Turkish President Recep Tayyip Erdogan on Thursday dismissed a university rector whose appointment in January led to protests by students and staff.
Melih Bolu was dismissed from his post at Istanbul’s prestigious Bogazici University in the same way he was appointed – a midnight presidential decree published in the Official Gazette.
The shock announcement led to celebrations among students and staff at Bogazici, one of Turkey’s best-regarded universities.
“It was totally unexpected,” said history student Enes Sayin. “People are really happy but we know the protests aren’t over. It’s a small victory but we don’t know what’s going to happen now. But today we’re happy.
“This is the first time in a long time that President Erdogan took a step back.”
Prof Bolu’s appointment led to daily protests that continued on Thursday as faculty members demonstrated against government interference in academic freedom.
Placing Prof Bolu, a former member of Mr Erdogan’s Justice and Development Party who once applied to be an election candidate, as rector of Bogazici was a departure from previous appointments from within the university’s staff.
His appointment was the first from outside the university since a military coup in 1980.
Peaceful demonstrations led to hundreds of arrests and police brutality against students. Senior government figures attempted to demonise the protesters by labelling them terrorists and using homophobic slurs.
Founded in 1863 by an American philanthropist and a missionary, Bogazici, or Bosphorus, University counts former prime ministers, captains of industry and leading artists among its alumni.
Prof Bolu appears to have been uninformed about the decision to sack him and posted a comment on his Instagram account calling it “unfounded news”. He later closed the account.
No reason was given for his dismissal but it reportedly came after a meeting of the Council of Higher Education on Wednesday that discussed Prof Bolu’s six-month tenure. A report was later sent to Mr Erdogan.
There have also been claims of plagiarism relating to Prof Bolu’s PhD thesis.
His deputy, Mehmet Naci Inci, was announced as an interim replacement. Prof Inci was one of the few Bogazici faculty members to recognise Prof Bolu’s appointment, breaking ranks with colleagues who staged daily protests in which they stood with their backs to the rector’s office.
The students and academics will now focus on putting forward a candidate for a new rector, as well as fighting the restrictions and security measures imposed on campus during Prof Bolu’s tenure.
“It’s undoubtedly a significant victory but that’s only a fraction of what we want,” said Feyzi Ercin, a cinema and music lecturer barred from teaching at the university under Prof Bolu.
“Our goal was to show that the appointment was incorrect and [now] our main goal is to get a rector elected. The fact that there is a victory right now gives everyone a lot of morale and strength. But from now on, it's going to be a new journey, different from what’s happened so far.”
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.”
Cultural fiesta
What: The Al Burda Festival
When: November 14 (from 10am)
Where: Warehouse421, Abu Dhabi
The Al Burda Festival is a celebration of Islamic art and culture, featuring talks, performances and exhibitions. Organised by the Ministry of Culture and Knowledge Development, this one-day event opens with a session on the future of Islamic art. With this in mind, it is followed by a number of workshops and “masterclass” sessions in everything from calligraphy and typography to geometry and the origins of Islamic design. There will also be discussions on subjects including ‘Who is the Audience for Islamic Art?’ and ‘New Markets for Islamic Design.’ A live performance from Kuwaiti guitarist Yousif Yaseen should be one of the highlights of the day.
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
