The Pakistani president Pervez Musharraf has cancelled his official visit to the Beijing Olympics opening ceremony.
The Pakistani president Pervez Musharraf has cancelled his official visit to the Beijing Olympics opening ceremony.
The Pakistani president Pervez Musharraf has cancelled his official visit to the Beijing Olympics opening ceremony.
The Pakistani president Pervez Musharraf has cancelled his official visit to the Beijing Olympics opening ceremony.

Musharraf cancels visit to Olympics opener


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ISLAMABAD // The Pakistani president Pervez Musharraf has cancelled his official visit to the Beijing Olympics opening ceremony amid reports that the coalition government is discussing his impeachment. The announcement came as the fragile coalition, which came to power in March after defeating Mr Musharraf's allies in elections, prepared to hold a second day of talks focused on how to tackle the US-backed president.

"The foreign office has got information about cancellation of the president's visit," said the Pakistani Foreign Ministry spokesman Mohammad Sadiq. "The visit is cancelled. I cannot tell (you) immediately the reason for it," he said. But media reports said that coalition leaders Asif Ali Zardari, widower of the former premier Benazir Bhutto, and the ex-prime minister Nawaz Sharif had discussed the possible impeachment of Mr Musharraf yesterday.

"The cancellation of the China visit by President Musharraf is an important development," said a senior government official who declined to be named. "Given our special relationship and friendly ties with China, it is unimaginable that a Pakistani leader would cancel his visit ? and that, too, for a very important occasion for our ally China," the official added. Mr Zardari had also cancelled a planned visit to China, one of Pakistan's main military backers, for the opening of the Olympic Games, said Farhatullah Babar, a spokesman for the Pakistan People's Party (PPP).

Mr Sharif and Mr Zardari were set to hold further meetings today, but Mr Babar did not say if the coalition leaders planned to finalise a decision to impeach Mr Musharraf as reported in local newspapers. "It is up to the leaders to decide, and they could choose to speak to media or issue a joint statement after the meeting," he said. Asked about Mr Musharraf's decision to cancel his China trip, Mr Babar said, "I am not concerned whether he (Musharraf) is going or not, it is up to him."

Mr Sharif's Pakistan Muslim League-N, or PML-N, party however said that a decision was likely. "We have a commitment to the nation, which demands that it does not want to see Pervez Musharraf occupying the presidency," Javed Hashmi, the PML-N's senior vice president, said ahead of a party meeting. "The country will be saved from the present crisis and by his (Musharraf's) quitting there will be political stability."

The two parties have been split by the twin issues of what to do about Mr Musharraf and how to carry out their pledge to reinstate senior judges sacked by Mr Musharraf under a state of emergency last November. The rift has caused a sense of paralysis in the government, which is under huge pressure from the US over its efforts to negotiate with Taliban and al Qa'eda militants based near the Afghan border.

*AFP

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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.”

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