Young Iraqis enjoy lunch at a fast-food restaurant in eastern Baghdad. Reuters
Young Iraqis enjoy lunch at a fast-food restaurant in eastern Baghdad. Reuters

Baghdad has always been one of the world's great cities



In the past few days, there have been a couple of highly publicised displays of confidence in the safety and stability of the Iraqi capital. On Friday, US Marine Brigadier General Austin Renforth went on a stroll of Baghdad's most populous neighbourhoods. Then, on Sunday, the nation's president, Barham Salih, took part in celebrations of the Iraqi army's 98th anniversary in the once heavily fortified Green Zone.

As carefully planned as they might appear, these events back up conversations I have had with UAE-based business people who have visited Baghdad in recent months. All have reported that life there can now be considered increasingly normal. Many say that there is a renewed vibrancy to the city, with a growing number of residents enjoying nights out at restaurants and cafes. Given Baghdad’s reputation, all of this is encouraging and boosts hopes for a stable and prosperous future.

In the longer term, Baghdad is, according to United Nations figures, on the way to becoming a megacity. The accepted definition of a megacity is an urban settlement of more than 10 million people. Now, about 8m live in Baghdad, but it is projected that it will become home to more than 10.5m by 2035. The health of the capital is a key indicator for the broader prospects of a nation that has, up until now, failed to build up any real momentum in terms of political and economic progress.

Modern Iraq is highly urbanised, but the country also has a long history of great cities. Baghdad was founded by the Abbasid caliph Al Mansur in the 8th century as his own capital, separate from traditional regional centres of power, such as Damascus. For 500 years, it was at the centre of an Islamic golden age.

In 1258, the Mongol conqueror Hulagu Khan put paid to that, sweeping through much of western Asia and besieging Baghdad.

Sectarian divisions at court had weakened the caliph and led to the eventual fall of Baghdad. According to contemporary accounts, the Mongols did a proper job on Baghdad, performing the sacking of all sackings.

Legend has it that the Tigris ran red with blood, then black with ink from thousands of books held in the renowned Dar Al Hikma (House of Wisdom) that were looted and thrown into the waters by invading forces. The innovative irrigation networks that allowed agriculture to thrive were also not spared, which had a devastating impact on the city.

In the aftermath, the remaining residents of Baghdad picked themselves up and started again. Eventually, the city re-established itself as a bustling, cosmopolitan place, suffering trials and tribulations along the way. The country came under Ottoman rule from the 16th century until the end of the First World War, after which it fell under British administration. Independence from Britain was achieved in 1932, marking the beginning of the modern state as we know it, with Baghdad officially its capital.

When my mother talks about life in Baghdad in the 1960s and 1970s – when I was born there – she describes a cosmopolitan, progressive city. Even allowing for nostalgia and a certain amount of political tension during those decades, she paints a very different picture to the war and chaos that we have grown used to over recent decades.

Surging state revenue from the Opec oil embargo of the 1970s provided funds for world-class infrastructure and education. This made the dinar strong against foreign currencies, which, in turn, led to a growing and well-travelled middle class.

However, Iraq was being eroded from within, thanks to the corruption of the ruling Ba’ath Party and the machinations of Saddam Hussein. In the summer of 1979, Saddam manoeuvred himself into the presidency. From that point, the decline quickened against the backdrop of an eight-year war with Iran that began in 1980, swiftly followed by the 1990 invasion of Kuwait, which led to the first Gulf War.

The following years have been calamitous. But, somehow – through the Desert Storm campaign of 1991, the slow deprivation of the 1990s sanctions era, the shock and awe of the Iraq war in 2003, the recent civil war and the fight to defeat ISIS – Baghdad has managed to hold on to some of its historical cachet.

While the city now seems to be on a surer footing, it must still overturn perceptions of it as a dangerous and insecure place. Achieving this will take more than a few meticulously orchestrated photo opportunities. Altering people’s preconceived ideas about anything is always difficult, but perhaps more importantly, a thriving economy has been built around security in Iraq. A safe Baghdad would undermine this lucrative industry.

There is also the fear that the current period of relative calm is a temporary lull, while a government continues to be formed after elections held in May 2018. Many believe that once the winners and losers are decided, fighting could once again flare up between different factions.

Only one thing is for sure – that, whatever the future throws at it, Baghdad will endure. That's what it does. As the British novelist and playwright James Elroy Flecker wrote in his 1922 poetic drama The Story of Hassan of Baghdad: "We are they who come faster than fate: we are they who ride, early or late."

Mustafa Alrawi is an assistant editor-in-chief at The National

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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How has net migration to UK changed?

The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.

It then dropped to an estimated 111,000 in the year to June 2020 when restrictions introduced during the pandemic limited travel and movement.

The total rose to 254,000 in the year to June 2021, followed by steep jumps to 634,000 in the year to June 2022 and 906,000 in the year to June 2023.

The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.