Skanninge prison in Sweden. The country already has one of Europe's most overcrowded prison estates. Alamy
Skanninge prison in Sweden. The country already has one of Europe's most overcrowded prison estates. Alamy
Skanninge prison in Sweden. The country already has one of Europe's most overcrowded prison estates. Alamy
Skanninge prison in Sweden. The country already has one of Europe's most overcrowded prison estates. Alamy

Sweden plans to send jailed immigrants abroad to free up space in prisons


Tim Stickings
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Sweden is planning to send foreign criminals back to prisons in their home countries as its tough-on-crime policies lead to overcrowding in jails.

Justice chiefs say one in five prisoners in Sweden comes from abroad, with most of those being from non-EU or Nordic countries to which it is harder to have them deported. They are seeking new powers to transfer people to foreign jails "without consent", even if their sentence is relatively light.

The crackdown on crime in Sweden means "more people will be in prison, and for longer periods of time", said Justice Minister Gunnar Strommer. He said the new proposals "can reduce the burden on Swedish prisons while protecting taxpayers' money".

Sweden already has one of Europe's most overcrowded prison estates, with 105 people behind bars for every 100 places available, according to figures published by the Council of Europe last year. Auditors have warned of overcrowded prisons and overburdened probation workers, meaning a lack of treatment for those at risk of reoffending.

Despite this Sweden has doubled sentences for serious weapons offences as it banks on prison as a deterrent against its criminal gangs. Police have battled a spate of shootings and explosions in major cities, with gangs allegedly doing Iran's bidding and many politicians pointing the blame at failed immigration policies.

Migration policy

"Support for and confidence in free movement across borders within the EU and migration policy depend, among other things, on foreigners coming to Sweden refraining from crime," the government wrote in papers setting out the new prisons policy. It said current rules for sending prisoners abroad "can rightly be described as complicated and difficult to apply".

Swedish police have been battling a spate of gangland shootings and explosions in major cities in recent years. AFP
Swedish police have been battling a spate of gangland shootings and explosions in major cities in recent years. AFP

"A clear stance from Sweden that convicted persons with no connection to Sweden should serve their sentences in their home countries can also, to some extent, reduce the incentive to commit crimes here," it said.

Swedish prosecutors last week announced charges against a suspected crime boss from the Foxtrot gang who is suspected of giving orders from a base in Serbia. The 38-year-old man was extradited to Sweden last year and faces trial on more than a dozen drugs and weapons charges, which he denies.

Swedish parties agreed last month that dual citizens who threaten national security could be stripped of their passports in a "fundamental change" to nationality law, but failed to agree on doing the same for gang members. Mr Strommer warned that tackling gang violence was a "critical democratic issue".

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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Should late investors consider cryptocurrencies?

Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.

They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.

“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.

He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.

Updated: February 26, 2025, 1:53 PM