Northern Ireland First Minister Foster to step down after party revolt


Soraya Ebrahimi
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Arlene Foster is to step down as Northern Ireland's First Minister at the end of June, bowing to pressure from members of her Democratic Unionist Party unhappy at her leadership over Brexit and social issues.

Her announcement adds to instability in the British province, where angry young pro-British loyalists rioted in recent weeks over the perceived growing power of Irish nationalists and post-Brexit trade barriers with the rest of the United Kingdom.

Foster, who took power in 2016, said in a statement that she would also step down as party leader on May 28.

Her leadership of Northern Ireland was "the privilege of my life," she said.

The announcement comes a day after a majority of DUP ministers signed a letter seeking a confidence vote in Ms Foster, who many blame for mishandling Brexit negotiations.

Ms Foster resisted compromise on the terms of Britain's exit from the European Union when her party wielded huge power in propping up the government of former British Prime Minister Theresa May.

Ms Foster's decision to throw DUP support behind Mrs May's successor Boris Johnson then backfired spectacularly when he broke the party's "blood red line" and agreed to Brussels' demand for trade barriers between Northern Ireland and the rest of the United Kingdom.

The resulting Northern Ireland Protocol leaves Northern Ireland within the EU's trading sphere, avoiding a hard border on the island of Ireland but infuriating pro-British unionists by undermining the region's place in the United Kingdom.

Although Ms Foster has repeatedly called on the EU to scrap the protocol - something it says it will not do - some party figures have demanded an even harder line.

Others have complained that she is too liberal for what is one of the most socially conservative political parties in Europe and that her opposition to gay rights and women's rights is not stringent enough.

Mr Johnson thanked Ms Foster for her dedication to the people of Northern Ireland over many years. "I hope that she stays in public service for years to come," he said in a tweet.

Analysts have pointed to several possible candidates to succeed her including Northern Ireland Agriculture Minister Edwin Poots, the party's leader in the London parliament, Jeffrey Donaldson and fellow MP Gavin Robinson.

But it was unclear how a new leader might shift the political fortunes of the DUP, which has been losing support to both the moderate cross community Alliance Party and the small hardline Traditional Unionist Voice (TUV).

"There isn't a clear ideological direction for the party to go in and that's the problem with this coup," said Jon Tonge, politics professor at the University of Liverpool.

A harder line from a new leader on either Brexit or social issues could destabilise Northern Ireland's power-sharing government that the DUP leads with Irish nationalist rivals Sinn Fein under the terms of the 1998 peace deal that ended three decades of political and sectarian bloodshed between pro-British unionists and Irish nationalists.

"Sinn Fein will work with all parties to progress social reform, political change and economic prosperity - but we will robustly oppose damaging policies or regressive throwback politics of the past," Sinn Fein's Northern Ireland leader Michelle O'Neill said in a statement.

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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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Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
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The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

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