KABUL // Ashraf Ghani was sworn in as Afghanistan’s new president on Monday, replacing Hamid Karzai in the country’s first democratic transfer of power since the 2001 US-led invasion that toppled the Taliban.
Moments after Mr Ghani took the oath, he swore in his election challenger, Abdullah Abdullah, as chief executive, fulfilling a political pledge he had taken to share power.
The appointment also aimed to diffuse election tensions that had threatened to spark violence between the country’s north and south.
Mr Ghani’s government will sign a long-delayed deal today to allow about 10,000 US troops to stay in Afghanistan into next year, an adviser to the new president said.
The bilateral security agreement became a symbol of frayed US-Afghan ties when Mr Karzai refused to sign the deal last year, infuriating Washington and other international allies.
In his first speech, Mr Ghani called on the Taliban and other militants to join the country’s political process and lay down their weapons. At least 12 civilians and police officers were killed in violence yesterday.
“We are tired of war,” said Mr Ghani in a televised address. “Our message is peace, [but] this doesn’t mean we are weak.”
Mr Ghani, a former World Bank official and Afghan finance minister, wore a dark black turban popular in the country’s south as he swore in his two vice presidents and Mr Abdullah.
Mr Abdullah, a former foreign minister, thanked Mr Karzai for his service and the Afghan people for casting millions of votes, despite Taliban threats of attack designed to thwart the election process.
"We are committed as one in the national unity government," said Mr Abdullah. "Our commitment will be fulfilled together as a unified team to create national unity."
Mr Ghani congratulated Mr Karzai for a peaceful and democratic transition of power, and thanked Mr Abdullah for making a national unity government possible.
Mr Karzai – the only president Afghanistan and the West have known since the 2001 invasion – smiled as he greeted his presidential guards entering the palace.
The former president has said he is glad to be stepping down after more than a decade of what the US ambassador recently said was one of the most difficult jobs in the world.
For Afghans watching the inauguration, that threat of violence and insecurity remained one of their top concerns.
“I hope Ashraf Ghani can bring peace and the rule the law in Afghanistan, as former Afghan president Hamid Karzai could not bring peace,” said Abdul Rahman, a 30-year-old police officer. “Our people have been suffering from the instability and poverty.”
The inauguration caps an election season lasting almost six months, that started with the casting of ballots in April. A run-off election in June between Mr Ghani and Mr Abdullah stretched on for weeks after both sides levelled charges of fraud.
The United Nations helped to carry out what it described as the most thorough recount in its history, a count that reduced Mr Ghani’s vote from 56 per cent to 55 per cent, but still gave him the lead.
But the real power struggle took place in marathon talks between the two sides, often brokered by US secretary of state John Kerry and other US officials. The political deal the sides agreed to created the new position of chief executive, that Mr Abdullah will now fill.
Even as the inauguration unfolded in the heavily guarded presidential palace, two bomb attacks took place on the road connecting the country’s main airport with the palace.
One roadside bomb did not result in any deaths or injuries, but a second attack by a suicide bomber about a kilometre from the airport killed six or seven people, police said.
A bigger attack took place in the eastern province of Paktia. Police captain Mohammed Hekhlas said a car bomb exploded near a government compound during an attack by gunmen, sparking an exchange of fire that killed seven Taliban militants. Another police official said four officers and two civilians were also killed.
The inauguration took place eight days after the political deal signed between Mr Ghani and Mr Abdullah.
The US was represented by John Podesta, counselor to president Barack Obama. Other notable guests included Pakistan president Mamnoon Hussain and Indian vice president Mohammad Hamid Ansari.
* Associated Press
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At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
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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.”