Qatari citizens cast their ballots in the referendum at a polling station in Doha. AFP
Qatari citizens cast their ballots in the referendum at a polling station in Doha. AFP

Qatar votes in referendum on scrapping legislative elections



Qatari citizens voted on Tuesday in a referendum on ending legislative elections that have filled two thirds of seats in the Shura Council, which drafts laws and approves state budgets.

Voters cast ballots to decide whether to pass constitutional changes that would scrap the elections. Results are expected on Wednesday. All Qatari employees in the country were granted permission to leave work to vote.

There was “an enthusiastic atmosphere and a historic moment, clearly confirming everyone’s keenness to make this national celebration a success”, Qatar's state news agency said. The referendum will “strengthen the social fabric in the most beautiful image and form, which honestly represents an important stage in the country’s victorious march and its national unity”, it added.

Qatar first introduced plans for legislative elections in its 2003 constitution, but authorities repeatedly postponed implementing the vote. The country finally held polls for two thirds of the Shura Council, which also advises the Emir, in October 2021.

But the elections caused tension as only some of the country's about 380,000 Qatari citizens were eligible to vote. Last October, Qatar's Emir Sheikh Tamim called the polls an "experiment" and proposed constitutional changes to scrap them.

The Qatari establishment has appeared confident of the result of Tuesday's referendum, the first in more than 20 years.

The country has also held municipal council elections every four years since 1999.

Under the constitutional amendments, the Shura Council would again be wholly appointed by the Emir. The Shura proposes legislation, approves the budget and recalls ministers, but the Emir wields a veto.

Among other proposed changes on the ballot is a move to allow all Qataris, including naturalised citizens, to hold ministerial office, a right previously reserved for Qatari-born citizens.

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Name: Almnssa
Started: August 2020
Founder: Areej Selmi
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Sectors: Internet, e-commerce
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Stars: Cate Blanchett, Kevin Kline, Lesley Manville 

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Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
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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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Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed 

How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

Updated: November 05, 2024, 2:19 PM