Iraqi Foreign Minister Fuad Hussein, centre, Egyptian Foreign Minister Sameh Shoukry, right, and Jordanian Foreign Minister Ayman Safadi at a press conference in Baghdad. EPA
Iraqi Foreign Minister Fuad Hussein, centre, Egyptian Foreign Minister Sameh Shoukry, right, and Jordanian Foreign Minister Ayman Safadi at a press conference in Baghdad. EPA
Iraqi Foreign Minister Fuad Hussein, centre, Egyptian Foreign Minister Sameh Shoukry, right, and Jordanian Foreign Minister Ayman Safadi at a press conference in Baghdad. EPA
Iraqi Foreign Minister Fuad Hussein, centre, Egyptian Foreign Minister Sameh Shoukry, right, and Jordanian Foreign Minister Ayman Safadi at a press conference in Baghdad. EPA

Iraq discusses 'big regional challenges' with Jordan and Egypt


Sinan Mahmoud
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Iraq hosted a meeting with Jordan and Egypt on Monday to discuss the “big challenges” faced by the region.

The three countries have been meeting since 2020 to try to hammer out co-operation deals, mainly in the energy sector, but no major progress has yet been made.

On Monday, they also discussed Russia's war in Ukraine and its impact on politics, economy, energy and how to manage the energy crisis, Iraqi Foreign Minister Fuad Hussein said.

“We are facing numerous and big challenges at this period of time and this stage,” Mr Hussein told a press conference, flanked by his Jordanian and Egyptian counterparts.

“We are facing another challenge which is no less dangerous from coronavirus that is the war in Ukraine which affects a number of states, economies and communities, including those in our region.”

The three countries discussed ways to boost co-operation between the three countries.

Jordan's plans to supply Iraq with electricity

Jordanian Foreign Minister, Ayman Safadi, said plans to supply Iraq with electricity to meet its growing demand for power have reached the final stages.

Mr Safadi said supplying Iraq with electricity will start early next year. He did not give more details.

“The joint co-operation among us is necessary in order to boost our capabilities to face the growing challenges in our region,” he said.

“We are looking forward to continue working and co-operation to boost the Arab security not only through the tripartite framework but also through the Arab League,” Egyptian Foreign Minister Sameh Shoukry said.

The US has been pushing Iraq and other Arab countries to strengthen ties to counter Iranian influence in the region, which has been growing since the US-led invasion that toppled Saddam Hussein's regime.

Top among other deals is to construct a 1 million-barrel capacity pipeline to export Iraqi crude oil from Jordan’s Port of Aqaba. Of that, 150,000 barrels a day would supply Jordan's Zarqa refinery.

The project has been delayed, however, owing to the worsening security situation in Iraq, a lack of cash and also objections from some political factions who see the project as against Iraqi interests.

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.”

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Labour dispute

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- Abdullah Ishnaneh, Partner, BSA Law 

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Updated: June 07, 2022, 8:14 AM