As Turkey prepares for local elections this Sunday, Istanbul mayor Ekrem Imamoglu addressed crowds packed into a small square in the city’s working-class Kasimpasa neighbourhood.
“Leader again! My leader is here,” shouted members of the crowd, wrapped up against the cold in scarves and hats. Against a backdrop of political party flags, many queued afterwards for free meals distributed from a van.
There is fierce competition for the position of the mayor of Istanbul, which President Recep Tayyip Erdogan, 70, and his Justice and Development Party (AKP) are determined to win back after losing it to Mr Imamoglu, 52, and the opposition Republican People’s Party (CHP) in the last local elections in 2019.
The mayor of Istanbul has one of the most important roles in Turkey, responsible for the country’s cultural and financial centre and a multibillion-dollar budget.
In recent weeks, there has been a slate of new museum, park, and metro line openings, and promotional banners promising firmer action on everything from bus services to combating domestic violence plaster every public space.
Mr Imamoglu, who is running for a second term, and the AKP’s candidate, former government minister Murat Kurum, are competing to claim responsibility for improving services for the urban centre’s 16 million residents, at a time of double-digit inflation and widespread economic hardship.
Istanbul’s importance means that whoever runs the city can establish a significant power base, observers say. If Mr Imamoglu is re-elected as mayor, he may well run in Turkey’s next presidential election scheduled for 2028.
“The person that rules Istanbul is generally able to establish himself a political base, which then translates into power at the national scale,” said Sinan Ulgen, a former Turkish diplomat and director of Edam, an Istanbul-based think tank.
The vote has consequences on the national level for whoever wins. Yet both the mayoral candidates and those competing for smaller, local district municipalities are campaigning on local issues.
In the Fatih district, which includes Istanbul’s tourist-packed historical peninsula, CHP candidate Mahir Polat has pledged to build more earthquake-resistant homes and renovate a local bazaar.
“So far, we have been carrying out an election campaign that is unconventional but very simple, focusing only on local government problems in Fatih,” said Mr Polat, at an interview in his campaign office last week.
“This has had a serious impact, in contrast with the AKP’s policies, which no longer give society much hope.”
The National approached Mr Polat’s main competitor from the AKP for an interview but did not receive a response.
For the position of Istanbul mayor, Mr Kurum and Mr Imamoglu are almost neck and neck in pollsters’ predictions, and few are willing to call the vote for Istanbul publicly.
The electorate is polarised and an increasing number of disillusioned young people are disengaging from the vote in a country where politics is almost a national sport, observers say.
“The problem of young voters usually, unfortunately, in today's Turkey is that they either go far left or far right, or they are disinterested in politics,” said Gulsen Ergun, a board member of Vote and Beyond, a civil society group encouraging participation in democratic processes.
Voters in Istanbul cite high levels of immigration, traffic congestion and fears that the city is not prepared for a long-predicted major earthquake as their main concerns.
Among issues is western nations funding refugee aid programmes in Turkey to stop them crossing into Europe.
“They [refugees] get free medicine and free aid. Now we can’t even buy an aspirin from the pharmacy if we don’t have money,” said Tuna Ozturk, who attended Mr Imamoglu’s Kasimpasa rally.
Her fears reflect widespread beliefs in Turkey – rarely grounded in truth – that refugees receive better services from authorities than Turkish citizens.
Devotees of Mr Erdogan and the AKP are not happy either. Voters at a rally held by Mr Kurum and Mr Erdogan at Istanbul’s former airport complex at the weekend said they had been left disappointed by five years of opposition rule in the city.
“I will vote for Murat Kurum because I believe he is going to work hard,” said Dorsun Ergun, 51, a leatherworker from Istanbul’s Zeytinburnu district. “The current mayor [Imamoglu] does not work, and he did not keep his promises to us.”
Both candidates face a range of challenges. Mr Imamoglu is part of a divided national opposition to Mr Erdogan and the AKP.
Other parties including the pro-Kurdish DEM Party and the nationalist Good Party are fielding their own candidates in the mayoral election, which may split the anti-AKP vote and lessen Mr Imamoglu's chances at re-election.
Meanwhile, Mr Kurum may suffer from disillusioned AKP voters switching to more conservative parties such as the Islamist New Welfare Party.
He has also faced criticism during the campaign for lacking charisma, and has made gaffes during media interviews, such as admitting to driving a car without a licence.
“What might hurt the AKP is that Erdogan is not on the ballot – he has a unique ability to mobilise people,” said Orcun Selcuk, a political scientist.
“If the opposition loses in Istanbul, it’s because of its fragmentation. If Kurum loses, it could also be because of the New Welfare Party candidate.”
For an election in which he is not even running, Mr Erdogan has campaigned almost non-stop for weeks, addressing rallies across Turkey.
