Tunisians will vote in a referendum on July 25 for a new constitution
Tunisians will vote in a referendum on July 25 for a new constitution
Tunisians will vote in a referendum on July 25 for a new constitution
Tunisians will vote in a referendum on July 25 for a new constitution

Tunisia's Kais Saied reveals draft of new constitution with sweeping changes to government


Erin Clare Brown
  • English
  • Arabic

Tunisia's President Kais Saied revealed on Thursday the proposed draft of a new constitution, which will be put to a referendum vote on July 25.

The new document, released in the official gazette, makes sweeping changes to Tunisia's governmental structure as it enshrines a purely presidential system that gives greater powers to the executive and introduces a new legislative body, the National Council of Regions and Districts.

If approved by popular vote, the document will replace Tunisia's historic 2014 constitution, composed over two years of negotiations in a constituent assembly and national dialogue after the 2011 revolution that ousted Zine El Abidine Ben Ali from his 23-year rule over the country.

Overhauling the 2014 constitution has been a primary focus for Mr Saied, a former adjunct constitutional law professor, who says it is a “course correction of the revolutionary path”.

After two years in the presidency, Mr Saied seized sole control of the government last July during a Covid crisis and dysfunction in Parliament.

He has since made moves to consolidate power in his own hands, including dissolving Parliament, suspending the constitution and reappointing the high judicial council and the independent electoral commission.

The proposed new constitution further strengthens the role of the president, who would alone control the executive branch, and would appoint a first minister to assist him — a shift from the current power-sharing structure between the president, prime minister and speaker of Parliament.

Ibrahim Bouderbela, a member of the committee that drafted the new document, told The National that the new system would enable greater accountability in government.

“In past governments, political parties that were elected did not assume responsibility for their actions. In the new system, the president will be at the head of the government and assume responsibility in failure and success alike,” he said.

The document also introduces a new legislative body, the National Council of Regions and Districts, which would work alongside Parliament to approve or reject proposed legislation put forward by the president.

The council would comprise members appointed from a series of larger, local councils, a long-time political vision of Mr Saied.

“Through this constitution, the Tunisian people will find themselves included in the decision-making process in the country,” Mr Bouderbela said.

The new document was drafted over the course of about three weeks in May and June by a small committee of legal scholars selected by Mr Saied.

Several key players, including the General Tunisian Labour Union (UGTT) — part of the quartet that won the 2015 Nobel Peace Prize for their role in salvaging the 2014 constitution — and the association of deans of the law schools, rejected their appointment to the constitutional advisory committee, saying the dialogue was not inclusive.

“We reject any formal dialogue in which roles are determined unilaterally and from which civil and political forces are excluded,” UGTT spokesman Sami Tahri said.

Earlier this year, a “digital consultation” to inform the constitution-writing process, which surveyed Tunisians about their opinions on social, political and economic issues, attracted a paltry turnout.

“The future of Tunisia is in the hands of Tunisians and it is their intensive participation that will pave the way towards a new stage in the history of Tunisia based on the real popular will and not on fake legitimacy,” Mr Saied said in January at the consultation’s launch.

Less than 7 per cent of eligible voters participated.

Opposition to Mr Saied and his proposed constitution has grown in recent months. Many political parties are calling for a boycott of the referendum in hopes of stripping it of its legitimacy.

The outcome of the vote, regardless of turnout, will be legally binding.

Mr Bouderbela said: “In order to secure legitimacy, I believe we'd need to see at least half of eligible voters participate.”

The Independent High Electoral Commission reported that 9.2 million voters have been registered in an election that is set to cost 50 million Tunisian dinars ($16.2 million).

The proposed constitution and the referendum to ratify it come as Tunisia's economy continues a downwards spiral, with inflation and prices of consumer goods rising, purchasing power on the decline and state finances in ruins.

Last week, the International Monetary Fund said it would enter formal negotiations with Tunisia over a multibillion-dollar loan that could temporarily shore up the country's faltering foreign currency reserves and help it pay off its debts.

To secure the loan, Mr Saied's government has put forward a plan that would slash subsidies for food and fuel, trim the public sector wage bill, and privatise loss-making state-owned enterprises.

Rejection of the terms of the IMF deal has been widespread. A nationwide strike of hundreds of thousands of public sector workers on June 16 grounded flights, stalled public transport and closed government offices. The UGTT has called for a second strike in the coming days.

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The five pillars of Islam

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2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

HAJJAN
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Global state-owned investor ranking by size

1.

United States

2.

China

3.

UAE

4.

Japan

5

Norway

6.

Canada

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Singapore

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Australia

9.

Saudi Arabia

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South Korea

The candidates

Dr Ayham Ammora, scientist and business executive

Ali Azeem, business leader

Tony Booth, professor of education

Lord Browne, former BP chief executive

Dr Mohamed El-Erian, economist

Professor Wyn Evans, astrophysicist

Dr Mark Mann, scientist

Gina MIller, anti-Brexit campaigner

Lord Smith, former Cabinet minister

Sandi Toksvig, broadcaster

 

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: June 14, 2023, 6:52 AM