Public anger is mounting in Iraq after clashes between security forces and gunmen from an Iran-backed militia in Baghdad left two dead.
The violence was sparked when fighters stormed a government building to forcibly reinstate a dismissed director general in southern Baghdad. Security forces responded, triggering a gun battle that killed a policeman and taxi driver who were caught in the crossfire, security authorities said.
At least 15 fighters have been arrested by the security forces, according to authorities. They are affiliated with the Popular Mobilisation Forces (PMF) – an umbrella group formed in 2014 to fight ISIS. It is composed mainly of Iran-backed militias and is integrated into Iraq's armed forces. The fighters belong to Tehran-aligned Kataib Hezbollah, which is part of the PMF, a security official said.
Iraqi Prime Minister Mohammed Shia Al Sudani, who is also the commander-in-chief of the armed forces, has ordered an investigation on the “circumstances surrounding the incident and how the armed force moved without orders or proper approvals, attempted to take control of a government building and opened fire on security forces”, according to a statement.
In its own statement, the PMF said it would not “tolerate any violation by any individual to the orders of security protocols”. It did not give details on the incident or the measures that will be taken.
The Co-ordination Framework, a political group consisting of mainly Iran-backed Shiite political parties and armed factions and the main backer of Mr Al Sudani, denounced the incident in an emergency meeting. “It is a breach of the law and state protocols,” it said in a statement, expressing its support for government measures to “establish security, enforce the law, and preserve the state authority”.
The Siyada coalition, led by the Sunni tycoon Khamis Al Khanjar, warned of the “dangers of unregulated arms and outlaw groups", accusing them of illegally seizing lands in southern Baghdad and causing “demographic change” by driving out Sunni families. “We have long warned that the Iraqi state cannot achieve true stability and sustainable development as long as these unregulated and illegal arms are moving freely,” it added.
Iraqi civilians have expressed frustration over the impunity of armed factions and there have been calls for them to be disarmed or brought under state control. For many people, the latest violence is a reflection of a broader collapse in state authority.
“This wasn’t just a gunfight, it was an assault on the state,” a Baghdad shop owner told The National. “The fact that an armed group can storm a public office and challenge a government appointment with weapons is proof that we’ve lost control."
During the fight against ISIS, some of these militias were accused of rights breaches against civilians in Sunni areas. The Iraqi government and PMF acknowledged these breaches as “individual acts”.
The US has blacklisted several PMF leaders, including its chairman Falih Al Fayyadh, in a bid to increase pressure on Iran's proxies in Iraq, sanctioning senior figures between 2019 and 2021 under the Global Magnitsky Human Rights Accountability Act. Mr Al Fayyadh is an ally of Mr Al Sudani and is set to run in parliamentary elections in November with him.
After declaring ISIS defeated in late 2017, the PMF and mainly Tehran-aligned groups morphed into a major political and military power, growing more defiant towards the government and opposition groups. Since then, they have launched attacks against US troops in Iraq as well as in Syria, where they fought alongside former president Bashar Al Assad's forces in its civil war.
The latest clashes came amid a push by Shiite political parties inside parliament to approve new amendments to the existing PMF law that would elevate their role as security forces. The new amendments were among the main issues discussed by the US Secretary of State Marco Rubio and Mr Al Sudani in a phone call last week.
Mr Rubio “reiterated serious US concerns” with the PMF, emphasising that “any such legislation would institutionalise Iranian influence and armed terrorist groups undermining Iraq’s sovereignty,” spokeswoman Tammy Bruce said in a statement.
The US embassy on Monday called on the Iraqi government to “take measures to bring these perpetrators and their leaders to justice without delay,” in a statement on X. “Accountability is essential to upholding the rule of law and preventing further acts of violence,” it added.
While officially part of Iraq’s security apparatus under the control of the commander-in-chief, many of its factions maintain parallel chains of command and are widely believed to answer to Tehran. A photograph of the dead taxi driver was widely circulated on social media. Bullets ripped through his car when he passed by.
“His image is a grim symbol of a country held hostage by unaccountable militias,” the shop owner said. “He was trying to earn a living,” he added. “He didn’t belong to any party or faction, and yet he paid for this power struggle. That picture is Iraq. We are all trapped in this chaos.”
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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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Job Title: Human resources administrator, Expo 2020 Dubai
First jobs: Co-ordinator with Magrudy Enterprises; HR coordinator at Jumeirah Group
Entrepreneur: Started his own graphic design business
Favourite singer: Avril Lavigne
Favourite travel destination: Germany and Saudi Arabia
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UPI facts
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