Turkey's prime minister, Recep Tayyip Erdogan, accompanied by his wife Emine Erdogan, greets his supporters at the AK Party headquarters in Ankara. Umit Bektas / Reuters
Turkey's prime minister, Recep Tayyip Erdogan, accompanied by his wife Emine Erdogan, greets his supporters at the AK Party headquarters in Ankara. Umit Bektas / Reuters

Election victory for Erdogan boosts Turkey's standing in region



ISTANBUL // Turkey's elections. which balanced a stable government with a requirement for politicians to forge a broad agreement for a new constitution, have strengthened the country's role as a political model with a functioning Muslim democracy, analysts say.

The religiously conservative Justice and Development Party (AKP) of Recep Tayyip Erdogan, the prime minister, scored a record 49.9 per cent of the vote in Sunday's parliamentary elections to win its third straight term in power. The AKP raked in almost twice as many votes as the second party, the secularist Republican People's Party (CHP) which came in at 25.9 per cent.

Video: Erdogan wins parliamentary elections

Last Updated: June 14, 2011 UAE

Despite the resounding AKP triumph, voters rejected Mr Erdogan's plea to give the party the two-thirds majority in parliament needed to exclusively alter the constitution. With 326 seats in the 550 seat assembly in Ankara, the AKP will have to seek agreement with other parties if it wants to carry out its promise of a new constitution, replacing one written under orders by the military in 1982 after a coup d'etat.

Mr Erdogan left no doubt that he thinks the election outcome has strengthened Turkey's role in the region.

"Believe me, tonight Sarajevo has won as much as Istanbul has," Mr Erdogan said in his victory speech to thousands of cheering supporters who had gathered in front of the AKP headquarters in Ankara late Sunday.

"Beirut has won just as much as Izmir has, the West Bank and Gaza have won just as much as Diyarbakir has. Tonight, the Middle East, the Balkans and the Caucasus have won just as much as Turkey has.

"We will become much more active in regional and global affairs," Mr Erdogan said.

Turkey, a Western-style democracy with a Muslim population, has been described as a model state for countries caught up in the uprisings of the Arab Spring. The outcome of the election has boosted that function, political analyst Celalettin Yavuz said.

Mr Yavuz, the deputy director of the Centre for International Relations and Strategic Analysis, or Turksam, a think tank in Ankara, said in an interview yesterday: "After the election, Erdogan is more powerful [in the region] than he was before."

People in the Middle East saw Mr Erdogan "as a leader of a Muslim, but democratic state," something demonstrators around the region want for their own countries, Mr Yavuz said.

Veysel Ayhan, an analyst at the Centre for Middle Eastern Strategic Studies, or Orsam, another think tank in Ankara, said the Turkish election result carried an important message for both the people and the governments in the region: "You can be successful if you are close to the people," Mr Ayhan said.

He also pointed to protests outside the Turkish embassy in Damascus late Sunday, which showed that authoritarian regimes in the region were not happy with the effectiveness of the democratic process in Turkey, he said. About 2,000 supporters of the Syrian regime gathered in front of the Turkish embassy in the capital and tried to take down the Turkish flag, news reports said.

In Ankara, the issue of the new constitution has dominated from the moment Mr Erdogan's victory became clear. The prime minister, who has been accused of autocratic tendencies, said he would work with the opposition and pledged to protect the rights and the lifestyle of all Turks, not just of the predominantly conservative circles that voted for him.

"The nation has given us the message that the new constitution should be created through agreement and negotiation," Mr Erdogan said in his victory speech. "We will go to the opposition. We will look for consultation and agreement with the media and academics. We will not close our doors."

He also stressed that the AKP, supported by many observant Muslims but despised by many Turkish secularists, would form a government that was respectful to everyone in the country.

"No one should have doubts that [protecting] the lifestyle, faith and values of both those who voted and did not vote for us will be a matter of honour for me," Mr Erdogan said.

Leaders of Turkey's business community called on politicians to resolve their differences and get to work on the new constitution. Parties should act quickly, Haci Boydak, a leading industrialist, told Zaman, a newspaper close to the government.

Political observers said the election had given Mr Erdogan, whose government spent years trying to strip the once-powerful military of its political influence, a good chance to seek a compromise with the opposition.

