Iran’s internet censorship not in country’s interest: Rouhani



TEHRAN // President Hassan Rouhani re-entered Iran’s feverish debate on internet censorship and gender segregation on Sunday, saying neither policy was in the country’s interest.

Mr Rouhani was elected last year having pledged to be more moderate on social issues after his conservative predecessor Mahmoud Ahmadinejad’s eight-year tenure, but he has encountered resistance.

Iran has a policy of filtering online content, which leaves popular websites such as Facebook, Twitter and YouTube inaccessible without the use of illegal software.

Iranian authorities are also often accused of deliberately slowing down the internet to make many websites harder to access.

The decision of Mr Rouhani’s government to approve faster 3G mobile internet licences for two Iranian companies last month was seen as a first step towards making internet access easier.

But he went further on Sunday and said filtering was counter-productive.

“Some people think we can fix these problems by building walls, but when you create filters, they create proxies,” Mr Rouhani said, referring to proxy servers in other countries used by Iranians to circumvent national regulations.

“This [current policy] does not work. Force does not produce results,” he added, in a speech broadcast live on state television.

The 3G licences decision caused controversy with conservative clerics and officials arguing that video call functions on smartphones could expose youngsters to “immoral content”.

Iran’s ministry of telecommunications, technology and information later stated that video calling would not be available, despite such services – including FaceTime and Skype – being accessible on regular internet connections.

Mr Rouhani also hit out at the recent decision by Tehran’s municipal government to segregate staff by gender, a step implemented by the capital’s mayor and hailed by conservatives.

Referring to those who “constantly say we must separate girls and boys”, he said the Islamic republic’s founder, Ayatollah Ruhollah Khomeini, vehemently opposed universities adopting such a policy after the 1979 revolution.

However, Mr Rouhani defended the veil and use of hijab, which women use to cover their hair and the loose robes they wear to cover their body, saying that it protects women.

Since Mr Rouhani took office last August he has been accused of being too soft on hijab – in October he asked police to be moderate when enforcing the requirement.

Recent years have seen many women wear a thin veil that barely covers the hair and tight clothing or coats reaching mid-thigh instead of the long coat or chador, prompting MPs to write to Mr Rouhani to demand tougher police action.

* Agence France-Press

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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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