Brahim Boughali, left, Algeria's National Assembly Speaker, meets late Iranian president Ebrahim Raisi in August last year as part of a state visit to Tehran. Photo: Irna
Brahim Boughali, left, Algeria's National Assembly Speaker, meets late Iranian president Ebrahim Raisi in August last year as part of a state visit to Tehran. Photo: Irna
Brahim Boughali, left, Algeria's National Assembly Speaker, meets late Iranian president Ebrahim Raisi in August last year as part of a state visit to Tehran. Photo: Irna
Brahim Boughali, left, Algeria's National Assembly Speaker, meets late Iranian president Ebrahim Raisi in August last year as part of a state visit to Tehran. Photo: Irna

Iran delegation visits Algeria and Tunisia as rapprochement gathers pace


Ghaya Ben Mbarek
  • English
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A delegation of Iranian politicians has begun a week-long visit to Algeria and Tunisia as Tehran seeks greater co-operation and a stronger presence in North Africa.

The group, led by Ibrahim Azizi, head of the Iranian Parliament's National Security and Foreign Policy Committee, was on Wednesday in Algeria and is expected to arrive in Tunisia on Thursday.

Mr Azizi was accompanied by other members of the committee as well as Mohammad Reza Babai, Iran’s ambassador to Algeria.

Diplomatic relations between Algiers and Tehran have been turbulent for decades, with tension reaching a peak in the 1990s when Algeria accused Iran and others of supporting Islamist extremist groups in a brutal civil war known as “the Black Decade”. The conflict led to the deaths of an estimated 200,000 people, mostly members of the Algerian government security forces.

This led to the severance of ties, which were resumed in the early 2000s by late Algerian president Abdelaziz Bouteflika and his Iranian counterpart at the time Mohammad Khatami.

Despite the resumption, relations remained lukewarm until last year, when high-profile politicians began exchanging visits starting with late Iranian Foreign Minister Hossein Amirabdollahian, who travelled to Algiers in July. That was followed by a four-day visit to Tehran by Brahim Boughali, the Algerian National People’s Assembly Speaker, during which he met late Iranian president Ebrahim Raisi.

During the current visit, the delegation has met Algerian Foreign Minister Ahmed Attaf and the chairmen of the foreign affairs committees in Algeria’s two parliamentary chambers – Mohamed Amroun and Mohamed Khawan.

A statement by Mr Attaf’s office released on Tuesday said “the reality and prospects of the fraternal and co-operative relations between the two brotherly countries” were reviewed at the meeting. It also discussed ways to boost relations to “the highest possible levels”.

Mr Amroun said: “It is an opportunity for the two parties to discuss the current good bilateral relations between Algeria and Iran … and ways to raise them to the best level by strengthening co-operation and consolidating the registered consensus on many regional and international issues, especially those related to the Palestinian issue and the challenges facing the Islamic world."

The officials also discussed ways to boost economic and commercial co-operation, especially in agriculture, tourism and education.

Algeria, which occupies a non-permanent seat at the UN Security Council, made reference to Israel's wars in Gaza and Lebanon, raising what it called infringements to the rule of international law, a decline in regional security and “the dangerous global transformations that threaten the stability of Islamic countries”.

The Iranian delegation’s scheduled visit to Tunisia on Thursday is also drawing attention as it marks a shift in Tunisia’s conventional foreign policy, signalling a perceived realignment away from the West.

The new phase was ushered in when Tunisian President Kais Saied made a historic visit to Iran in May for the funeral of late Iranian president Mr Raisi. It was a first for a Tunisian head of state since Habib Bourguiba visited Tehran in 1965. Mr Saied met several high-ranking Iranian officials including supreme leader Ayatollah Ali Khamenei.

Iranian President Masoud Pezeshkian, meanwhile, was among the first world leaders to congratulate Mr Saied on his re-election last month.

In a further sign of warming relations, Tunisia relaxed visa requirements for Iranian tourists in June. The move followed similar measures for Tunisian citizens entering Iran.

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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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Updated: November 27, 2024, 9:42 AM