Weapons in Iraq are not the solution to the crises the country is facing, Prime Minister Mustafa Al Kadhimi said as he encouraged citizens to participate in the upcoming elections to create a change for the better.
Iraq faces serious issues, from a dilapidated healthcare system, corruption and war-battered economy, to the task of reining in armed groups that operate outside the state's authority.
The country has witnessed dozens of assassinations and targeted killings of activists and reporters in recent months by unknown gunmen, the latest was Ihab Al Wazni who was murdered last month in the southern city of Karbala.
"There is anarchy in Iraq’s planning system that has caused the accumulation of a large number of problems. The use of weapons is not the solution, rather elections and a large voter turnout is needed to change for the better,” Mr Al Kadhimi said during a visit to the southern governorate of Wasit.
Iraq is scheduled to hold early elections on October 10, a response to a key demand by anti-government protesters since late 2019.
“The repercussions of the political situation have led to the problems we are experiencing today, and the change of reality will take place with the wide participation in the elections,” the prime minister said.
Since taking office last May, Mr Al Kadhimi vowed to meet the demands of protesters by holding early elections on June 6, 2021, nearly a year ahead of schedule.
These were later postponed to October 10.
The delay was the result of technical requirements, Mr Al Kadhimi said in January in a proposal submitted to the Cabinet to ensure a transparent electoral process.
He did not provide details on what the issues were.
The May 2018 federal elections featured a low turnout and were mired in allegations of voter fraud and corruption.
More than 25 million Iraqis are eligible to vote in the upcoming ballot, although those living abroad will be excluded from casting their ballots, Iraq's Independent High Electoral Commission said in April.
The prime minister embarked on a two-day visit to the southern governorate of Wasit to empower Iraq's agriculture sector that was severely depleted by years of war and employment opportunities in the south.
Mr Al Kadhimi said that "complete dependency on oil has been turned into an attraction for corruption, and we must rely on real alternatives, the most important of which is agriculture".
"We must work together and make every effort to return Iraq to its agricultural position in the region,” he said.
Iraq's agriculture sector cannot succeed without developing its industries, he said, "it requires serious foreign and local investments that the government must work on to attain".
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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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