Millions of Shiite Muslims have converged on the Iraqi city of Karbala to observe the Arbaeen pilgrimage.
The annual event marks the end of the 40-day mourning period commemorating the death of the grandson of the Prophet Mohammed and seventh-century Shiite Imam Hussein.
It is one of the largest religious gatherings in the world, drawing mainly Shiite faithful to Karbala, where Imam Hussein and his brother Imam Abbas are buried.
Arbaeen, which means “40” in Arabic, is a tradition deeply rooted in Shiite Islam. It symbolises the end of the mourning period that begins with the holy day of Ashura, during which Imam Hussein and his companions were killed in the Battle of Karbala in 680 AD.
Imam Hussein opposed the Damascus-based second Umayyad caliph Yazid Ibn Muawiyah, moving from Madinah to outside Karbala in modern-day Iraq.
His death holds a great significance for Shiite Muslims and Arbaeen brings together people from all walks of life.
At least three million foreign pilgrims have entered Iraq, mainly from Iran, the Gulf, Lebanon, Pakistan, India and western nations, Iraqi Interior Ministry figures have shown.
Religious authorities in Karbala put the number of pilgrims who entered the city over the past 20 days at 22 million, without giving a breakdown of their nationalities.
“There are no countries, no governments and no billions spent to bring all these people here, but it is the love of Hussein which ignites in their hearts that drove them to come out,” Saudi-Tunisian Sheikh Ahmed Salman told the local Al Anwar TV.
For days, many of the pilgrims from within Iraq or neighbouring countries walk long distances to reach the city of Karbala, nestled on the banks of Euphrates River, south of Baghdad.
While on the road to Karbala, the black-clad pilgrims, some of whom have babies in strollers, wear caps or put wet cloths on their heads to prevent sunburn. Some hold flags and banners.
Once they arrive at the ornately decorated and gold-domed shrine, they start beating their heads and chests and shouting rhymes, while some flog themselves with chains.
The shrines are adorned with vibrant banners and illuminated with mainly red and black lights.
Along the roads to Karbala, Iraqis set up tents to offer free meals and cold drinks for pilgrims. Some volunteers offer massages to pilgrims, a place to rest during their arduous journey and splash them with water to cool them down.
Organising an event of this magnitude comes with its share of challenges. Iraqi authorities, in collaboration with various local and foreign Shiite religious groups, have worked to ensure the safety and well-being of the pilgrims.
Iraqi security forces have been stationed along the pilgrimage routes and helicopters hover overhead to protect participants. Medical sites have been set up to provide assistance to those in need.
Iraq’s ageing infrastructure, battered by decades of war, neglect and mismanagement, continues to create issues for authorities and pilgrims.
Dozens of pilgrims, mainly Iranians, have died this year in car accidents, while border authorities have struggled to cope with the number of visitors.
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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.”