Iranians are heading to the polls on Friday to make their final choice between contrasting candidates for who they want as their next president.
The regime will be hoping to see a higher turnout in the run-off vote, after the lowest ever in the first-round vote.
Reformist candidate Masoud Pezeshkian and ultraconservative Saeed Jalili led the pack in the first round last week, in an election cycle brought forward by the death of former president Ebrahim Raisi in a helicopter crash in May.
The Islamic republic's supreme leader Ayatollah Ali Khamenei, who has final say in all state matters, cast his ballot when the polls opened at 8am local time, state TV showed.
“We are starting the second round of the 14th presidential election to choose the future president from among the two candidates across 58,638 polling stations in the country and all stations abroad,” Interior Minister Ahmad Vahidi said, reported state TV.
Only 40 per cent of Iran's 61 million eligible voters cast their ballots in the first round, representing the lowest turnout in any presidential election since the 1979 revolution that toppled the pro-western monarchy and ushered in theocratic rule.
The two candidates held their final campaign rallies late on Wednesday so as to respect the election silence on Thursday.
The stark contrast between both candidates reflects the divide between hardliners and moderates in Iranian society.
At his rally, Mr Jalili promised “strength and progress” if elected, as posters of the late ultraconservative Mr Raisi adorned the walls, bearing the slogan: “A world of opportunities, Iran leaps forward.”
At an open-air stadium elsewhere in the capital, Mr Pezeshkian made the case for “unity and cohesion”, his supporters' chants invoking another former president – the reformist Mohammad Khatami who has endorsed their candidate.
“Long live Khatami, long live Pezeshkian!” called the spirited crowd, waving green flags adorned with the reformist candidate's “For Iran” slogan.
During one of their final televised debates this week, both candidates also clashed on their world views and foreign policy agendas.
Mr Pezeshkian, Iran's sole reformist candidate during this snap election cycle, said he would focus his foreign policy agenda on building more ties with other countries instead of continuing the isolation, and sometimes hostility, of previous governments.
Mr Jalili, known for his uncompromising anti-West stance, has staunchly opposed moves to restore a landmark 2015 deal with world powers which imposed curbs on Iran's nuclear activity in return for sanctions relief. He is also the country’s former top nuclear negotiator.
He has argued that the deal, which collapsed in 2018 when the US withdrew from it, had violated all of Iran's “red lines” by allowing inspections of nuclear sites.
Mr Pezeshkian has called for “constructive relations” with Western governments to end Iran's isolationist stance over the past several years.
“We can manage our country with unity and cohesion,” Mr Pezeshkian told his supporters at his final rally. “I will resolve internal disputes to the best of my ability,” he said.
Mr Pezeshkian has also pledged to fully end police patrols enforcing the mandatory headscarf rule for women and called to ease long-standing internet restrictions, in a key policy deviating from the hardliners in a bid to win female and young voters.
The hijab issue has become particularly contentious following mass protests following the 2022 death in custody of Mahsa Amini, who was detained for wearing her headscarf “improperly”.
Friday’s vote is also expected to test the Iranian regime’s bid to calm domestic grievances among its people after years of protests, including a wave in 2019 sparked by a government decision to increase the price of fuel.
Mr Khamenei called on Wednesday for voters to participate in Friday's presidential ballot, saying that historically low first-round turnout was not an act “against the system”.
Mr Khamenei, in a video published by state TV, said it was “completely wrong to think that those who did not vote in the first round are against the system”.
But “participation was not as expected,” added Mr Khamenei, who wields ultimate authority in Iran.
– Agencies contributed to this report.
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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United States
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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