After the startling attack on the Karrada district of Baghdad, Iraqis will be hoping that this latest attack was the last gasp of ISIL as it is driven out of areas around the capital.
Iraq is facing an extremely difficult security environment. Mosul is still under ISIL control. Fallujah has just been liberated – indeed, that may well have been the reason for the Baghdad attacks, as ISIL throws its last resources at the capital before retreating north to Mosul.
But the real battle, both in Fallujah and in Baghdad, is political. Prime minister Haider Al Abadi staked much of his authority on retaking Fallujah. Now that he has, he still finds himself beset by political challenges, on the battlefield and off it.
Mr Al Abadi, for all the challenges, is doing reasonably well. The Fallujah battle was over far more quickly than observers, especially western military observers, expected. The destruction, while vast, was not as bad as predicted. The refugee crisis created is severe.
Yet the battle for Fallujah also contained within it seeds of discontent. Fallujah was retaken with support from Iranian-backed militias, who are alleged to have committed atrocities against Sunni civilians.
Mr Al Abadi, to his credit given his reliance on the Shia-dominated Popular Mobilisation Forces military coalition, has made sure arrests were carried out and has pledged to investigate cases in Fallujah.
Yet a delicate balancing act is required, especially in the mainly Sunni city of Fallujah. About 100,000 civilians have been displaced, around a third of Fallujah’s population, and many of them are in makeshift camps on the outskirts. Returning them to their homes will be essential if Fallujah is to return to normal – and keeping them onside will be essential to ensuring ISIL cannot return.
But if the Shia militias remain in Fallujah, many of these Sunni civilians will not feel safe returning. Which leaves Mr Al Abadi with a conundrum: removing the militias from Fallujah means security could suffer. Leaving them in place means Sunni Iraqis will not return or there may be sectarian clashes – which would again mean security would suffer.
Back in Baghdad, too, there are troubles, although the focus on Fallujah temporarily shifted attention from Mr Al Abadi’s problems in parliament.
Little noticed by the international community, the country’s top court invalidated his technocratic cabinet. It did so by declaring the parliamentary session in which members had voted for the changes unconstitutional – creating a significant crisis that will only become apparent in a couple of weeks once parliament resumes.
For months, Mr Al Abadi has sought to change the composition of his cabinet, giving posts to technocrats rather than doling them out along sectarian lines, as the post-US-invasion system requires.
Parliamentarians, reluctant to give up the power and privileges that come with such political blocs, had refused to accept the cabinet. In April, under intense pressure from supporters of Shia cleric Muqtada Al Sadr, who protested outside the Green Zone in Baghdad, enough parliamentarians agreed to push the vote through. It was, naturally, questionable democratically, but Mr Al Abadi’s allies saw no other way to change the system of sectarian allocations.
Now that new cabinet has been overturned, meaning that when parliament resumes this month, the whole debate is likely to start again.
So far, Mr Al Abadi is proceeding inch by inch. Having won in Fallujah, he may find himself in a better position to face down his critics. But it will require a delicate balancing act.
The same forces are at play in the Baghdad parliament as on the streets of Fallujah. Shia groups in parliament and their backers are especially unwilling to give up any power. And indeed, any reduction in their power will increase instability in the country, as their supporters take to the streets.
And yet without a reduction in their power, Mr Al Abadi will not be able to genuinely reconcile with Sunni Iraqis, who have been cut off from ample representation. Without Sunni representation, any peace in the country will be merely temporary.
What is happening on the battlefield in Fallujah and what is happening in the grand halls of Baghdad’s parliament are then subject to the same political pressures.
It is in the spaces between the buildings of Fallujah and the political struggles in Baghdad that reconciliation will have to be found. And the answers Mr Al Abadi offers must be similarly nuanced, because the stakes, as the twin bombings in Baghdad last weekend show, could not be higher.
falyafai@thenational.ae
On Twitter: @FaisalAlYafai
The Bio
Favourite place in UAE: Al Rams pearling village
What one book should everyone read: Any book written before electricity was invented. When a writer willingly worked under candlelight, you know he/she had a real passion for their craft
Your favourite type of pearl: All of them. No pearl looks the same and each carries its own unique characteristics, like humans
Best time to swim in the sea: When there is enough light to see beneath the surface
Company Profile
Company name: OneOrder
Started: October 2021
Founders: Tamer Amer and Karim Maurice
Based: Cairo, Egypt
Industry: technology, logistics
Investors: A15 and self-funded
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The Africa Institute 101
Housed on the same site as the original Africa Hall, which first hosted an Arab-African Symposium in 1976, the newly renovated building will be home to a think tank and postgraduate studies hub (it will offer master’s and PhD programmes). The centre will focus on both the historical and contemporary links between Africa and the Gulf, and will serve as a meeting place for conferences, symposia, lectures, film screenings, plays, musical performances and more. In fact, today it is hosting a symposium – 5-plus-1: Rethinking Abstraction that will look at the six decades of Frank Bowling’s career, as well as those of his contemporaries that invested social, cultural and personal meaning into abstraction.
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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
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Business Insights
- As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
- SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income.
- Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
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Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh132,000 (Countryman)
'Of Love & War'
Lynsey Addario, Penguin Press