which is essential for forming the next government.

But Iraq’s constitution requires parliament to select a president, who must then choose the largest bloc to form a government. The supreme court's move to bar Mr Zebari therefore represents another delay in the government formation process.

The rival alliance, known as the Coordination Framework — mainly comprising Shiite political parties, including some linked to Iran ― has been strongly contesting the election result, claiming that the poll was marred by fraud.

The UN said that Iraq’s election was “technically sound” and called on all parties to respect the results.

Some members of the Coordination Framework, including MP Alia Nsayyif, who is allied to former prime minister Nouri Al Maliki, have warned that violence could break out if government formation did not reflect their claimed electoral gains.

Threats have also come from Shiite militia groups linked to some of the main parties in the Coordination Framework, including Hadi Al Amiri’s Fatah bloc, which has played a co-ordinating role with a number of Iran-backed armed groups.

Mr Zebari was tipped as one of two front-runners out of a total of 25 candidates for the presidency. The other is incumbent President Barham Salih of the KDP's rival party, the Patriotic Union of Kurdistan.

Earlier this month, four parliamentarians filed a petition to the federal court demanding Mr Zebari's exclusion from the presidential race, accusing him of financial and administrative corruption.

Iraq's parliament had been due to vote on a new head of state last Monday but cancelled the vote because it lacked the quorum to hold a session after many MPs said they would boycott it over competing demands over presidential candidates.

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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.”

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Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

Napoleon
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Humaira Tasneem (c), Chamani Senevirathne (vc), Subha Srinivasan, NIsha Ali, Udeni Kuruppuarachchi, Chaya Mughal, Roopa Nagraj, Esha Oza, Ishani Senevirathne, Heena Hotchandani, Keveesha Kumari, Judith Cleetus, Chavi Bhatt, Namita D’Souza.

MATCH INFO

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The specs
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  • Torque: 760nm
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Updated: February 14, 2022, 7:51 AM