BAGHDAD // Iraqi forces killed at least two protesters while defending Baghdad’s Green Zone, officials said on Saturday, as the troubled country’s leaders warned against further escalation.
The two supporters of Muqtada Al Sadr were the first casualties of the months-old protest movement started by the influential cleric to push for political change.
They were buried on Saturday in the holy city of Najaf, which is home to the world’s largest cemetery where millions of people from Iraq’s Shiite majority are buried.
“The victims were buried ... in Wadi Al Salam cemetery,” said Sheikh Imad Al Kaabi, an official in the Sadr movement.
During the funeral, a relative of one of the deceased accused the state of using excessive force, saying the protesters faced “live and rubber bullets and tear gas”.
Friday saw the worst eruption of violence since Mr Al Sadr, the scion of an influential clerical family from Najaf, ordered his followers to take to the streets to demand reforms.
His supporters confronted the security forces and broke into the Green Zone, a sprawling fortified district in central Baghdad that hosts most of the country’s top institutions.
A small group managed to storm prime minister Haider Al Abadi’s office. They quickly pulled out.
The protesters faced a barrage of tear gas and generally stiffer resistance than three weeks earlier, when they broke into the Green Zone for the first time and stormed parliament.
Security and medical officials also said at least 57 people were wounded in Friday’s unrest. Security forces also used water cannon and sound bombs against the protesters, some of whom threw rocks and other debris.
Security forces also fired live rounds during the demonstration, mostly into the air, but officials said at least two protesters had died of bullet wounds.
Mr Al Abadi reacted to the latest breach by saying that “storming state institutions ... cannot be accepted”, but added that he supported the “demands of the peaceful protesters”.
Mr Al Sadr vowed on Friday that peaceful protests would continue, warning that “the revolution will take another form” if there were attempts to block them.
Mr Al Abadi has made several attempts to push through reforms aimed at curbing corruption and spending since he took the country’s top job in 2014.
His latest plan was to replace the current government of party-affiliated ministers with a cabinet of technocrats.
But he has faced resistance from key players, including within his own party, who are reluctant to give up a system of patronage that is the very source of their power.
Mr Al Sadr ostensibly supports Mr Al Abadi’s reform but every security breach in the Green Zone has made the premier look weaker and infuriated rival Shiite groups.
Parliament has failed to reconvene since protesters stormed it late last month. A session had been slated for this coming Thursday but Friday’s fresh breach raises questions over where to hold it.
That leaves Mr Al Abadi with few options, with tensions growing between Shiite armed groups even as Iraqi forces prepare for their most daunting military operations so far against ISIL.
“Restoring calm is key for Iraq to be able to move forward in finding a political solution based on inclusive consultations,” said Jan Kubis, the UN’s special envoy to Iraq.
But Kimberley Kagan, who heads the Institute for the Study of War, argued that the political crisis had deepened too much for all sides to agree on a face-saving solution.
“This conflict will protract and there will be winners and losers,” she said.
A two-hour curfew was slapped on Baghdad on Friday as riots wound up near the Green Zone, amid reports that Mr Al Sadr’s armed organisation and militia groups were on the brink of a dangerous confrontation.
* Agence France-Presse
The Book of Collateral Damage
Sinan Antoon
(Yale University Press)
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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