Calls for investigations into allegations Islamic Relief Worldwide has links to the Muslim Brotherhood. Getty
Calls for investigations into allegations Islamic Relief Worldwide has links to the Muslim Brotherhood. Getty
Calls for investigations into allegations Islamic Relief Worldwide has links to the Muslim Brotherhood. Getty
Calls for investigations into allegations Islamic Relief Worldwide has links to the Muslim Brotherhood. Getty

German MP calls for inquiry into Islamic Relief to nip ‘seditious sentiments in the bud’


Nicky Harley
  • English
  • Arabic

A German politician is calling for an investigation to identify the structures and networks surrounding international aid group Islamic Relief to "nip seditious sentiments in the bud".

The German Interior Ministry stopped funding Islamic Relief Worldwide (IRW) and Islamic Relief Deutschland (IRD), citing “significant connections” to the Muslim Brotherhood.

The vice chairman of Germany's Free Democratic Party in the Bundestag, Stephan Thomae, who sits on the security committee, told The National the Muslim Brotherhood is a danger and that Islamic Relief has a long way to go.

His warnings come after months of scandals faced by IRW, with the resignations of three senior figures from its UK headquarters over anti-Semitism and posts supporting Hamas and the Muslim Brotherhood.

"Despite the steps already taken by Islamic Relief to counter allegations of ties to the Muslim Brotherhood – the Federal Government still assumes the existence of significant personal links to the Muslim Brotherhood or allied organisations,” he said.

“This shows that Islamic Relief's work is only just beginning.

“The Muslim Brotherhood is pursuing anti-constitutional goals in a planned and determined fashion. What makes the Muslim Brotherhood so dangerous is that it is not a centralised organisation; it is a wide international network of individuals and associations that are formally independent and deny any connections to the Brotherhood.

“The threat posed by extremist and subversive tendencies does not only begin to exist once they have achieved a certain size or can be clearly linked to concrete terrorist attacks, our liberal democracies must aim to recognise such tendencies early on, identify structures and networks, dismantle them and nip seditious tendencies in the bud.”

The German Foreign Office cut IRD’s funding and said it will receive a final payment in January "to be able to guarantee the delivery of urgently needed medicines" to hospitals in Syria.

Mr Thomae said the government needs to be vigilant.

“Once a breeding ground for extremism has become established, it is only a matter of time until radicalised lone wolves actually carry out attacks, in which they feel underpinned by support from a broad body of sympathisers,” he said.

The managing director of IRD, Tarek Abdelalem, told German news site Handelsblatt that the charity is doing everything it can to reassure the German government.

"We are doing everything within our means to create clarity and hope for the support of the federal government,” he said.

“We hope that in the future we will be able to carry out projects such as the health project in north-west Syria with the support of the Federal Foreign Office.”

In 2014, IRW was banned by the UAE because of its perceived links to the Muslim Brotherhood.

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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.”