Iraq is set to host Turkish President Recep Tayyip Erdogan on Monday in a visit that aims to promote greater co-operation between the two neighbouring countries.
Baghdad and Ankara have had strained relations since the 2003 US-led invasion that toppled Saddam Hussein’s regime.
Among the disagreements between the two nations are the decades-long Turkish military operation in northern Iraq against the Kurdish dissent group which Baghdad views as an infringement on the country’s sovereignty. Relations have also been strained over Iraqi demands for a fair share of water flowing to the Tigris and Euphrates rivers.
The two are set to sign several agreements to enhance relations and co-operation in different fields, Iraq’s National Security Adviser Qasim Al Araji said on Wednesday.
Mr Al Araji described the visit of Mr Erdogan as “significant”, and that he was “optimistic” about the meeting.
“Iraq is keen to solve all these issues and challenges and we have found a genuine and serious willingness from the Turkish side,” he said.
Mr Erdogan will start his one-day visit in Baghdad where he will meet Iraqi President Abdul Latif Rashid and Prime Minister Mohammed Shia Al Sudani before visiting Erbil, the provincial capital of the Kurdish region.
The Kurdistan Workers' Party, or PKK, has bases in northern Iraq, from which it has launched attacks against Turkey in an attempt to gain greater autonomy for the Kurdish people.
The conflict between the Turkish army and the PKK in Iraq escalated in the 1990s when Turkey launched several ground operations in northern Iraq after the 1991 Gulf War.
Ankara has launched several operations in Iraq against the group, which have been expanded in recent years.
PKK is designated as a terrorist group by the US and the EU. It took up arms against the Turkish state in 1984 with more than 40,000 people killed.
Last month, a Turkish delegation held talks in Baghdad. During the meeting, Ankara asked for greater co-operation in its fight against the PKK ahead of a military operation this summer, according to Iraqi officials.
The two sides hailed the talks as “productive” and Turkey welcomed Iraq’s move to designate the PKK as a “banned organisation”.
Another outstanding issue is Iraq's demand for a “fair and equitable” share of water from the Tigris and Euphrates rivers, which account for more than 90 per cent of its freshwater supply.
Both rivers originate in Turkey, while several tributaries from neighbouring Iran also feed the Tigris.
Turkey has built several dams on the rivers, while Iran has diverted the tributaries to its land.
For decades, Iraq has failed to agree with either country on how to ensure a fair share of water. Both argue that they, too, suffer from scarcity of water and that Iraq uses outdated irrigation methods.
“We have prepared the appropriate memorandum that will be included in the protocol that will be signed during the visit,” Minister of Water Resources Aoun Diab Abdullah said at the Sulaimani Forum adding that “it will be a step forward”.
His statement echoed those from Mr Erdogan last week, in which he said the water issue will be “one of the most important agenda items”.
“They [Iraqis] have made some requests regarding water, and we are working on these issues,” he said.
“We will make efforts to resolve this issue with them. They already want to resolve this matter. We will take steps in this direction.”
The discussion will also address other issues such as natural gas and oil flow to Turkey.
Baghdad and Ankara are at odds over oil exports from Iraq's northern Kurdish region through Turkey, the subject of a long-running dispute between the Iraqi federal government and the Kurdish regional government.
Last year, Turkey halted the flow of about 500,000 barrels a day through a pipeline from the Kurdish region after an arbitration ruling by the International Chamber of Commerce ordered Ankara to pay Baghdad damages for unauthorised exports between 2014 and 2018. No deal has since been reached to resume exports.
Turkey is one of Iraq’s main trade partners. In March last year, Mr Erdogan said that the volume of annual trade between the two neighbouring countries “broke the record” set in 2022, exceeding $24 billion.
Baghdad is also keen to have Ankara invest in the $17 billion infrastructure project known as the Dry Canal or Development Road. The proposed road and rail link will run from southern Iraq to Turkey, where it will connect to rail and road networks in Europe.
COMPANY PROFILE
Name: Mamo
Year it started: 2019 Founders: Imad Gharazeddine, Asim Janjua
Based: Dubai, UAE
Number of employees: 28
Sector: Financial services
Investment: $9.5m
Funding stage: Pre-Series A Investors: Global Ventures, GFC, 4DX Ventures, AlRajhi Partners, Olive Tree Capital, and prominent Silicon Valley investors.
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.”
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
The%20specs
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Brief scores:
Toss: Northern Warriors, elected to field first
Bengal Tigers 130-1 (10 ov)
Roy 60 not out, Rutherford 47 not out
Northern Warriors 94-7 (10 ov)
Simmons 44; Yamin 4-4
Juventus v Napoli, Sunday, 10.45pm (UAE)
Match on Bein Sports
Results
5pm: Maiden (PA) Dh80,000 (Turf) 2,200m, Winner: Zalman, Pat Cosgrave (jockey), Helal Al Alawi (trainer)
5.30pm: Maiden (PA) Dh80,000 (T) 1,600m, Winner: Hisham Al Khalediah II, Fernando Jara, Mohamed Daggash.
6pm: Handicap (PA) Dh85,000 (T) 1,600m, Winner: Qader, Adrie de Vries, Jean de Roualle
6.30pm: Abu Dhabi Championship Listed (PA) Dh180,000 (T) 1,600m, Winner: Mujeeb, Fabrice Veron, Eric Lemartinel
7pm: Wathba Stallions Cup Handicap (PA) Dh70,000 (T) 1,600m, Winner: AF Majalis, Tadhg O’Shea, Ernst Oertel
7.30pm: Handicap (TB) Dh90,000 (T) 1,600m, Winner: Shanaghai City, Fabrice Veron, Rashed Bouresly
8pm: Handicap (TB) Dh100,000 (T) 1,400m, Winner: Nayslayer, Bernardo Pinheiro, Jaber Ramadhan