AMMAN // Jordan’s Muslim Brotherhood has formally split after 70 years — a break-up blamed on long-running ideological disputes, but also on a government attempt to further weaken what was once the country’s main opposition group.
The split deals a new blow to the region-wide Brotherhood movement, which has been outlawed as a terror group by close Jordan allies Egypt, Saudi Arabia and the UAE.
In Jordan, some warned that the government’s apparent divide-and-control policy could backfire by pushing more Brotherhood supporters into the ranks of extremists like the ISIL group, seen as the main threat to the country’s stability.
The new, officially licensed Brotherhood offshoot defines itself as a strictly Jordanian group, saying it cut ties with the regional movement to avoid being branded as militant.
“We were concerned that we would be considered as a terrorist organisation if we continued to be a branch of an organisation branded as a terrorist group,” the group’s leader, Abdel Majid Thnaibat, said.
The larger Brotherhood faction, still loyal to the regional movement, alleged the government engineered the division to weaken the group.
Jordan government claimed that to have nothing to do with the dispute within the movement, according to the Jordan Times.
The split was formalised earlier this month when the government licensed Mr Thnaibat’s breakaway faction, and the core movement promptly expelled the defectors.
The status of the second faction now remains unclear.
A government official said that while Mr Thnaibat’s group registered with the authorities, the other faction “did not correct” its status, suggesting it is legally vulnerable.
It’s not clear if Jordan’s authorities eventually will outlaw the original movement, which is deeply rooted in Jordanian society through its social outreach and welfare system. There have been some signs of a crackdown in recent months, including the arrests of about two dozen activists and the sentencing of the group’s No. 2 — Zaki Bani Ersheid — to 18 month in prison for criticising the UAE.
The problems have put the Brotherhood in Jordan at its lowest point in years. It has no representation in parliament because of self-imposed election boycotts and is losing some of its young to extremist groups.
The division was preceded by long-running ideological disagreements between “doves” and “hawks,” exacerbated by 2007 Gaza takeover of the militant Hamas, the Palestinian branch of the Brotherhood.
The doves emphasise their Jordanian identity, want to keep Hamas at arm’s length, appear more willing to play by the restrictive rules set by the monarchy and want to focus on “dawa,” or preaching. The hawks criticise government policies more openly, particularly Jordan’s peace treaty with Israel, embrace Hamas and see the Brotherhood as a transnational movement.
Tribal identities also appear to play a role, as Mr Thnaibat and some of his key supporters are members of Jordan’s Bedouin tribes, while some of the leading hawks are descendants of Palestinian refugees.
For years, the Brotherhood was Jordan’s largest and most cohesive opposition group, seeking political reform, but stopping short of seeking the removal of the king. With the hawks in charge, friction between the Brotherhood and the government has grown in recent years.
At the same time, the Jordanian Brotherhood has been weakened by regional developments in recent years, including the growing ideological competition from extremists following the outbreak of the Arab Spring uprising in 2011.
Some warn the government crackdown could radicalise Brotherhood supporters and help swell the ranks of ISIL. Jordan has taken on a high-profile role in a US-led military coalition that carries out air strikes against the militants, after they burned a captive Jordanian pilot to death in a cage. Jordan’s King Abdullah II has framed the battle as an ideological fight to the finish.
Others say the Brotherhood is responsible for losing supporters.
“The Muslim Brotherhood failed to deal with the young generation and to lead them in the right direction,” said Mahmoud Al Kharabseh, a pro-government legislator.
Analyst Labib Kamhawi said the Brotherhood’s troubles offered an opportunity for the government to encourage the split.
“Jordan is simply trying to trim the Brotherhood in power and size, to be able to manage it easily,” he said.
It’s not clear how the rival factions will now deal with each other, and whether court battles over the Brotherhood brand and the movement’s properties, such as hospitals and real estate, are looming.
Mr Adaileh alleged that trying to entangle the Brotherhood in legal battles is part of the government’s alleged strategy of weakening the movement.
Mr Thnaibat left open the possibility that his group will participate in future elections after the Brotherhood boycotted the last two rounds over claims the system favoured tribal candidates. He also said his group would try to persuade the rank and file to join them.
“We are going to contact our Brothers in the provinces to explain to them why a Brother shouldn’t stay in an illegal organisation,” he said.
* Associated Press
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Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
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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The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
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Tributes from the UAE's personal finance community
• Sebastien Aguilar, who heads SimplyFI.org, a non-profit community where people learn to invest Bogleheads’ style
“It is thanks to Jack Bogle’s work that this community exists and thanks to his work that many investors now get the full benefits of long term, buy and hold stock market investing.
Compared to the industry, investing using the common sense approach of a Boglehead saves a lot in costs and guarantees higher returns than the average actively managed fund over the long term.
From a personal perspective, learning how to invest using Bogle’s approach was a turning point in my life. I quickly realised there was no point chasing returns and paying expensive advisers or platforms. Once money is taken care off, you can work on what truly matters, such as family, relationships or other projects. I owe Jack Bogle for that.”
• Sam Instone, director of financial advisory firm AES International
"Thought to have saved investors over a trillion dollars, Jack Bogle’s ideas truly changed the way the world invests. Shaped by his own personal experiences, his philosophy and basic rules for investors challenged the status quo of a self-interested global industry and eventually prevailed. Loathed by many big companies and commission-driven salespeople, he has transformed the way well-informed investors and professional advisers make decisions."
• Demos Kyprianou, a board member of SimplyFI.org
"Jack Bogle for me was a rebel, a revolutionary who changed the industry and gave the little guy like me, a chance. He was also a mentor who inspired me to take the leap and take control of my own finances."
• Steve Cronin, founder of DeadSimpleSaving.com
"Obsessed with reducing fees, Jack Bogle structured Vanguard to be owned by its clients – that way the priority would be fee minimisation for clients rather than profit maximisation for the company.
His real gift to us has been the ability to invest in the stock market (buy and hold for the long term) rather than be forced to speculate (try to make profits in the shorter term) or even worse have others speculate on our behalf.
Bogle has given countless investors the ability to get on with their life while growing their wealth in the background as fast as possible. The Financial Independence movement would barely exist without this."
• Zach Holz, who blogs about financial independence at The Happiest Teacher
"Jack Bogle was one of the greatest forces for wealth democratisation the world has ever seen. He allowed people a way to be free from the parasitical "financial advisers" whose only real concern are the fat fees they get from selling you over-complicated "products" that have caused millions of people all around the world real harm.”
• Tuan Phan, a board member of SimplyFI.org
"In an industry that’s synonymous with greed, Jack Bogle was a lone wolf, swimming against the tide. When others were incentivised to enrich themselves, he stood by the ‘fiduciary’ standard – something that is badly needed in the financial industry of the UAE."
THE%20SPECS
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Brief scoreline:
Liverpool 2
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Chelsea 0
Man of the Match: Mohamed Salah (Liverpool)
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