President Joe Biden's administration on Thursday signalled support for a bipartisan bill in the Senate that would repeal the authorisations for the wars in Iraq, two decades after the 2003 US-led invasion.
If passed, the bill would end two so-called Authorisations for Use of Military Force — one from the 1991 Gulf War and one passed in 2002 before the invasion.
Critics say the 2002 authorisation has been misused, as it has provided the legal underpinning for US military operations in several countries outside Iraq.
The White House Office of Management and Budget said the bill shares Mr Biden's “long-standing commitment to replacing outdated authorisations for the use of military force”.
The bill cleared a procedural hurdle on Thursday, when the Senate voted 68 to 27 to end debate over the legislation, clearing the way for amendments and a final vote next week.
The White House said the repeal of the two authorisations would have “no impact” on Washington's current military operations in Iraq, where the US maintains a troop presence as part of the anti-ISIS coalition.
“President Biden remains committed to working with the Congress to ensure that outdated authorisations for the use of military force are replaced with a narrow and specific framework more appropriate to protecting Americans from modern terrorist threats,” the statement read.
The 2002 authorisation was originally passed as then-president George W Bush administration’s prepared to invade Iraq based on what turned out to be faulty claims that Saddam Hussein’s regime was stockpiling weapons of mass destruction.
The bill to repeal the authorisation was brought to the Senate with strong bipartisan support as Washington quickly approaches the 20th anniversary of the invasion, which killed or injured hundreds of thousands of Iraqis while leaving about 4,500 US troops dead and tens of thousands more suffering physical and mental wounds.
The bill's sponsors pledged that passing the repeal would “enhance the relationship the United States now has with a sovereign, democratic Iraq”.
“Congress is responsible for both declaring wars and ending them because decisions as important as whether or not to send our troops into harm’s way warrant careful deliberation and consensus,” said Virginia Senator Tim Kaine.
“The 1991 and 2002 AUMFs are no longer necessary, serve no operational purpose, and run the risk of potential misuse. Congress owes it to our servicemembers, veterans and families to pass our bill repealing these outdated AUMFs and formally ending the Gulf and Iraq wars.”
The Senate bill mirrors legislation from the previous session of Congress. A House of Representatives bill led by Congresswoman Barbara Lee passed the House floor by a vote of 268 to 161, with dozens of Republicans voting in favour of repeal.
The last time Congress repealed such an authorisation was the Gulf of Tonkin Resolution, the principal statutory authority for the Vietnam War.
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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.”