Four years ago, the AKP victory in the elections came after the military threatened to stage a coup against Mr Erdogan, but today, "there are no more excuses" for the ruling party, Rusen Cakir, a television and newspaper commentator, told the NTV news channel.

Others agreed. "We have a level playing field now," columnist Mumtaz'er Turkone wrote in yesterday's Zaman. "A new constitution is possible at last."

Citizenship-by-investment programmes

United Kingdom

The UK offers three programmes for residency. The UK Overseas Business Representative Visa lets you open an overseas branch office of your existing company in the country at no extra investment. For the UK Tier 1 Innovator Visa, you are required to invest £50,000 (Dh238,000) into a business. You can also get a UK Tier 1 Investor Visa if you invest £2 million, £5m or £10m (the higher the investment, the sooner you obtain your permanent residency).

All UK residency visas get approved in 90 to 120 days and are valid for 3 years. After 3 years, the applicant can apply for extension of another 2 years. Once they have lived in the UK for a minimum of 6 months every year, they are eligible to apply for permanent residency (called Indefinite Leave to Remain). After one year of ILR, the applicant can apply for UK passport.

The Caribbean

Depending on the country, the investment amount starts from $100,000 (Dh367,250) and can go up to $400,000 in real estate. From the date of purchase, it will take between four to five months to receive a passport. 

Portugal

The investment amount ranges from €350,000 to €500,000 (Dh1.5m to Dh2.16m) in real estate. From the date of purchase, it will take a maximum of six months to receive a Golden Visa. Applicants can apply for permanent residency after five years and Portuguese citizenship after six years.

“Among European countries with residency programmes, Portugal has been the most popular because it offers the most cost-effective programme to eventually acquire citizenship of the European Union without ever residing in Portugal,” states Veronica Cotdemiey of Citizenship Invest.

Greece

The real estate investment threshold to acquire residency for Greece is €250,000, making it the cheapest real estate residency visa scheme in Europe. You can apply for residency in four months and citizenship after seven years.

Spain

The real estate investment threshold to acquire residency for Spain is €500,000. You can apply for permanent residency after five years and citizenship after 10 years. It is not necessary to live in Spain to retain and renew the residency visa permit.

Cyprus

Cyprus offers the quickest route to citizenship of a European country in only six months. An investment of €2m in real estate is required, making it the highest priced programme in Europe.

Malta

The Malta citizenship by investment programme is lengthy and investors are required to contribute sums as donations to the Maltese government. The applicant must either contribute at least €650,000 to the National Development & Social Fund. Spouses and children are required to contribute €25,000; unmarried children between 18 and 25 and dependent parents must contribute €50,000 each.

The second step is to make an investment in property of at least €350,000 or enter a property rental contract for at least €16,000 per annum for five years. The third step is to invest at least €150,000 in bonds or shares approved by the Maltese government to be kept for at least five years.

Candidates must commit to a minimum physical presence in Malta before citizenship is granted. While you get residency in two months, you can apply for citizenship after a year.

Egypt 

A one-year residency permit can be bought if you purchase property in Egypt worth $100,000. A three-year residency is available for those who invest $200,000 in property, and five years for those who purchase property worth $400,000.

Source: Citizenship Invest and Aqua Properties

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Mubalada World Tennis Championship 2018 schedule

Thursday December 27

Men's quarter-finals

Kevin Anderson v Hyeon Chung 4pm

Dominic Thiem v Karen Khachanov 6pm

Women's exhibition

Serena Williams v Venus Williams 8pm

Friday December 28

5th place play-off 3pm

Men's semi-finals

Rafael Nadal v Anderson/Chung 5pm

Novak Djokovic v Thiem/Khachanov 7pm

Saturday December 29

3rd place play-off 5pm

Men's final 7pm

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home. 

Game Changer

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Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram

Rating: 2/5

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Send “thenational” to the following numbers or call the hotline on: 0502955999
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COMPANY PROFILE
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Started: August 2020
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Sectors: Internet, e-commerce
Investments: Grants/private funding
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UPI facts

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If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.

When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.

How to get there: Emirates currently flies from Dubai to Orlando five times a week.
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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.”