Turkey's President Recep Tayyip Erdogan, centre-right, visits Kahramanmaras days after the February 6 earthquake. AP
Turkey's President Recep Tayyip Erdogan, centre-right, visits Kahramanmaras days after the February 6 earthquake. AP
Turkey's President Recep Tayyip Erdogan, centre-right, visits Kahramanmaras days after the February 6 earthquake. AP
Turkey's President Recep Tayyip Erdogan, centre-right, visits Kahramanmaras days after the February 6 earthquake. AP

Turkey's post-earthquake recovery tests Erdogan's policies and popularity


  • English
  • Arabic

The three months that have passed since devastating earthquakes laid waste to cities across southern Turkey have seen progress towards President Recep Tayyip Erdogan’s promise to “rebuild from the ground up”.

The scale of the task ahead, however, remains no less daunting after the clearing of rubble and the unveiling of new housing.

Rebuilding the earthquake zone is taking place as Turkey faces elections on May 14 and the effect of the disaster on voting behaviour has been widely debated. Polls show the race could be the toughest of Mr Erdogan's 20-year rule.

People walk in front of a picture of Turkish oppoisiton IYI Parti party leader Meral Aksener in Nurdagi district of Gaziantep, Turkey. EPA
People walk in front of a picture of Turkish oppoisiton IYI Parti party leader Meral Aksener in Nurdagi district of Gaziantep, Turkey. EPA

The economic cost of the February 6 quakes is estimated at $103.6 billion, or about 10 per cent of Turkey’s GDP. The cost, revealed in a March report from the presidency’s strategy and budget office, covers damage to buildings, infrastructure, industry, insurance and the ensuing macroeconomic impact.

Then there is the human cost. The most recent official estimate is that 50,783 people lost their lives in an area covering 110,000 square kilometres, which is roughly the size of Bulgaria.

About 3 million people initially fled the 11 provinces hit by the disaster, leaving more than 300,000 buildings destroyed or unsafe. It is unclear how many have returned.

In the days immediately after the disaster, Mr Erdogan pledged to repair the destruction within a year — a commitment that seemed fanciful given the mammoth reconstruction effort and expenditure required.

On April 22, the President unveiled the first new homes — 10 village houses in Nurdagi, close to the epicentre in Kahramanmaras province.

“We’ve started the construction of more than 105,000 houses and completed the ground-breaking of almost half of them,” Mr Erdogan said.

A photo taken with a drone shows a view of the city center after some wreckage were cleaned in Hatay, Turkey. EPA
A photo taken with a drone shows a view of the city center after some wreckage were cleaned in Hatay, Turkey. EPA

He has promised to rebuild 650,000 homes, including 319,000 within a year. The new buildings will be no more than four storeys and located on ground that will mitigate the effects of future tremors.

But the government’s timetable seems unrealistic and some say it has underestimated the magnitude of reconstruction.

Reconstruction and prevention

Burcu Aydin Ozudogru, a director at the Tepav think tank in Ankara, said the earthquakes would have “a significant and long-term negative impact on the Turkish economy, especially on growth, employment, inflation, fiscal and financial accounts, wealth and poverty”.

Tepav estimated the cost of the recovery will reach $150 billion over a five-year period and slow Turkey’s economic growth by 1.2 per cent this year.

The earthquakes have also focused attention on other at-risk parts of the country, notably Istanbul, Turkey’s mega-city of 16 million. With about 90,000 structures at risk of collapse should a big tremor hit, the city needs to spend at least $19 billion to fortify its building stock, according to Mayor Ekrem Imamoglu.

In a report released this week, Turkey’s Chamber of Architects said reconstruction and recovery efforts have failed to address the need to protect public health, create safe living conditions and meet essential needs.

People ride past pictures of the Turkish presidential candidate Kemal Kilicdaroglu, leader of the opposition Republican People's Party (CHP). EPA
People ride past pictures of the Turkish presidential candidate Kemal Kilicdaroglu, leader of the opposition Republican People's Party (CHP). EPA

It also said that reconstruction projects worth billions of lira had been allocated without following procurement laws.

“By ignoring public and legal supervision, the planning and zoning process in the region began to be restructured, focusing on the transformation of public resources, cities, natural and cultural utilities ​​into investment instruments,” the report said.

The international community, meanwhile, has rallied to provide financial support.

At an EU donors’ conference in March $7.69 billion was pledged for reconstruction, including $1 billion for Syria. The European Bank for Reconstruction and Development and the World Bank have offered loans worth a total of $3.4 billion.

