The UN Security Council voted unanimously on Friday to end the political mission in Iraq, established in 2003 after the US-led invasion toppled Saddam Hussein.
The mission was formulated to lead post-conflict humanitarian work, co-ordinate reconstruction efforts and establish a representative government in the country.
The Iraqi government asked the international body in a May 8 letter to conclude the mission by the end of 2025.
Iraqi government spokesman Bassem Al Awadi said the decision was “a result of the tangible progress that Iraq has witnessed in various ways, stability at the internal level, and the completion of the political construction process that began in 2003, after the overthrow of a dictatorial regime”, the country's state news agency reported.
The US-sponsored resolution approved on Friday extended the mandate of the UN Assistance Mission in Iraq, known as Unami, for a final 19 months until December 31, 2025, when all of its work will officially cease.
It also asks Secretary General Antonio Guterres to prepare “a transition and liquidation plan” for Unami to start transferring its tasks and withdrawing staff and assets by the end of its mandate.
Mr Guterres is also asked to help the Iraqi government to better prepare for free elections for the federal parliament as well as for the parliament in the Kurdistan region.
The Security Council said it supports Iraq’s continuing stabilisation efforts, including its continuing fight against ISIS, Al Qaeda and their affiliates.
In 2014, ISIS declared a caliphate in large parts of Iraq and Syria and attracted tens of thousands of supporters from around the world.
The extremists were officially defeated by a US-led military coalition in Iraq in 2017 and in Syria in 2019, but cells remain active in both countries.
There are roughly 2,500 US troops stationed in Iraq, largely in military installations in Baghdad and in the north.
Iraqi Prime Minister Mohammed Shia Al Sudani has contended that the country's security forces are capable of dealing with the remaining ISIS cells and the coalition’s presence is no longer needed.
The UN resolution also expresses support for Iraq's reform efforts aimed at fighting corruption, respecting and protecting human rights, delivering essential services, creating jobs and diversifying the economy.
US deputy ambassador Robert Wood welcomed the resolution’s unanimous adoption and plans for an orderly wind-down of Unami.
“We all recognise that Iraq has changed dramatically in recent years and Unami’s mission needed to be realigned as part of our commitment to fostering a secure, stable and sovereign Iraq,” he told the council.
It also authorises Unami to allow for progress towards resolving outstanding issues between Iraq and Kuwait, stemming from Saddam Hussein’s invasion of its smaller neighbour in August 1990.
In addition, the resolution says Unami should help with the return of internally displaced people, providing health care and other services, and with economic development.
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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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