Georgian campaigners fear a “difficult path ahead” for their country after the ruling pro-Russia party of government was elected for a fourth consecutive term.
Georgian Dream, which is chaired by billionaire Bidzina Ivanishvili, won by 54 per cent on Sunday, contrary to the findings of independent exit polls.
This result was immediately disputed by the country’s united block of four pro-western opposition parties, who claimed the election was stolen.
President Salome Zourabichvili urged Georgians to rally on Monday night in Tbilisi against what she called a "total falsification, a stealing of your votes".
This election cannot be recognised, because it is the recognition of Russia’s intrusion here, Georgia’s subordination to Russia
President Salome Zourabichvili
“This election cannot be recognised, because it is the recognition of Russia’s intrusion here, Georgia’s subordination to Russia,” Ms Zourabichvili said on Sunday.
There are fears that the result will draw Georgia closer into Russia's orbit. The election comes shortly after those in Moldova, where Moldovan officials accused Russian operatives of making cash payments for votes against President Maia Sandu, who had applied for Moldova to join the EU.
“Russia is trying to reel in Georgia. It all depends on how it unravels in Ukraine,” said Shota Dighmelashvili, founder of the NGO Governance Monitoring Centre and a campaigner for EU accession in Tbilisi.
The country had experienced waves of anti-government protests this year, with four in five Georgians supporting accession to the EU. Independent polls had predicted a win for the bloc of pro-western parties.
“Everybody’s surprised with the result,” Mr Dighmelashvili told The National. “The support [for GD] is more than in prior elections. It is a sign that authoritarianism is on the rise in Georgia.”
He hoped the elected members of Georgia’s pro-western opposition would boycott the new government, but thought the chances of this happening were slim. Instead, it was up to western governments to show their support.
“A lot depends on whether the international community recognises the elections as free and fair. There was a lot of discrepancy in terms of resources,” Mr Dighmelashvili said.
The opposition accuses Georgian Dream of interfering by offering cash handouts to rural voters and pressuring others to vote.
“The victory was stolen from the Georgian people … We do not accept results of these falsified elections,” said Tinatin Bokuchava, leader of the biggest opposition party, United National Movement.
This is the party’s fourth term in power, with Mr Ivanishvili’s language becoming increasingly anti-western.
After voting in the capital yesterday, he told reporters that the opposition was composed of “foreign agents, who will carry out only the orders of a foreign country”.
The protests this year were caused by the passing of a US-style foreign agents law against western-backed NGOs and media organisations.
The weeks of rallies were often met with violence by riot police.
Human rights lawyer Agit Mirzoev said that pro-democracy activists should think cautiously about the next steps. He pointed to Belarus, where anti-government protests after a disputed election in 2020 resulted in a crackdown on the opposition.
“We have a very hard path ahead,” he told The National. “We remember how it started in Belarus. We need more hard work and more resources.”
Mr Mirzoev said Georgian Dream's increasingly hostile position to the West was likely to end discussions about joining the EU. “For many years, all our conversations were about EU and Nato integration processes. This will stop them. It is a very bad symptom,” he said.
Georgia had been placed on the EU’s accession list in December last year, but this was suspended in May after the government passed its foreign agents law.
But Mr Mirzoev also blamed the opposition parties for not unifying sooner. “You cannot form a coalition at the last moment. This is also a result of their bad work,” he said.
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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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BELGIUM%20SQUAD
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How the UAE gratuity payment is calculated now
Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.
The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.
1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):
a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33
b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.
2. For those who have worked more than five years
c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.
Note: The maximum figure cannot exceed two years total salary figure.
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Chelsea 0
Liverpool 2 (Mane 50', 54')
Red card: Andreas Christensen (Chelsea)
Man of the match: Sadio Mane (Liverpool)
TICKETS
Tickets start at Dh100 for adults, while children can enter free on the opening day. For more information, visit www.mubadalawtc.com.
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MATCH INFO
Champions League last 16, first leg
Tottenham v RB Leipzig, Wednesday, midnight (UAE)
Drivers’ championship standings after Singapore:
1. Lewis Hamilton, Mercedes - 263
2. Sebastian Vettel, Ferrari - 235
3. Valtteri Bottas, Mercedes - 212
4. Daniel Ricciardo, Red Bull - 162
5. Kimi Raikkonen, Ferrari - 138
6. Sergio Perez, Force India - 68
Brief scores:
Pakistan (1st innings) 181: Babar 71; Olivier 6-37
South Africa (1st innings) 223: Bavuma 53; Amir 4-62
Pakistan (2nd innings) 190: Masood 65, Imam 57; Olivier 5-59
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Countries offering golden visas
UK
Innovator Founder Visa is aimed at those who can demonstrate relevant experience in business and sufficient investment funds to set up and scale up a new business in the UK. It offers permanent residence after three years.
Germany
Investing or establishing a business in Germany offers you a residence permit, which eventually leads to citizenship. The investment must meet an economic need and you have to have lived in Germany for five years to become a citizen.
Italy
The scheme is designed for foreign investors committed to making a significant contribution to the economy. Requires a minimum investment of €250,000 which can rise to €2 million.
Switzerland
Residence Programme offers residence to applicants and their families through economic contributions. The applicant must agree to pay an annual lump sum in tax.
Canada
Start-Up Visa Programme allows foreign entrepreneurs the opportunity to create a business in Canada and apply for permanent residence.
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law