The question remains how Turkey will make up the shortfall. Mr Erdogan’s unconventional economic policies and the erosion of the rule of law have scared off foreign investors and any foreign borrowing would attract high rates.

Hard-hit domestic banks are already struggling to cope with a series of measures forced on them by the government in a bid to buoy the faltering economy.

Compounding a dire economic situation, the cost burden of the earthquakes and Turkey’s reliance on overseas financing to rebuild homes, factories, roads and most other aspects of life has led to questions about the country’s status in the world.

Mr Erdogan has long championed the view of Ankara as a global leader, steering its own course in international affairs and offering an alternative to European and US leadership.

“There’s nothing wrong with asking for help in a time of need,” said Namik Tan, Turkey’s former Washington ambassador who is standing as an opposition parliamentary candidate in this month’s election.

“But it was scarcely a few months before the earthquakes that we were bragging about how Turkey ‘provided the most humanitarian aid in the world [based on per capita income]'.

“Now we hear from our government that the least developed countries have been digging into their pockets for us. Now we see our own near bankruptcy, heretofore skilfully concealed, poking its ugly head out.”

People get food aid at the market of AFAD, the Turkish Disaster and Emergency Management Presidency in Nurdagi district of Gaziantep. EPA
People get food aid at the market of AFAD, the Turkish Disaster and Emergency Management Presidency in Nurdagi district of Gaziantep. EPA

The most heavily affected provinces, with the exception of Hatay, are under the control of the ruling Justice and Development Party (AKP). How Mr Erdogan’s supporters will react to the government’s post-earthquake policies at the ballot box will not become apparent until election day.

“I think many AKP voters would agree with the point that the government was ill-equipped and insufficient in its response, especially within the first 72 hours,” said Berk Esen, assistant professor of political science at Sabanci University in Istanbul.

“That doesn’t mean that it’s going to lead to a major electoral decline for the party in the region but I think it was a heavy blow and it’s already impacted the AKP government economically.

“They were planning to distribute more resources in the lead up to the election and the earthquake simply suffocated those efforts and depleted their resources, which is why the regime has become even weaker than it otherwise would have been.”

The biog

Name: Abeer Al Shahi

Emirate: Sharjah – Khor Fakkan

Education: Master’s degree in special education, preparing for a PhD in philosophy.

Favourite activities: Bungee jumping

Favourite quote: “My people and I will not settle for anything less than first place” – Sheikh Mohammed bin Rashid.

Islamophobia definition

A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.

NYBL PROFILE

Company name: Nybl 

Date started: November 2018

Founder: Noor Alnahhas, Michael LeTan, Hafsa Yazdni, Sufyaan Abdul Haseeb, Waleed Rifaat, Mohammed Shono

Based: Dubai, UAE

Sector: Software Technology / Artificial Intelligence

Initial investment: $500,000

Funding round: Series B (raising $5m)

Partners/Incubators: Dubai Future Accelerators Cohort 4, Dubai Future Accelerators Cohort 6, AI Venture Labs Cohort 1, Microsoft Scale-up 

While you're here
Jawan
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EAtlee%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Shah%20Rukh%20Khan%2C%20Nayanthara%2C%20Vijay%20Sethupathi%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E4%2F5%3C%2Fp%3E%0A
The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

EA Sports FC 26

Publisher: EA Sports

Consoles: PC, PlayStation 4/5, Xbox Series X/S

Rating: 3/5

THE%20SWIMMERS
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ESally%20El-Hosaini%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3ENathalie%20Issa%2C%20Manal%20Issa%2C%20Ahmed%20Malek%20and%20Ali%20Suliman%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E4%2F5%3C%2Fp%3E%0A
THE SIXTH SENSE

Starring: Bruce Willis, Toni Collette, Hayley Joel Osment

Director: M. Night Shyamalan

Rating: 5/5

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

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.”

Muslim Council of Elders condemns terrorism on religious sites

The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.

It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.

“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.

The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.

Classification of skills

A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation. 

A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.

The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000. 

The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%206.5-litre%20V12%20and%20three%20electric%20motors%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E1%2C015hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E1%2C500Nm%20(estimate)%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%3C%2Fstrong%3E%20Eight-speed%20dual-clutch%20auto%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Early%202024%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh2%20million%20(estimate)%3C%2Fp%3E%0A
The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

Updated: May 08, 2023, 2:32 AM