Herbert Kickl led the Freedom Party of Austria to victory the 2024 general election. Getty Images
Herbert Kickl led the Freedom Party of Austria to victory the 2024 general election. Getty Images
Herbert Kickl led the Freedom Party of Austria to victory the 2024 general election. Getty Images
Herbert Kickl led the Freedom Party of Austria to victory the 2024 general election. Getty Images

Austrian far-right leader Herbert Kickl invited to form government


Tim Stickings
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Austrian far-right leader Herbert Kickl has been invited to form a government in a historic step for the country, after moderate parties failed to agree on a deal to keep him out of power.

Mr Kickl, who leads the Freedom Party of Austria (FPO), has been asked to enter coalition talks with the centre-right Austrian People's Party (OVP) to end a three-month impasse. The FPO received the most votes at a general election in October, the first time a far-right party has won in polls in Austria since the Second World War.

Centre-right chancellor Karl Nehammer sought to keep Mr Kickl out of power by forming a coalition with Austria's social democrats and liberals. But talks broke down over the New Year and Mr Nehammer announced his resignation at the weekend.

His successor as centre-right leader, Christian Stocker, indicated he was willing to work under a far-right government, in what Austrian President Alexander van der Bellen called a "new situation". Mr van der Bellen added that he "did not take this step lightly", after asking Mr Kickl to enter coalition talks.

Protesters hold an anti-far right demonstration outside the presidential palace in Vienna during talks between far-right leader Herbert Kickl and President Alexander Van der Bellen. Reuters
Protesters hold an anti-far right demonstration outside the presidential palace in Vienna during talks between far-right leader Herbert Kickl and President Alexander Van der Bellen. Reuters

Austria's government "must be robust" and have a reliable majority in parliament, Mr van der Bellen said. Anti-far right protesters gathered outside the presidential palace as he held talks with Mr Kickl, booing and chanting "Nazis out".

The President spoke of a difficult economic and financial environment in which a new government may have to take unpopular measures. The centrist parties could not agree on how to shrink Austria's budget deficit, which is forecast to exceed the EU's limit of three per cent of economic output in 2024 and 2025.

Talks between the conservatives and hard right are not guaranteed to succeed but there are no realistic alternatives left in the new parliament. The other option would be a snap election which polls suggest might strengthen the Freedom Party further.

Unlike the far-right Alternative for Germany (AfD), the FPO in Austria has been in government as a junior partner before, including between 2017 and 2019 when Mr Kickl served as interior minister. That coalition with the OVP ended amid a Russian corruption scandal exposed by footage filmed secretly in Ibiza.

Mr Kickl campaigned during the election against "remigration" and called for a ban on political Islam. The Russia-friendly party, which fiercely opposed Covid-19 lockdowns, also said Austria had sacrificed its neutrality and independence to the EU and World Health Organisation.

Critics have compared the FPO's rhetoric to the Nazi era. Mr van der Bellen has repeatedly said he will remain vigilant to ensure "cornerstones of democracy" including human rights, independent media and Austria's membership of the European Union are respected.

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Gifts exchanged
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The specs
Engine: 4.0-litre flat-six
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Torque: 450Nm at 6,100rpm
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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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Starring: Dennis Quaid, Josh Gad, Marg Helgenberger, Betty Gilpin, Kathryn Prescott

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The specs: 2019 Audi A7 Sportback

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Engine: 3.0-litre V6

Transmission: Seven-speed automatic

Power: 335hp @ 5,000rpm

Torque: 500Nm @ 1,370rpm

Fuel economy 5.9L / 100km

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Syria v Australia
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Company name: Entrupy 

Co-founders: Vidyuth Srinivasan, co-founder/chief executive, Ashlesh Sharma, co-founder/chief technology officer, Lakshmi Subramanian, co-founder/chief scientist

Based: New York, New York

Sector/About: Entrupy is a hardware-enabled SaaS company whose mission is to protect businesses, borders and consumers from transactions involving counterfeit goods.  

Initial investment/Investors: Entrupy secured a $2.6m Series A funding round in 2017. The round was led by Tokyo-based Digital Garage and Daiwa Securities Group's jointly established venture arm, DG Lab Fund I Investment Limited Partnership, along with Zach Coelius. 

Total customers: Entrupy’s customers include hundreds of secondary resellers, marketplaces and other retail organisations around the world. They are also testing with shipping companies as well as customs agencies to stop fake items from reaching the market in the first place. 

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Price, base: Dh69,900

Engine: 2.0-litre turbocharged four-cylinder

Transmission: Seven-speed automatic

Power: 197hp @ 5,500rpm

Torque: 315Nm @ 2,000rpm

Fuel economy, combined: 7.0L / 100km

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Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
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