Iraq's Prime Minister Mohammed Shia Al Sudani has been in office since October 2022. Photo: Iraqi Prime Minister Media Office
Iraq's Prime Minister Mohammed Shia Al Sudani has been in office since October 2022. Photo: Iraqi Prime Minister Media Office
Iraq's Prime Minister Mohammed Shia Al Sudani has been in office since October 2022. Photo: Iraqi Prime Minister Media Office
Iraq's Prime Minister Mohammed Shia Al Sudani has been in office since October 2022. Photo: Iraqi Prime Minister Media Office

Iraq to hold third France-backed Baghdad Conference in November


Mina Aldroubi
  • English
  • Arabic

Iraq will hold a security conference arranged by France at the end of November, according to Iraqi and French officials.

The "Baghdad Conference 2023 for economic integration and regional stability", the third such event, will return to the Iraqi capital, an official told The National.

"Invitations have been sent out to Arab and neighboring states as well as some European countries," the official said from Baghdad.

The meeting will follow the Baghdad II summit that was attended by officials from France and the EU in Jordan in December.

The first conference took place in Baghdad in August 2021 and was organised at the suggestion of French President Emmanuel Macron.

It comes as Mr Macron held a phone call with Iraq's Prime Minister Mohammed Shia Al Sudani late on Tuesday.

They "discussed the progress of preparations for the third edition of the Baghdad Conference for Co-operation and Partnership, which will be held on November 30 in Baghdad", according to a statement by the French presidency.

"They expressed their hope that this conference will pave the way for new projects, which will be useful to the sovereignty of Iraq, as well as to regional co-operation, particularly in terms of energy, the environment, water management and transport," the statement said.

Mr Al Sudani's office said the discussions focused on "enhancing relations regarding strategic partnership, economy, culture, security and the military. They also discussed Thales radar system purchase to fortify Iraq's airspace control and sovereignty."

The conference will be seen as a test for Mr Al Sudani, appointed Prime Minister in late October after more than a year of political deadlock.

Considered closer to Iran than his predecessor Mustafa Al Kadhimi, this will be Mr Al Sudani's second major international meeting.

The development comes as a French soldier was killed in Iraq in a four-hour firefight during a raid on an ISIS hideout on Tuesday.

The French government confirmed the death of soldier Nicolas Mazier, which it said occurred about 100 kilometres north of Baghdad.

France's Defence Ministry said in a statement that “a group of entrenched terrorists” had violently attacked Iraqi forces.

Four unidentified French soldiers were wounded and are in the US military hospital in the Iraqi capital, the ministry said.

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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.”

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