French President Emmanuel Macron on a visit to Zitouna mosque in Tunis earlier this year. AFP
French President Emmanuel Macron on a visit to Zitouna mosque in Tunis earlier this year. AFP
French President Emmanuel Macron on a visit to Zitouna mosque in Tunis earlier this year. AFP
French President Emmanuel Macron on a visit to Zitouna mosque in Tunis earlier this year. AFP

Macron's vision for French Islam may present him with his biggest challenge yet


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In perhaps the biggest gamble of his risk-taking French presidency, Emmanuel Macron is considering a bold constitutional change affecting Muslims as part of his strategy to combat extremism.

Mr Macron’s initiative to formally organise Islam in France was originally promised in the first half of the year. After repeated delays, driven by the deep sensitivities of the task he has set himself, it is now expected in the new year.

Reports in the country’s media suggest it may include a proposal to amend a cornerstone of French society: the 1905 law separating church and state; a distinction cherished in the country’s secular republican tradition.

This would enable assistance for religious institutions from public funds, which is not permitted under the law as it stands. The aim of this approach would be to end the reliance on overseas funding for new mosques, their upkeep and the training of imams, facilitating a more structured system, even in relatively poor areas where Muslim leaders find matters of funding and organisation to be particularly challenging.

Because secularism is so rooted in France, a principle that unites natural enemies on the left and right, such a step would arouse fierce opposition across the political spectrum.

Macron is already among the most unpopular French presidents of recent times. Given how unhappy the French electorate became with Francois Hollande, Nicolas Sarkozy and Jacques Chirac, that is saying a lot. Many who last year welcomed the election victory of the youngest president in French history now dismiss it as, above all, a vote against his far-right opponent Marine Le Pen.

Portrayed by the left as a “president for the rich”, Macron has also been the target of two far-right assassination plots. The latest involved a foiled plan to stab him with a ceramic knife during ceremonies marking 100 years since the end of the 1914-1918 war.

Part of the reason for his broader unpopularity – one recent poll put his approval rating as low as 21 per cent − is his commitment to changes in social and economic policy that he believes are essential to France's future. The French tend to nod in approval when presidents promise reform, only to recoil in horror once it threatens to affect them.

Mr Macron has confronted powerful groups, including militant railway workers accustomed to getting their own way. Teachers, pensioners and motorists hit by cuts and soaring fuel prices have protested, and ministers have departed in despair. But the president has generally shown a strikingly non-French resolve to tough it out.

On France and Islam, the Elysee Palace insists that the president's deliberations remain incomplete. But the magazine L'Opinion claims to have seen a preliminary draft of what Mr Macron will say when he finally outlines his vision for the way France's largest religion after Catholicism should be structured.

It is widely accepted, by a number of Muslim observers as well as mainstream political figures, that the present organisation of Islam in France is fragmented and often dependent on foreign benefactors. However, many Muslims are suspicious of state interference that excludes them from consultation processes. The country’s biggest representative body, the French Muslim Council, bitterly complains that this is exactly what has happened.

Among other suggestions the president has considered is the idea of a "halal tax" − a small levy, collected by Muslims themselves, on halal products, pilgrimages and donations.

The idea was floated in a report for the Montaigne Institute, a leading French think tank, and submitted to Mr Macron by Hakim El Karoui, a French banker-turned-academic whose uncle, Hamed Karoui, served as Tunisian prime minister for 10 years.

Mr El Karoui said the proceeds could fund mosques, the training and remuneration of imams, and projects to oppose both anti-Muslim xenophobia and what he controversially described as “the anti-Semitism shown by some Muslims”. Reaction, on all sides, was mixed.

But Mr Macron’s approach has not been without contradictions. He talks of wanting a “dispassionate” debate about secularism. Yet, he also said that his proposed new initiative was intended to ensure that Islam is “practiced everywhere in accordance with the laws of the republic”. And his current open-mindedness about changing the 1905 law seems at odds with a formal pre-election declaration that an amendment would not be justified.

More than anything, the evolution of his thinking demonstrates the mental acrobatics French political figures perform when trying to grapple with the complexities of achieving “vivre ensemble” − living together in harmony – with Europe’s largest Muslim population.

Mr Macron knows he is not the first holder of high French office to flirt with the notion of fundamental change.

When, in 2004, Nicolas Sarkozy was an interior minister committed to moving Islam from makeshift prayer rooms in garages and tower block basements – isolated, rundown places, where he believed that extremism could flourish − he wrote that with modification of the law, all French towns might have adequate, well-run mosques of their own. After drawing howls of protest from fellow conservatives, he allowed presidential ambition to prevail.

In the months to come, France will learn whether Mr Macron is ready to embrace a new era in his state’s relations with Islam, or bow like Mr Sarkozy to electoral pragmatism.

Colin Randall is a former executive editor of The National

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Girls full-contact rugby may be in its infancy in the Middle East, but there are already a number of role models for players to look up to.

Sophie Shams (Dubai Exiles mini, England sevens international)

An Emirati student who is blazing a trail in rugby. She first learnt the game at Dubai Exiles and captained her JESS Primary school team. After going to study geophysics at university in the UK, she scored a sensational try in a cup final at Twickenham. She has played for England sevens, and is now contracted to top Premiership club Saracens.

----

Seren Gough-Walters (Sharjah Wanderers mini, Wales rugby league international)

Few players anywhere will have taken a more circuitous route to playing rugby on Sky Sports. Gough-Walters was born in Al Wasl Hospital in Dubai, raised in Sharjah, did not take up rugby seriously till she was 15, has a master’s in global governance and ethics, and once worked as an immigration officer at the British Embassy in Abu Dhabi. In the summer of 2021 she played for Wales against England in rugby league, in a match that was broadcast live on TV.

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Erin King (Dubai Hurricanes mini, Ireland sevens international)

Aged five, Australia-born King went to Dubai Hurricanes training at The Sevens with her brothers. She immediately struck up a deep affection for rugby. She returned to the city at the end of last year to play at the Dubai Rugby Sevens in the colours of Ireland in the Women’s World Series tournament on Pitch 1.

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Favourite pet: cats. She has two: Eva and Bito

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Hobby: Running. "I like to think I’m artsy but I’m not".

Favourite move: Romantic comedies, specifically Return to me. "I cry every time".

Favourite spot in Abu Dhabi: Saadiyat beach

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Teams

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How will Gen Alpha invest?

Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.

“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.

Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.

He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.

Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”

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Biog

Mr Kandhari is legally authorised to conduct marriages in the gurdwara

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Father of two sons, grandfather of six

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Walks for an hour every morning

Completed a Bachelor of Commerce degree in Loyola College, Chennai, India

2019 is a milestone because he completes 50 years in business

 

Labour dispute

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- Abdullah Ishnaneh, Partner, BSA Law 

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.”