Iraq's leaders have criticised the country’s political stalemate and inability to form a new government six months after nationwide elections were held.
The country's post-election period often produces deadlock, with power-sharing discussions between political blocs typically lasting about five months or longer. However, this time round those crucial talks are not happening and sporadic meetings between parties have not come close to achieving compromise.
A dispute between the two largest political blocs has led to a boycott of parliament, meaning quorum cannot be reached and voting for a new president has repeatedly failed. Iraq's parliament needs to agree on a president, who then selects the largest bloc in parliament within 15 days, which in turn can form the government.
“The current political blockage in completing constitutional requirements and forming a new government has become a worrying and unacceptable matter, and if it continues, will lead the country into a dangerous maze,” outgoing Iraqi President Barham Salih, said late on Tuesday.
Mr Salih, among other politicians, spoke in Baghdad during a ceremony marking 41 years since the establishment of the Badr Organisation, a Shiite party that was formerly a militia organisation, set up by Iran's Islamic Revolutionary Guard Corps. The Badr Organisation remains linked to a number of militias within Iraq.
Early elections were held last October to meet the demands of anti-government protesters who staged months of mass demonstrations in 2019 and were killed in their hundreds, while thousands were injured.
They called for an overhaul of the political system and for an end to corruption and nepotism.
“The call for early elections was a solution to achieve political and social stability that ran into obstacles that should not be ignored,” Mr Salih said, adding that it was possible to overcome those issues with unity.
“Protecting the country requires a serious pause to address the mistakes that have accumulated due to the crumbling of the ruling system and to create reform,” he said.
For his part, Prime Minister Mustafa Al Kadhimi said Iraq’s political crisis is a result of the failure to form a new government.
“We strive to find solutions and citizens are worried about the future from the consequences of the political obstruction that hinders their daily life,” he said.
With no government, Iraq's parliament cannot pass a budget for the year. By law, this means that spending for vital investments such as electricity and water infrastructure is based on a fraction of the previous budget, which was based on much lower oil prices.
“We must admit that there are constitutional differences and inconsistencies in the administration of the state,” Mr Al Kadhimi said, adding that confidence must be restored to overcome the obstacles.
Populist cleric Moqtada Al Sadr was the biggest winner in the vote on October 10, with 73 seats in the 329-member parliament, but his Iran-backed rivals have frustrated his government formation efforts.
Mr Al Sadr joined forces with powerful parties including the Kurdistan Democratic Party (KDP) and the Sovereignty Coalition led by parliamentary Speaker Mohammed Al Halbousi.
For his part, Mr Al Halbousi said the new government will be formed soon.
“We must all strive, side by side, to work to strengthen state institutions, and to affirm our belief in it,” he said.
“We are going through challenges at the local, regional and international levels, and everyone knows the challenges of the international crisis that the world is witnessing and its impact on food security and the economy,” he said.
Iraq is ready to move forward and solve its problems, he said.
THE BIO: Martin Van Almsick
Hometown: Cologne, Germany
Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)
Favourite dessert: Umm Ali with dark camel milk chocolate flakes
Favourite hobby: Football
Breakfast routine: a tall glass of camel milk
All Black 39-12 British & Irish Lions
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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.”
Profile
Company: Libra Project
Based: Masdar City, ADGM, London and Delaware
Launch year: 2017
Size: A team of 12 with six employed full-time
Sector: Renewable energy
Funding: $500,000 in Series A funding from family and friends in 2018. A Series B round looking to raise $1.5m is now live.
The specs
Engine: 2.0-litre 4-cylinder turbo hybrid
Transmission: eight-speed automatic
Power: 390bhp
Torque: 400Nm
Price: Dh340,000 ($92,579
Dunki
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