Iraqis in Lebanon say Pope's visit to homeland gives them hope


Mahmoud Rida
  • English
  • Arabic

Pope Francis's trip to Iraq is fuelling hope among members of Lebanon’s Iraqi community that the first-ever papal visit to their home country will bring stability and an end to years of violence that prompted many to flee.

“This is a very important visit, especially during these difficult times when Arab countries are generally going through crisis, turbulences and protests,” said Layla Hamadan, an Iraqi immigrant.

The Pope’s visit comes at a time of rising coronavirus infections and renewed violence in Iraq, which is caught in the middle of rising tensions between Iran and the United States.

The security instability that has engulfed the country since the toppling of Saddam Hussein in 2003 saw the country’s Christian community dwindle from around 1.5 million to less than 400,000 today, according to some estimates.

The Vatican described the Pope’s four-day visit, which kicks off on Friday, as an act of solidarity with Iraqi people of all backgrounds, a message that appeared to resonate with Iraqi immigrants in Lebanon.

"The Pope's visit is [a message] of support for not only Iraq but to the whole Arab nation," Mustapha Al Shammari told The National. "I hope the country will once again enjoy a sense of normalcy without killings and explosions."

Sporadic security incidents have been a recurring theme in Iraq in recent years. Only days ahead of the Pope’s visit, a US civilian contractor died from a heart attack when rockets landed on an airbase housing US and Iraqi troops. The attack on Wednesday came less than a week after US airstrikes on Iran-backed militias in neighbouring Syria.

“We wish for security and stability so we will be able to go back to Iraq. No one is happy to live abroad,” Mr Al Shammari said.

Like hundreds of thousands of other refugees in Lebanon, many Iraqis are struggling to make ends meet. The small Mediterranean nation, home to more than 1.5 million refugees from countries across the region, is facing its worst economic crisis in decades. The crisis has been compounded by rampant corruption and bickering between Iran’s allies and their political rivals.

But Riad Al Najafi, another Iraqi immigrant, is hopeful that change will follow the first visit by a leader of the Catholic Church to Iraq.

"It's not out of the blue," he told The National. "I think it will pave the road for a new positive phase for countries across the region."

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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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Founded in 1985 by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, the Central Veterinary Research Laboratory (CVRL) is a government diagnostic centre that provides testing and research facilities to the UAE and neighbouring countries.

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