A view of the Akhmad Kadyrov Mosque (Heart of Chechnya) and the Grozny City business centre in Grozny, the capital of Chechnya. ASS
A view of the Akhmad Kadyrov Mosque (Heart of Chechnya) and the Grozny City business centre in Grozny, the capital of Chechnya. ASS
A view of the Akhmad Kadyrov Mosque (Heart of Chechnya) and the Grozny City business centre in Grozny, the capital of Chechnya. ASS
A view of the Akhmad Kadyrov Mosque (Heart of Chechnya) and the Grozny City business centre in Grozny, the capital of Chechnya. ASS

Chechnya: 100,000 roubles for newborns named Mohammad on the Prophet’s birthday


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Babies born on Thursday in Chechnya who are named after the Prophet Mohammed or his followers will be eligible for a 100,000 roubles ($1,265) from a local foundation.

The Chechen foundation on Wednesday said it was expanding its annual charity grant for newborn to mark the Prophet’s birthday, which falls on Thursday.

Usually, the Akhmat Kadyrov Foundation, named after the former Chechen leader and father of current Head of the Chechen Republic Ramzan Kadyrov, gives 100,000 roubles to families of babies born on the Prophet Mohammed’s birthday. But this year they are expanding the grant to all families who name a baby born on October 29 after any member of the Prophet Mohammed’s family or close associates.

“The action is held annually in honour of the birthday of the Prophet [Muhammad], but this year it will become more widespread – last year only boys received payments,” Chechnya’s Information Minister Akhmed Dudayev told the Russian state news agency TASS.

Mr Dudayev told TASS that the foundation’s decision to expand the grants was “especially significant for us in the context of recent events.”

In recent days, anger has erupted across many Muslim-majority countries at cartoons published by French magazine Charli Hebdo that many see as offensive to Islam.

The issue has resurfaced after the killing of French teacher Samuel Paty who was beheaded by a teenage extremist after showing his students such cartoons, which are considered blasphemous under Islam, during a class on freedom of expression.

French President Emmanuel Macron has defended the schoolteacher and the cartoons as an expression of free speech.

"We will not give up cartoons, drawings, even if others back down," Mr Macron said during a national tribute to the slain teacher.

Egyptian President Abdel Fattah El Sisi on Wednesday rejected the use of freedom of expression to justify the drawings but called for tolerance and calm.

“To assume a sense of superiority driven from practicing the values of freedom is itself a kind of extremism when encroaching on the rights of others,” he said during a televised ceremony marking the prophet’s birthday.

The Grand Imam of Egypt's Al Azhar university, one of the world's most eminent seats of Muslim learning, also called on the international community to criminalise "anti-Muslim" actions.

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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.”