Mr Erdogan attracted attention earlier this month when he claimed that Sunday’s vote will be the last election he will witness as President – suggesting that he will retire from politics within the next five years.
According to the Turkish constitution, a president cannot run for more than two terms, although a loophole allows a third if parliament calls for elections.
The hint at his political career coming to an end may have been a strategy to try to encourage AKP voters to come out to the polls, at a time when it remains unclear who will lead the party when Mr Erdogan eventually steps away from politics.
The President, rather than mayoral candidate Mr Kurum, appeared to be the main draw for many at the AKP’s weekend rally.
“We will stand by President Erdogan until the end; we know that he stands with us, not just today, but always,” said Aisha Koc, 44, a public relations worker. “In other places it’s the case that the people follow their leader, but here he follows us. He does what we want of him.”
Sinan Ulgen, the Turkish analyst, thinks it unlikely that Istanbul will witness a repeat of 2019’s local elections vote, when the AKP disputed Imamoglu’s win at the ballot boxes. That prompted a second round of voting in which Imamoglu won again – with a larger margin.
“I don’t think we will see this again,” Mr Ulgen said. “That mistake was made once.”
Additional reporting by Kerem Yalciner
Karwaan
Producer: Ronnie Screwvala
Director: Akarsh Khurana
Starring: Irrfan Khan, Dulquer Salmaan, Mithila Palkar
Rating: 4/5
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The struggle is on for active managers
David Einhorn closed out 2018 with his biggest annual loss ever for the 22-year-old Greenlight Capital.
The firm’s main hedge fund fell 9 per cent in December, extending this year’s decline to 34 percent, according to an investor update viewed by Bloomberg.
Greenlight posted some of the industry’s best returns in its early years, but has stumbled since losing more than 20 per cent in 2015.
Other value-investing managers have also struggled, as a decade of historically low interest rates and the rise of passive investing and quant trading pushed growth stocks past their inexpensive brethren. Three Bays Capital and SPO Partners & Co., which sought to make wagers on undervalued stocks, closed in 2018. Mr Einhorn has repeatedly expressed his frustration with the poor performance this year, while remaining steadfast in his commitment to value investing.
Greenlight, which posted gains only in May and October, underperformed both the broader market and its peers in 2018. The S&P 500 Index dropped 4.4 per cent, including dividends, while the HFRX Global Hedge Fund Index, an early indicator of industry performance, fell 7 per cent through December. 28.
At the start of the year, Greenlight managed $6.3 billion in assets, according to a regulatory filing. By May, the firm was down to $5.5bn.
Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
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Countries offering golden visas
UK
Innovator Founder Visa is aimed at those who can demonstrate relevant experience in business and sufficient investment funds to set up and scale up a new business in the UK. It offers permanent residence after three years.
Germany
Investing or establishing a business in Germany offers you a residence permit, which eventually leads to citizenship. The investment must meet an economic need and you have to have lived in Germany for five years to become a citizen.
Italy
The scheme is designed for foreign investors committed to making a significant contribution to the economy. Requires a minimum investment of €250,000 which can rise to €2 million.
Switzerland
Residence Programme offers residence to applicants and their families through economic contributions. The applicant must agree to pay an annual lump sum in tax.
Canada
Start-Up Visa Programme allows foreign entrepreneurs the opportunity to create a business in Canada and apply for permanent residence.
The Little Things
Directed by: John Lee Hancock
Starring: Denzel Washington, Rami Malek, Jared Leto
Four stars
The Bio
Hometown: Bogota, Colombia
Favourite place to relax in UAE: the desert around Al Mleiha in Sharjah or the eastern mangroves in Abu Dhabi
The one book everyone should read: 100 Years of Solitude by Gabriel Garcia Marquez. It will make your mind fly
Favourite documentary: Chasing Coral by Jeff Orlowski. It's a good reality check about one of the most valued ecosystems for humanity
What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.
Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
UAE currency: the story behind the money in your pockets
Juliet, Naked
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Starring: Chris O'Dowd, Rose Byrne, Ethan Hawke
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Fourth Arab Economic and Social Development Summit
As he spoke, Mr Aboul Gheit repeatedly referred to the need to tackle issues affecting the welfare of people across the region both in terms of preventing conflict and in pushing development.
Lebanon is scheduled to host the fourth Arab Economic and Social Development Summit in January that will see regional leaders gather to tackle the challenges facing the Middle East. The last such summit was held in 2013. Assistant Secretary-General Hossam Zaki told The National that the Beirut Summit “will be an opportunity for Arab leaders to discuss solely economic and social issues, the conference will not focus on political concerns such as Palestine, Syria or Libya". He added that its slogan will be “the individual is at the heart of development”, adding that it will focus on all elements of human capital.
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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.”
UAE currency: the story behind the money in your pockets
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