A special mission established by the UN in 2003 at the request of the Iraq government has shut down a key office, in another step towards ceasing operations in the country by the end of this year.
The UN Assistance Mission in Iraq closed its offices Mosul this week. Unami, which has its headquarters in Baghdad, was set up after the US-led invasion that toppled the dictatorship of Saddam Hussein.
It was given a broad mandate to help develop Iraqi institutions, support political dialogue and elections, and promote human rights. The agency’s heads have shuttled between Iraq’s political, security and judicial officials to help resolve conflicts.
Baghdad requested last year that the mission end by 2025, saying it was no longer needed because Iraq had made significant progress towards stability. “Iraq has managed to take important steps in many fields, especially those that fall under Unami's mandate,” Prime Minister Mohammed Shia Al Sudani said in a letter to UN Secretary General Antonio Guterres.
However, the mission will continue to deliver in its remaining mandate, “including providing technical electoral assistance, promoting human rights, supporting humanitarian and development tasks”, an Unami representative told The National.
In the final months of the year, the agency’s work will be “transferred to the UN Country Team operating in Iraq or to the national authorities”, the representative said.
“In short, while Unami is leaving Iraq, the United Nations is not. The United Nations will continue to engage in support of the Government and the people of Iraq.”
Unami closed its office in the northern city of Kirkuk at the end of April. Its remaining offices in Erbil, capital of the Kurdish region, and in the southern city of Basra will be closed along with its headquarters at the end of the year.
Mr Guterres, who was in Baghdad this month for the Arab Summit, said during a meeting with Mr Al Sudani that the world body “remains fully committed to continuing to support the government and people of Iraq following the departure of Unami”.
Farhad Alaaldin, foreign affairs adviser to Mr Al Sudani, told The National that ending the UN mission represents a significant milestone for Iraq.
“It reflects the international community’s recognition of the progress Iraq has made in strengthening its institutions, achieving greater political stability, and moving beyond the post-conflict phase,” he said.
“This is not the end of Iraq’s relationship with the United Nations, but rather the beginning of a new phase – one based on equal partnership, development co-operation, and mutual respect.”
Renad Mansour, director of the Iraq Initiative at Chatham House, said Mr Al Sudani's government was claiming the concept of sovereignty and that a monitoring mission such as the UN's that reports on the progress of the country should be abolished.
“This is not normal, and these are the words that are used by the Iraqi government: 'We want to be a normal country',” Mr Mansour told The National.
“From the perspective of the Iraqi government, the [UN mission] is outdated and does not fit with where Iraq is right now. From the UN perspective, they believe that they helped with rebuilding of the state.”
Iraq expert Sajjad Jiyad, a fellow at Century International, said Baghdad still needs international support in areas such as fighting corruption and enforcing reforms across state institutions.
“It still needs international support for things that have troubled the Iraqi state for these past two decades – issues like corruption and financial management, engaging in reforms, economic ones, military logistics,” he told The National.
The assistance may not come from the UN but other institutions, although Iraq will continue to deal with the UN, he said.
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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.”
Innotech Profile
Date started: 2013
Founder/CEO: Othman Al Mandhari
Based: Muscat, Oman
Sector: Additive manufacturing, 3D printing technologies
Size: 15 full-time employees
Stage: Seed stage and seeking Series A round of financing
Investors: Oman Technology Fund from 2017 to 2019, exited through an agreement with a new investor to secure new funding that it under negotiation right now.
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Company name: Dharma
Date started: 2018
Founders: Charaf El Mansouri, Nisma Benani, Leah Howe
Based: Abu Dhabi
Sector: TravelTech
Funding stage: Pre-series A
Investors: Convivialite Ventures, BY Partners, Shorooq Partners, L& Ventures, Flat6Labs
Bio:
Favourite Quote: Prophet Mohammad's quotes There is reward for kindness to every living thing and A good man treats women with honour
Favourite Hobby: Serving poor people
Favourite Book: The Alchemist by Paulo Coelho
Favourite food: Fish and vegetables
Favourite place to visit: London
The biog
Name: Timothy Husband
Nationality: New Zealand
Education: Degree in zoology at The University of Sydney
Favourite book: Lemurs of Madagascar by Russell A Mittermeier
Favourite music: Billy Joel
Weekends and holidays: Talking about animals or visiting his farm in Australia
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