An elderly Tunisian man arrives with his wife to vote in a referendum on a draft constitution put forward by President Kais Saied, on July 25, 2022. AFP
An elderly Tunisian man arrives with his wife to vote in a referendum on a draft constitution put forward by President Kais Saied, on July 25, 2022. AFP
An elderly Tunisian man arrives with his wife to vote in a referendum on a draft constitution put forward by President Kais Saied, on July 25, 2022. AFP
An elderly Tunisian man arrives with his wife to vote in a referendum on a draft constitution put forward by President Kais Saied, on July 25, 2022. AFP


Does Tunisia's new constitution offer the turning point the country needs?


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July 26, 2022

A constitution lays out the guiding principles for any country. Its text is meant to stand the test of time. Yesterday, Tunisians went to the polls to cast their vote on a new constitution as the country continues to forge its way in a new political reality a decade after the end of President Zine El Abidine Ben Ali's reign.

Turnout was expected to be low, given the summer heat and the fact that most of the country’s political parties urged their supporters to boycott the vote. But the constitution, proposed by the country’s President, Kais Saied, is nonetheless expected to pass. Those voting in favour of it hope that it spurs sorely needed change in a country that for too long has been in the throes of political and economic crises.

The country’s previous constitution, passed in 2014, stood out for being the first in its history to be drafted by a diverse array of groups with competing political interests and priorities. Its passage with 200 votes in favour in the country’s 217-member Constituent Assembly was a victory for cross-party compromise.

But the rivalries, divisions, turmoil and corruption that have dogged Tunisian governments in the years since have shown the pitfalls of a founding document that, to a great extent, served to paper over the deep divisions between parties. Tunisia’s economy has been trapped in a persistent downward spiral – inflation is rampant; public debt is out of control; and youth unemployment is critically high. For most, the sheen that party politics took on after the popular uprising of 2011 has worn off.

If Tunisian parties' differences are reconcilable, nearly a decade under the current system has failed to show it

This explains the widespread popularity of Mr Saied, who came to power on an anti-corruption platform in 2019. A year ago, after Mr Saied sacked the government and suspended Parliament, his approval rating was more than 80 per cent. In September 2021, Mr Saied partially suspended the 2014 constitution, announcing his intention to put a “reshaped” model to a nationwide referendum.

The scale of Mr Saied’s self-decreed “extraordinary measures” has raised questions about checks and balances. Even so, a majority of Tunisians continue to support the President, hoping that his efforts, however extreme, to disentangle the Gordian knot of Tunisia’s political disarray, and to resuscitate the economy, will pay off.

While the need for a new constitution that brings dramatic change is clear, the shape of the document – as Mr Saied has previously implied – matters. As does the process by which it is realised.

And while there are questions about the level of power the executive branch of office will hold, Mr Saied has taken steps to preserve in the new constitution certain fundamental civil rights and freedoms, such as the right to protest, the freedom of belief and equality between the sexes. Many Tunisians had feared the erosion of the latter two under previous democratically elected, Islamist-led governments.

The old Tunisian constitution’s fatal flaw was that it made the country’s politics too wide a tent – extremist political parties captured the public square, and emptied the public purse fighting one another to advance their own, narrow interests. Mr Saied says his mission remains changing all of that. His new constitution certainly gives him the tools to do it, even if it does not immediately inspire confidence as a unifying document. If Tunisia is to eventually reach a place where positive changes last, the proof will come not only in this new constitution, but in how it is used.

Key figures in the life of the fort

Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.

Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.

Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.

Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.

Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.

Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.

Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.

Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.

Sources: Jayanti Maitra, www.adach.ae

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Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

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Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

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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Updated: July 26, 2022, 4:00 AM