Tunisia's Saied appoints Najla Bouden Romdhane as Arab world's first female PM


Erin Clare Brown
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Tunisia's President Kais Saied on Wednesday appointed Najla Bouden Romdhane as his new Prime Minister, a crucial step in leading the country out of its political crisis.

Ms Bouden is the first woman to hold the position in Tunisia and the first female prime minister in the Arab world.

"For the first time in Tunisia’s history, a woman will head the country as prime minister," Mr Saied said in a video introducing Ms Bouden posted to the presidency's Facebook page.

"We will work together in the near future, armed with the stable and constant determination to combat the corruption and state of chaos that has been witnessed throughout the country in several government institutions."

Born in 1958 in the central Kairouan governorate, Ms Bouden is a professor of higher education at the National Engineering School in Tunis, specialising in geoscience.

She steps into the role at a time of great uncertainty, 67 days after Mr Saied took the unprecedented step of suspending parliament, sacking the previous government and assuming exclusive control over a country gripped by political deadlock and economic strain.

A week ago, the president suspended much of the constitution and said he would rule by decree, a move that sparked protests at the weekend. The decree also cast the role of head of government as an assistant to the president, rather than a check on him. All executive power still resides with Mr Saied.

A political outsider, Ms Bouden will leave her current role at the Ministry of Higher Education and Scientific Research implementing a $70 million programme to improve employment chances for college graduates.

Since 2011, she has served as director general in charge of quality at the Higher Education Ministry. She also held the position of head of the Purpose Action Unit in the same ministry.

Ms Bouden will be Mr Saied's fourth head of government since he took office in autumn 2019, and the third he has personally appointed.

Elyes Fakhfakh, the former finance minister and the president's first hand-picked prime minister, served for six months before a corruption file brought by independent MP Yassine Ayari revealed he had millions of dollars in companies with state contracts. The scandal forced him to resign.

Mr Saied then appointed Hichem Mechichi, a political outsider whom the president put forward for interior minister under Mr Fakhfakh. Mr Mechichi assumed the role of head of government in September 2020.

The relationship between the two soon soured, and a standoff ensued.

In January 2021, after Mr Mechichi reshuffled his Cabinet, Mr Saied refused to swear in new ministers, claiming some needed to be investigated for corruption. The disagreement contributed to a growing crisis in the government, which had been at a near standstill for months. Ministers physically assaulted each other in session, insults were hurled and no legislation was passed.

Anti-government protests raged throughout the late winter and spring, as the political deadlock hardened and the country's economic crisis deepened during new lockdowns. Unlike many nations, Tunisia had not offered any financial assistance to those who lost work due to the shutdowns.

In July, during a deadly wave of Covid-19, hundreds of protesters took to the streets in the capital and other cities throughout the country to demand the fall of the government. This prompted Mr Saied to invoke an article of the constitution giving him extraordinary powers in times of crisis. He sacked Mr Mechichi on the night of July 25, Tunisia's Republic Day.

In a move widely criticised by foreign allies, Mr Saied froze parliament, contrary to the text of the article he invoked, which expressly states the parliament should be in continuous session during such extraordinary times.

In the months since, Mr Saied has ruled alone and proposed changing the constitution to eliminate the parliamentary structure altogether.

The extent of Ms Bouden's involvement in Tunisia's governance will perhaps become more apparent in the next few months.

The bio

Date of Birth: April 25, 1993
Place of Birth: Dubai, UAE
Marital Status: Single
School: Al Sufouh in Jumeirah, Dubai
University: Emirates Airline National Cadet Programme and Hamdan University
Job Title: Pilot, First Officer
Number of hours flying in a Boeing 777: 1,200
Number of flights: Approximately 300
Hobbies: Exercising
Nicest destination: Milan, New Zealand, Seattle for shopping
Least nice destination: Kabul, but someone has to do it. It’s not scary but at least you can tick the box that you’ve been
Favourite place to visit: Dubai, there’s no place like home

Director: Laxman Utekar

Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna

Rating: 1/5

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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Updated: September 29, 2021, 6:19 PM