Hakim El Karoui is a senior fellow at Institut Montaigne and a senior partner with Brunswick
April 15, 2022
The final round of the French presidential election, scheduled for April 24, is shaping up to be a much closer contest than it was five years ago, when Emmanuel Macron defeated Marine Le Pen by more than 30 percentage points. As to why it is harder to predict the outcome this time, it is important to understand both candidates' strategies and the dynamics that have been at play in the run-up to this year's vote.
Ms Le Pen's success in reaching the runoff after a strong first-round showing last weekend has surprised many, given that only a few months ago she had faced a stiff challenge from Eric Zemmour, a fellow polemicist and far-right figure. The two had been neck-and-neck in early polling and many leading figures, including Ms Le Pen's niece, Marion Marechal, had left her National Rally party to support Mr Zemmour, a former journalist. But at a time when she seemed more isolated than ever, she made the astute choice of reaching out to France's working classes and talking about bread-and-butter issues. Instead of simply banging on about migrants entering the country and its minorities being different from "native" French people – constant refrains in her political discourse over the years – she focused on the rising cost of living.
This strategy has paid off, as she secured 23.2 per cent of the national vote in the first round – second only to Mr Macron's 27.9 per cent – while Mr Zemmour fetched just 7.1 per cent.
Ms Le Pen's success can be attributed partly to her presentation of herself as ideologically unclassifiable. She has talked about "migratory submersion" – a euphemism for what she views to be excessive immigration – and her programme remains very much of the right, but one could argue that she is no longer beholden to any one political ideology or believes in anything save for her own personal destiny. Her proposed solutions to some of the country's economic problems are decidedly left-wing, including her pitch for a stronger welfare state, which prompted Mr Zemmour to call her a "socialist". He may have had a point, yet it was he who lost in the end.
Mr Zemmour's mistake was to believe that in order to win the presidency, it was necessary to offer voters a clear, if rigid, ideological framework. But not only did his constant harking back to the country's past betray a lack of understanding of contemporary France, his perspective appeared disingenuous as well. They are so extreme at times that many voters suspect they are more talk than walk.
In one sense, Ms Le Pen should credit Mr Macron for her impressive run, having borrowed generously from the latter's 2017 playbook by building a more broad-based coalition this time.
Ms Le Pen's base is, unsurprisingly, comprised largely of the lower socio-economic strata of French society. While she hasn't been able to rally all of the country's working classes, she has attracted the less-educated sections of the population with low or average incomes and who live in regions currently undergoing de-industrialisation. She has also drawn support from the country's south, home to the generally conservative "pieds noirs", people of French and other European origins who were born in Algeria during the period of French rule from 1830 to 1962.
Far-right candidate Marine Le Pen has toned down her nativist platform and focused instead on the economy. AP
Le Pen's success can be attributed partly to her presentation of herself as ideologically unclassifiable
Despite Ms Le Pen's strengths, however, Mr Macron remains a formidable candidate.
Apart from his advantage as the incumbent, the President recently secured much-needed endorsements from a number of his rivals in the race after they were eliminated after the first round. Clearly, there continue to be concerns across the political spectrum about the direction in which a "President Le Pen" could take France.
Mr Macron, though, faces a number of hurdles and cannot rely on endorsements alone to win. For one, he is obviously not the same politician he was in 2017. Back then, he was a young and exciting upstart. Now, he is the face of the establishment, and facing the headwinds of anti-incumbency. His voters have changed, too: his base is much older today, and belongs to the upper crust of French society. They have high incomes, live in big cities and mostly reside in the country's relatively well-off western region.
To his advantage, in the first round, Mr Macron managed to corral votes from the traditional centre-left and centre-right wings of the polity, both of which have been hollowed out in recent years. That the Socialist Party candidate garnered only 1.8 per cent of the vote and the centre-right Republican candidate finished with just 4.8 per cent speak to an ongoing churn in French politics.
An endorsement from former president Nicolas Sarkozy, a centre-right politician, will further burnish the current incumbent's credentials with that section's supporters, but that also means the President risks being pigeon-holed as the poster child of the "bourgeois bloc".
Incumbent leader Emmanuel Macron is expected to win most of France's Muslim vote. AFP
The country's minorities, particularly its Muslim population, will undoubtedly vote, by and large, for Mr Macron. But given they are just 8 per cent of the total population and represent only about 3 per cent of the registered voters, they are unlikely to swing the election in his favour.
Having secured the centre but unlikely to win the far right, which Ms Le Pen has virtually locked up, Mr Macron will need to clinch the far-left vote, which went to Jean-Luc Melenchon in the first round, if he wants to win the runoff.
Mr Melenchon endorsed Mr Macron, and made a passionate plea to his supporters to do their bit to ensure Ms Le Pen does not win. Yet, in order to excite this section of the electorate, which is young and better-educated, the President may need to find a way reinvent himself – as he himself acknowledged he needed to do last week. More importantly, he will be required to convince them that he remains the best person to tackle issues that they care about, such as climate change. Mr Macron has often talked the talk on the environment, but his record on climate mitigation remains spotty. Will the left give him a second chance? It is genuinely hard to say.
One thing is for sure: whoever wins on April 24 will have a number of difficult issues to grapple with from the get-go: France's place in Europe, the war in Ukraine, the Covid-19 pandemic and Paris's energy policy and defence posture, among others. There is also the question of how to increase ordinary people's purchasing power while reducing the strain on public finances. None of these are easy questions to answer.
And finally, given the extent to which political polarisation has occurred in France, the biggest challenge for the next leader will be to unite the nation and ensure that no one is left behind. This is, of course, easier said than done.
Originally, The Club (which many people chose to call the “British Club”) was the only place where one could use the beach with changing rooms and a shower, and get refreshments.
In the early 1970s, the Government of Abu Dhabi wanted to give more people a place to get together on the beach, with some facilities for children. The place chosen was where the annual boat race was held, which Sheikh Zayed always attended and which brought crowds of locals and expatriates to the stretch of beach to the left of Le Méridien and the Marina.
It started with a round two-storey building, erected in about two weeks by Orient Contracting for Sheikh Zayed to use at one these races. Soon many facilities were planned and built, and members were invited to join.
Why it was called “Nadi Al Siyahi” is beyond me. But it is likely that one wanted to convey the idea that this was open to all comers. Because there was no danger of encountering alcohol on the premises, unlike at The Club, it was a place in particular for the many Arab expatriate civil servants to join. Initially the fees were very low and membership was offered free to many people, too.
Eventually there was a skating rink, bowling and many other amusements.
Frauke Heard-Bey is a historian and has lived in Abu Dhabi since 1968.
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: ARDH Collective
Based:Dubai
Founders:Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi