Mustafa Al Kadhimi completes one year since being named Iraq’s prime minister this week, a week in which he is also embarking on a strategic dialogue with the US. He has just completed an historic visit to the UAE, after earlier visits to Saudi Arabia and Jordan.
He is a man in a hurry, as Iraq faces daunting challenges but also abundant opportunities, and by October there will be elections that could upend the current government.
In an exclusive interview with The National during his visit to Abu Dhabi, Mr Al Kadhimi stressed the importance of holding early elections, despite calls to delay them. The government has worked closely with the Iraqi High Commission for Elections and oversaw reforms.
“The main mission for my government is to hold early, fair and secure elections that are conducted with integrity, he said.
He insisted that elections will take place on October 10 and “we must all make sure it succeeds”, but he will not be contesting the poll.
“The government will provide a balancing act between those contesting the elections and I will not be a competitor in it. That way we can give the elections more credibility,” he said.
Mr Al Kadhimi said that, in addition to preparing the country for elections, “we have pursued priorities like stabilising the economic situation during an economic crisis that targeted the world, and facing the Covid-19 pandemic and protecting Iraq from sliding into an open war between other countries, in addition to enacting a reform agenda that includes the government’s White Paper on Reform”.
He has faced strong opposition from armed militias who see his reform programme as a direct attack on their interests.
When asked about how he plans to tackle the proliferation of armed groups, he said: “From day one, I have been speaking about the crisis of the proliferation of arms outside of state control, this is a challenge to the entire state.
“This is a just battle that Iraqis are waging to protect their state and the stability of their societies.”
When referring to “armed groups”, Mr Al Kadhimi differs from his predecessors in that he refers to them as “outlaws” and “organised crime groups”, even though he doesn’t name them directly, saying some of them are linked to drug dealing, smuggling and even some tribal elements who are seeking to enforce their own laws.
The prime minister said that “armed tribes” have largely been tackled by the government and that “dozens of members from armed groups and drug dealers are not detained in prison”.
There are “dozens of detainees who have wanted to target our security”, he said, without divulging identities or affiliations.
One recent development in Iraq, and particularly over the past year, has been the emergence of armed groups with new names. However, many of their members are affiliated with some of the more established groups.
“Some of those outlawed groups come up with new names thinking they can act with impunity,” he said, “but this is evidence of the strength of the state and the rule of law, as those who make up new names are trying to escape the law, but we are aware of them”.
The prime minister agreed that there are challenges to the state and its strength, but he insisted “the state is able to enforce its stature in every part of Iraq and on every level and there is renewed confidence in the national armed forces”.
“This is a gradual rebuilding that has been taking place over the past few months, but requires years,” he said.
Mr Al Kadhimi is banking on “the majority of Iraqis” who he believes want “a strong state emerging victorious”, and believes that there is “collective rejection of uncontrolled arms under any slogan.”
“This is the popular position and that is our source of confidence, that the state and the rule of law and rejection of intimidation and blackmail is the only way forward”.
Mr Al Kadhimi came to office after months of popular protests that began in October 2019 to demand an end to corruption and militia rule.
More than 700 protestors and activists were killed during that period and Mr Al Kadhimi took high office promising to curb corruption and protect the protestors, but also to hold those responsible for the killing to account.
Weeks after Mr Al Kadhimi formed his government, Hisham Al Hashimi, a well-known analyst who was a civic activist and in close contact with a number of officials, including Mr Al Kadhimi, was killed outside his home.
Mr Al Kadhimi promised to find and prosecute the perpetrators. However, since the killing in July 2020, no one has been arrested or even named as a suspect.
Asked about the delay, Mr Al Kadhimi said: “The martyr Hisham Al Hashimi is a victim of political assassination and we have many facts about the assassination attempt.
“We have promised to punish the perpetrators and we will, and we also said that choosing the time to announce more details depend on legal and technical issues”.
Mr Al Kadhimi responded to criticism about the delay by pointing to the government’s ability to apprehend the killers of another activist, Ahmed Abdul Samad in Basra, and others.
“The blood of Al Hashimi and other martyrs is our cause. This government is acting with seriousness against every person responsible for the spilling of Iraqi blood”.
A key driver of protests and a key problem facing Iraq is corruption.
Mr Al Kadhimi concurs that there have been false promises in the past in dealing with corruption, but insists that his government is different.
He has tackled some of the most vulnerable areas susceptible to corruption, including custom controls, but much remains to be done.
One major challenge Iraq has faced since 2003 is that of energy and the dependence of gas imports from Iran, despite Iraq being one of the richest countries in hydrocarbons.
Mr Al Kadhimi said: “The issue of energy and expanding its production and diversification, in addition to securing electricity sources, have been a focal point for this government since its inception.”
He referred to years of negligence, giving as an example the Iraq building gas-fired electricity stations since 2003, despite the fact it does not produce gas.
“On the contrary, Iraq wastes gas,” he said, in reference to gas flaring. Mr Al Kadhimi said the government is working with leading international companies to invest in Iraqi gas and to prevent financial and environmental damage from flaring.
However, he said these investments will “take years”, meaning that Iraq will have to continue importing gas – primarily from Iran – or face a major electricity shortage.
Iraq has sought waivers from the US to continue importing gas from Iran and it seems it will continue to do so for the near future. Mr Al Kadhimi, however, is also focused on the need to invest in renewable and clean energy sources: “We have issued a number of licences for alternative energy sources, particularly solar energy.”
Speaking about his visit to the UAE, Mr Al Kadhimi said: “This is a very important visit for Iraq, and helps in returning the country to its Arab fold.
“We are building our relations and partnership with the UAE across a number of areas, including economic ties and the future of the region.”
“The UAE investment fund of $3 billion will change a lot of Iraq’s economic reality and especially when it comes to UAE companies that are known as international companies with important experience.”
The UAE has also provided important support for Iraq through a $50 million fund to help restore the historic Al Nouri Mosque and Al Tahera and Al Saa’a churches.
Mr Kadhimi said: “I thank the UAE for its humanitarian positions of solidarity with Iraq, it is an extension of [Founding Father] Sheikh Zayed who always stood by Arabs and the current leadership does the same.
“Reconstructing Al Nouri Mosque is an important historical moment, it is part of the conscience of Iraqi Muslims and part of human civilisation and the UAE is playing an instrument role.”
As for the reconstruction of Mosul, the prime minister promised “a campaign” to reconstruct the city that was destroyed by ISIS and the military campaign to liberate it.
Since liberation in 2017, reconstruction has been slow. Mr Al Kadhimi is now leading a committee with a number of ministers and the governor of Mosul Najim Al Jubouri to oversee reconstruction.
He said the UAE and France will play a significant role in this rebuilding.
“The people of Mosul and the city of Mosul deserve support’ it is a microcosm of all of Iraq,” he said.
Mr Al Kadhimi’s visit to the UAE comes as he tries to improve ties across the Arab world.
“I believe that the future of the people of this region and the world must be based on the language of co-operation and interdependence,” he said.
“A lack of common investments between the countries of this region has been an impediment to that co-operation, therefore the trilateral co-operation between Iraq, Jordan and Egypt is an important early step in a journey to improving co-operation and resolving the crises of the area.”
“We must work at ending crises rather than trying to taking advantage of them,” he said. Iraq “has exemplary relations with our brothers in the Gulf, particularly Saudi Arabia, in addition to our neighbours in Iran and Turkey”.
Mr Al Kadhimi reflected on his trip to Saudi Arabia. “In the near future we will see a tangible translation of the deep relationship with our brothers there across all sectors particularly economic and investments,” he said.
Speaking on the eve of the Iraq-US strategic dialogue, set to take place on Wednesday, Mr Al Kadhimi said the dialogue "will solidify and organise relations between the two countries".
He will be focused on economic, political and technological co-operation between the two, in addition to the strategic military co-operation.
The prime minister clarified: “Our security and military co-operation is essentially tied to Iraq’s war against ISIS and our request for help from the international coalition lead by the US in 2014.”
He added that the next phase is linked to “training, equipping and providing intelligence support for the Iraqi forces. We believe the Iraqi forces are ready for this transition”.
He said there are currently fewer than 2,500 US soldiers in Iraq and the next round of the strategic dialogue will focus on the procedures and timings for the Iraqi forces to take on all military missions.
Mr Al Kadhimi concluded the interview by speaking about what he considers the greatest challenge facing Iraq.
“The economic challenge was and continues to be the greatest challenge,” he said. “This matter is not only related to oil and the rise and fall of oil prices, rather the over dependence of Iraq’s economy on oil and thus we have issued our white paper to reduce Iraq’s reliance on oil by 20 per cent as a first step and then moving to 50 per cent by improving other sectors like agriculture, industry and trade”.
Iraq passed its first budget in two years last week, with a number of issues rising, including the inequitable distribution of resources among Iraq’s provinces.
Mr Al Kadhimi said: “I have a number of observations about the amendments to the budget, and yet we welcomed Parliament’s passing of our budget because without a budget we would face a dangerous impediment to Iraq’s economic stability and security, especially as it failed to pass for the past two years.”
His emphasis on the economy stems from his belief that “societal realities, human development, and state effectiveness, in addition to Iraq’s external relations are all impacted by our economic outlook”.
He added that in the next five years, Iraq must provide job opportunities for young people and improve its investment climate but that will mean “some difficulties and challenges until we get to our target”.
However, he sounded an upbeat tone: “Iraq is heading for a major and speedy economic revival,” he said, stressing that it that won’t happen without “our friends and neighbours”.
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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Sinopharm vaccine explained
The Sinopharm vaccine was created using techniques that have been around for decades.
“This is an inactivated vaccine. Simply what it means is that the virus is taken, cultured and inactivated," said Dr Nawal Al Kaabi, chair of the UAE's National Covid-19 Clinical Management Committee.
"What is left is a skeleton of the virus so it looks like a virus, but it is not live."
This is then injected into the body.
"The body will recognise it and form antibodies but because it is inactive, we will need more than one dose. The body will not develop immunity with one dose," she said.
"You have to be exposed more than one time to what we call the antigen."
The vaccine should offer protection for at least months, but no one knows how long beyond that.
Dr Al Kaabi said early vaccine volunteers in China were given shots last spring and still have antibodies today.
“Since it is inactivated, it will not last forever," she said.
Results
6.30pm: Maiden Dh165,000 (Dirt) 1,600m
Winner: Celtic Prince, David Liska (jockey), Rashed Bouresly (trainer).
7.05pm: Conditions Dh240,000 (D) 1,600m
Winner: Commanding, Richard Mullen, Satish Seemar.
7.40pm: Handicap Dh190,000 (D) 2,000m
Winner: Grand Argentier, Pat Dobbs, Doug Watson.
8.15pm: Handicap Dh170,000 (D) 2,200m
Winner: Arch Gold, Sam Hitchcott, Doug Watson.
8.50pm: The Entisar Listed Dh265,000 (D) 2,000m
Winner: Military Law, Antonio Fresu, Musabah Al Muhairi.
9.25pm: The Garhoud Sprint Listed Dh265,000 (D) 1,200m
Winner: Ibn Malik, Dane O’Neill, Musabah Al Muhairi.
10pm: Handicap Dh185,000 (D) 1,400m
Winner: Midnight Sands, Pat Dobbs, Doug Watson.
Key figures in the life of the fort
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
Sources: Jayanti Maitra, www.adach.ae
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
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The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
MATCH INFO
What: 2006 World Cup quarter-final
When: July 1
Where: Gelsenkirchen Stadium, Gelsenkirchen, Germany
Result:
England 0 Portugal 0
(Portugal win 3-1 on penalties)
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
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%C2%A0profile
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The biog
Age: 19
Profession: medical student at UAE university
Favourite book: The Ocean at The End of The Lane by Neil Gaiman
Role model: Parents, followed by Fazza (Shiekh Hamdan bin Mohammed)
Favourite poet: Edger Allen Poe
Dark Souls: Remastered
Developer: From Software (remaster by QLOC)
Publisher: Namco Bandai
Price: Dh199
Red Joan
Director: Trevor Nunn
Starring: Judi Dench, Sophie Cookson, Tereza Srbova
Rating: 3/5 stars
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Like a Fading Shadow
Antonio Muñoz Molina
Translated from the Spanish by Camilo A. Ramirez
Tuskar Rock Press (pp. 310)
Abaya trends
The utilitarian robe held dear by Arab women is undergoing a change that reveals it as an elegant and graceful garment available in a range of colours and fabrics, while retaining its traditional appeal.
The specs: 2019 Mini Cooper
Price, base: Dh141,740 (three-door) / Dh165,900 (five-door)
Engine: 1.5-litre four-cylinder (Cooper) / 2.0-litre four-cylinder (Cooper S)
Power: 136hp @ 4,500rpm (Cooper) / 192hp @ 5,000rpm (Cooper S)
Torque: 220Nm @ 1,480rpm (Cooper) / 280Nm @ 1,350rpm (Cooper S)
Transmission: Seven-speed automatic
Fuel consumption, combined: 4.8L to 5.4L / 100km
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
The Voice of Hind Rajab
Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
Greatest Royal Rumble results
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Jeff Hardy retained the United States title against Jinder Mahal
Bludgeon Brothers retain the SmackDown Tag Team titles against the Usos
Seth Rollins retains the Intercontinental title against The Miz, Finn Balor and Samoa Joe
AJ Styles remains WWE World Heavyweight champion after he and Shinsuke Nakamura are both counted out
The Undertaker beats Rusev in a casket match
Brock Lesnar retains the WWE Universal title against Roman Reigns in a steel cage match
Braun Strowman won the 50-man Royal Rumble by eliminating Big Cass last