Iraqi Kurdistan opposition figure Talabani arrested after clashes in Sulaymaniyah


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A senior politician in Iraq’s semi-autonomous Kurdish region was arrested on Friday after a night of heavy clashes in the northern city of Sulaymaniyah between his supporters and security forces.

Lahur Jangi Talabani, a top opposition figure who is a former member of one of the ruling parties in the Kurdistan Regional Government (KRG), was arrested at a hotel in the city following a court order.

Mr Talabani's brothers Polad and Aso were also arrested, as well as a number of his guards. Rebwar Hajj Ghani, who commands Mr Talabani's armed group, surrendered and switched allegiances, officials in Sulaymaniyah told The National.

Kurdistan security authorities said in a statement that three members of the security forces were killed and 19 wounded in the clashes that lasted for more than three hours. It confirmed the arrest of Mr Talabani and several others, describing them as “outlaws”.

Mr Talabani is also a former head of the KRG's Zanyari intelligence service and was a founding member of the counter-terrorism group set up by the regional government. He was one of the leading figures in Iraq's battle against ISIS.

A senior adviser to the Kurdistan region's President Nechirvan Barzani told The National that Mr Talabani's arrest was related to a power struggle within the ruling Patriotic Union of Kurdistan party (PUK).

He said Mr Talabani, who is now a leader of the opposition People's Front party, may face “political isolation, the dismantling of his forces and potentially being expelled from Kurdistan”.

A spokesman for the Sulaymaniyah court, Judge Salah Hassan, told Kurdish media outlet Rudaw that arrest warrants were issued for Mr Talabani and other opposition figures due to alleged crimes, without providing details.

An official from the Kurdish city told The National Mr Talabani faces charges of “fraud and swindling”.

The Prime Minister of the KRG, Masrour Barzani, said his office was working with all parties to end the clashes in Sulaymaniyah.

“These disturbances and clashes occurring in Sulaymaniyah are targeting the security and stability of the Kurdistan Region. Therefore, it is necessary for all parties to take responsibility and implement those agreements, ensuring that the youth of this country are not sacrificed,” Mr Barzani said in a statement issued early on Friday.

“Any issues or grievances must be addressed through legal means."

Iraq's federal government in Baghdad also warned that the rule of law must be respected, after the “unfortunate events” in Sulaymaniyah.

The authorities need to "take legal and judicial action in accordance with the provisions of the constitution, and in a manner consistent with the principles of justice and the rule of law”, Sabah Al Numan, spokesman for the commander-in-chief of the armed forces, said.

He also stressed the “importance of implementing these measures with complete impartiality and transparency, away from any armed manifestations or attempts to intimidate citizens”.

Mr Talabani was the co-president of the PUK alongside his cousin Bafel Talabani until 2021. The party controls Sulaymaniyah.

A power struggle between the two pushed his cousin to declare himself the sole leader of the PUK following the dismissal of figures close to Mr Talabani, who was later expelled from the party.

After being expelled, Mr Talabani established his own party and participated in elections for the regional parliament last year, winning two of the 100 seats in the house.

He began to expand his influence, establishing his own special forces and acquiring significant financial interests in the region.

He also started building relationships with the PUK's rival, the Kurdistan Democratic Party, and attempted to forge ties with Iran and Baghdad, which did not sit well with his cousin.

Mr Talabani is the second opposition figure to be arrested in Sulaymaniyah this month, following the detention of New Generation party leader Shaswar Abdulwahid on August 12.

Mr Abdulwahid's party holds 15 of the 100 seats in the autonomous northern region's parliament.

His detention stemmed from a six-month prison sentence handed down in absentia after he repeatedly failed to attend hearings in a defamation case filed by a former member of parliament.

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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.

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“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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