Sudan's President Omar Al Bashir addresses the nation on the eve of the 63rd Independence Day anniversary at the Presidential Palace in Khartoum. Reuters
Sudan's President Omar Al Bashir addresses the nation on the eve of the 63rd Independence Day anniversary at the Presidential Palace in Khartoum. Reuters

Sudanese president orders probe of recent protests



Sudan's president has ordered an investigation into "recent events" in the country, a reference to two weeks of violent protests against his 29-year rule, the state news agency reported as Omar Al Bashir seeks to placate popular anger over his autocratic rule and economic policies.

According to the report late on Monday, Mr Al Bashir tasked Justice Minister Mohammed Ahmed Salem with leading the probe committee, but gave no details on what exactly it would investigate.

The development follows calls by Western nations, including the United States and Britain, and rights groups for authorities in Sudan to investigate the use of lethal force by security forces against demonstrators. It also follows unconfirmed reports that Mr Al Bashir's political rivals may have engineered an acute shortage of fuel and other basic commodities to whip up anger against the government.

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Read more:

Chaos in Khartoum as Sudanese forces break up protest against Omar Al Bashir

Persistent protests testify to deep-rooted anger in Sudan

Sudanese activists vow not to back down against Bashir

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Authorities have said that 19 people died in the protests, while Amnesty International said it has "credible reports" that 37 died in the first five days of protests. Human Rights Watch said on Monday that independent groups monitoring the situation in Sudan have put the death toll at 40 since the protests erupted on December 19.

President Al Bashir on Monday sought to defuse the anger sweeping the country, reassuring the Sudanese of better days ahead and pledging more "transparency, effectiveness and justice in all our national institutions" in an address to the nation marking the anniversary of Sudan's independence 63 years ago.

"Our country is going through pressing economic conditions that have hurt a large segment of society," he said. "We appreciate this suffering, feel its impact and we thank our people for their beautiful patience."

Mr Al Bashir said the 2019 budget would maintain state subsidies on many commodities, raise wages, refrain from introducing new taxes and do more for the poorest. He did not elaborate.

Sudan's economy has stagnated for most of Mr Al Bashir's rule. He has also failed to unite or keep the peace in the religiously and ethnically diverse nation, losing three quarters of Sudan's oil wealth when the mainly animist and Christian south seceded in 2011 following a referendum.

Critics charge that rampant corruption — protesters have been chanting against the "government of thieves" — is eating up a significant part of government funds and engineering shortages of basic items to manipulate prices.

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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