Iraqi PM's official visit to Kuwait seeks to strengthen relations

Iraqi Prime Minister Mohammed Shia Al Sudani landed in Kuwait on Wednesday for an official visit.

Mr Al Sudani, who took office last month, is seeking to assure Iraq's neighbours that his Iran-backed government will continue to strengthen ties.

The Iraqi leader has the support of the largest parliamentary group, the Co-ordination Framework, which is made up of Shiite militias and political parties close to Iran.

He was greeted by Kuwait’s Prime Minister Sheikh Ahmad Nawaf Al Sabah, his office said. They are set to discuss relations between the two nations and ways to enhance co-operation, an Iraqi statement said.

On Monday, he discussed bilateral relations with Jordan's King Abdullah II in Amman. King Abdullah said Iraq has an important role to play in the Arab world.

In August 1990, Saddam Hussein ordered his army into Kuwait to seize what he described as “Iraq's 19th province”, before being pushed back seven months later by a US-led coalition.

Since the 2003 US-led invasion of Iraq that toppled Saddam, diplomatic relations and co-operation have resumed. Kuwait sent its ambassador to Baghdad in 2008.

Earlier this year, Iraq made the final payment for the $52.4 billion of claims for the damages during the invasion.

But there are challenging issues still at play between the two nations.

Iraqi fishermen complain of harassment by Kuwaitis who maintain that the fishermen do not respect boundaries. Iraqi officials in charge of building the multibillion-dollar Al Faw Port project on the Gulf often complain about the same harassment.

Iraq’s mainly Sunni neighbours have sought since 2007 to restore ties damaged by Saddam’s rule and the 2003 invasion as the security situation in Iraq has improved.

Washington has also pressed for Arab countries to play a bigger political role in Iraq, partly to counter Iranian influence and to promote reconciliation between Iraq’s minority Sunni community and majority Shiites.

Iraqi PM visit to Jordan — In pictures

King Abdullah II, accompanied by Crown Prince Al Hussein, receives Iraq Prime Minister Mohamed Shia Al Sudani at Marka Military Airport. Photo: Royal Hashemite Court
King Abdullah and Crown Prince Al Hussein welcoming Mr Al Sudani to Amman. AFP
King Abdullah receives the Iraq Prime Minister Mohamed Shia Al Sudani. Photo: Royal Hashemite Court
An official welcoming ceremony is held for Mr Al Sudani at Marka Military Airport. Photo: Royal Hashemite Court
King Abdullah II, Crown Prince Al Hussein and Mr Al Sudani at Basman Palace. Photo: Royal Hashemite Court
King Abdullah II, accompanied by Crown Prince Al Hussein, holds talks with Mr Al Sudani and reaffirms pride in the deep-rooted ties between Jordan and Iraq, and keenness to advance co-operation across all levels. Photo: Royal Hashemite Court
King Abdullah II, accompanied by Crown Prince Al Hussein, holds talks with Mr Al Sudani and reaffirms pride in the deep-rooted ties between Jordan and Iraq, and keenness to advance co-operation across all levels. Photo: Royal Hashemite Court
King Abdullah II, accompanied by Crown Prince Al Hussein, holds talks with Mr Al Sudani and reaffirms pride in the deep-rooted ties between Jordan and Iraq, and keenness to advance co-operation across all levels. Photo: Royal Hashemite Court

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

The White Lotus: Season three

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ONCE UPON A TIME IN GAZA

Starring: Nader Abd Alhay, Majd Eid, Ramzi Maqdisi

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The National Archives, Abu Dhabi

Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.

Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en

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Trips on the Golden Eagle Trans-Siberian cost from US$16,995 (Dh62,414) per person, based on two sharing.

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THE BIO

Age: 33

Favourite quote: “If you’re going through hell, keep going” Winston Churchill

Favourite breed of dog: All of them. I can’t possibly pick a favourite.

Favourite place in the UAE: The Stray Dogs Centre in Umm Al Quwain. It sounds predictable, but it honestly is my favourite place to spend time. Surrounded by hundreds of dogs that love you - what could possibly be better than that?

Favourite colour: All the colours that dogs come in

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.”