The close results in Iraq's elections between the parties of the two candidates, the prime minister Nouri al Maliki (left) and former prime minister Ayad Allawi, is a sign of strength for the new democracy, one reader says. Ali Abbas / EPA
The close results in Iraq's elections between the parties of the two candidates, the prime minister Nouri al Maliki (left) and former prime minister Ayad Allawi, is a sign of strength for the new democracy, one reader says. Ali Abbas / EPA
The close results in Iraq's elections between the parties of the two candidates, the prime minister Nouri al Maliki (left) and former prime minister Ayad Allawi, is a sign of strength for the new democracy, one reader says. Ali Abbas / EPA
The close results in Iraq's elections between the parties of the two candidates, the prime minister Nouri al Maliki (left) and former prime minister Ayad Allawi, is a sign of strength for the new demo

UAE

Building an Iraqi coalition is part of democracy

That the two main parties will both fall short of an outright majority does not mean that Iraq's democratic process is a failure.

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With reference to Tony Karon's opinion article Flawed system will breed continuous instability in Iraq (March 21): as Iraq's election results unfold, it has become clear that the victorious political alliance, either Ayad Allawi's Iraqi National Movement or Nouri al Maliki's State of Law, will only have a marginal lead and fall short of an outright majority. But, contrary to Tony Karon's commentary, this does not mean that Iraq's democratic process is a failure.

Such a level of competition must be read as a success. Iraq's use of proportional representation ensures that each ethnic and political group is fairly represented in the parliament. Furthermore, the coalition-building process is creating space for political debates that have to overcome sectarian rifts to determine the country's future. Democracy is a long-term process and Iraq's is fledgling but undeniably working, making room for healthy debates needed for a stable country. Pauline Lejeune, US

In reference to the article <>Give us cheaper telecoms says FNC (March 24), I really appreciate the call by Federal National Council members to reduce the telephone charges in the UAE. It's not only that these charges are very high compared to poorer countries but also the quality is very low indeed. In particular, broadband access quality in the UAE remains very poor but the price is very high. The same goes with the SMS services. For example, take the case of Sri Lanka where one can send an international SMS for Rs2 that is equivalent of 6.66 fils whereas if we want to send an SMS to Sri Lanka it cost 60 fils. Shabir Zinudeen, Abu Dhabi

Just a few observations from a UAE telecoms consumer: very high rentals and rates; poor customer service; inadequate training given to 101 call centre staff; slow internet speeds and very high prices as compared to, say, India. Massive profits lead to complacency, poor customer service, and every incentive to maintain the status quo. Adil Ali, Abu Dhabi

Khalifa City A is not a viable alternative to living on the island of Abu Dhabi. I have lived here for two years and the city has deteriorated. It seems to have become the unofficial labour camp of Abu Dhabi. As more affordable housing comes onto the market, companies are using villas as hostels and labour camps. Why are labour camps being built if companies can rent out villas and house their labourers there? I don't feel safe living in the same neighbourhood. There are no pavements and no street lighting in many areas. Rubbish cans overflow in the streets constantly and nobody seems to mind. It's about time the Municipality cleaned up Khalifa City A. Enforce some housing laws and clean up the streets! It's not a nice place to live and not a true reflection of Abu Dhabi. M Raymer, Abu Dhabi

It is important to recognise exemplary service. Amid all the negative press on the student visa issues experienced by applicants from South Asian countries intending to study in universities in the UK, I was recently faced with an almost hopeless situation regarding my son's visa extension, precipitated due to a flawed decision by the Home Office. However, the head of the Entry Clearance Section at the British Embassy in Abu Dhabi was very supportive in facilitating a resolution of the situation in a timely manner and for which I would like to express my gratitude. Such diplomats are, indeed, a credit to the British Foreign Service. Mohammed Hamza, Dubai

In her article Too many legs for me (March 24), Sophia Money-Coutts described her unpleasant encounter with a cockroach in her apartment. I so agree with her. Having grown up in the US in an area that didn't have these monstrosities, I was shocked when I first came to the Middle East. I was traumatised for the first years I lived here. The only thing that solved it was moving out of the city. Now I find them rarely and so my mental state has improved tremendously. Alice Langue, Saudi Arabia

I refer to Hard landing for cargo firms hit by ban on ageing planes (March 19). Transporting goods into difficult areas is a dangerous, but necessary, business. If these firms are not allowed to continue their operations, more than displacement of their families will occur. Aircraft age is not the problem. The real problem is maintenance. John M White, US

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.”

Iraq