Iraqi traffic policemen stand outside the country's biggest ballot warehouse, where votes for the eastern Baghdad district were stored, as a column of black smoke billows from a the building, in the capital Baghdad on June 10, 2018. The fire ripped through the warehouse before a recount ordered by parliament was to take place, according to a security official, with the cause of the blaze not immediately known. / AFP / SABAH ARAR
A fire tore through Iraq's biggest ballot warehouse in Baghdad today. Sabah Arar / AFP

Confusion threatens post-election hopes for stability in Iraq



It is one thing to hold an election; another to follow through on its results.

Since 2003, Iraq has had a complex political system introduced by the American-led occupation and endorsed by the Iraqi constitution.

A fragmented federal multi-party list system has added to the political difficulties facing a country emerging from years of dictatorship and war. However, Iraq’s political system is not unique. A parliamentary system based on an honorary president with large coalitions needed to form a government can often be problematic. Cases in point: Italy and Lebanon.

The intervening time between elections and government formation is challenging because of the uncertainty that it carries – even more so for a country with the challenges facing Iraq.

Nearly a month after the elections, political discussions between parties over government formation have stalled as the results themselves have been called into question.

Iraqi cleric Moqtada Al Sadr’s coalition emerged as the winner, with the largest number of seats in parliament giving him the advantage of naming the incoming prime minister and forming the government.

While he is likely to maintain that lead, his position could be challenged. There are more than 31 parties in Iraq and a disparity of only a few seats between the top five parliamentary lists.

A recount could change the fortunes of one or more parties. Today, the results and how they came about are now in question.

Various politicians, including Prime Minister Haider Al Abadi, claim that the results need to be investigated due to allegations of fraud. The electoral commission denies this. Little evidence has been produced to that effect, except for some instances in Suleimaniyah and Kirkuk.

The initial results gave rise to hopes of a non-sectarian, nationalist government emerging. Those hopes might yet be dashed.

The objections raised about the electoral process and results have become so numerous, most Iraqis are struggling to follow their details.

Last week, parliament passed a law to mandate a manual recount of the votes, along with the replacement of members of the Independent Higher Electoral Commission with judges.

The commissioners plan to appeal against the law, stating that the very independence of the commission is being undermined. Last Wednesday’s parliamentary vote saw members of parliament who had lost out in the most recent elections attack the legitimacy of the process that cost them their seats.

Questions abound as to whether those MPs would have contested the results so strongly had they won.

Political pressure on the commission is compounded with the assumed guilt of its members after a blanket travel ban was imposed on them.

Ironically, the May 12 poll was meant to be the election with the least incidence of fraud as an electronic counting system was introduced.

The new technology was feted as safeguarding all ballot boxes. But in reality, instances of intimidation outside a few polling stations, mixed with delaying tactics and significant claims of fraud, have cast partial doubt on the results.

Elections where one aspect is questioned end up facing scrutiny across the board.

The involvement of the judiciary is a significant test for Baghdad. Iraq has a complex legal system that includes the Higher Judicial Council, the Supreme Court, the Court of Cassation, the Public Prosecution Department and the Judiciary Oversight Commission – to name just a few.

While the executive and legislative branches of government are currently in flux, the judiciary must be safeguarded from political manipulation.

It is unclear how long the manual recount will take but the expectation is that government formation will now be delayed by at least several weeks.

A low voter turnout of 45 per cent in the elections has already led to questions about how reflective it was of the Iraqi people’s will.

With doubt about the validity of some of the ballots cast, Iraq’s politics are heading for more troubled times.

Meanwhile, the country is not yet out of the woods when it comes to ISIS. Militants are adopting a “wait and see” approach while political rivalries play out. They can seize any opportunity to undercut the political process they have declared war on.

Likewise, infighting between different political factions with militias could lead to an uptick in violence. Areas where the results are in question are most affected, as witnessed with attacks in Kirkuk and Diyala over the past week.

However, it is worth remembering that the areas which ISIS controlled had a high voter turnout. West Mosul, which suffered most under ISIS, had the highest percentage of voters.

That endorsement is not one to be disregarded or taken lightly. To challenge extremists, the political system must be seen as a legitimate and reliable system of rule.

All parties in Iraq – and those supporting it, like the United Nations – need to agree how to deliver on the results of the elections and restore confidence in them.

__________

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Email sent to Uber team from chief executive Dara Khosrowshahi

From: Dara

To: Team@

Date: March 25, 2019 at 11:45pm PT

Subj: Accelerating in the Middle East

Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.

Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.

I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.

This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.

It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.

Uber on,

Dara

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Company name: Klipit

Started: 2022

Founders: Venkat Reddy, Mohammed Al Bulooki, Bilal Merchant, Asif Ahmed, Ovais Merchant

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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.”

COMPANY PROFILE

Name: Qureos
Based: UAE
Launch year: 2021
Number of employees: 33
Sector: Software and technology
Funding: $3 million

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