Nicola Beer called for an investigation into alleged links between Islamic Relief Worldwide and the Muslim Brotherhood. Getty
Nicola Beer called for an investigation into alleged links between Islamic Relief Worldwide and the Muslim Brotherhood. Getty
Nicola Beer called for an investigation into alleged links between Islamic Relief Worldwide and the Muslim Brotherhood. Getty
Nicola Beer called for an investigation into alleged links between Islamic Relief Worldwide and the Muslim Brotherhood. Getty

Leading European MP calls for halt to Islamic Relief funding over alleged Muslim Brotherhood links


Nicky Harley
  • English
  • Arabic

A vice president of the European Parliament has urged a suspension of funding to Islamic Relief while its alleged links to the Muslim Brotherhood are investigated.

Nicola Beer wrote to the European Commission and said it was unacceptable for Islamic Relief to receive funding if it has connections to the Muslim Brotherhood.

"European funds must not fall into the hands of organisations that are responsible for anti-Semitism or other hatred," she said.

The German lawyer, who is a member of the Free Democratic Party and has served as a Member of the European Parliament since 2019, asked for an investigation into the co-operation between the Commission’s Directorate General for European Civil Protection and Humanitarian Aid Operations (DG Echo) and NGOs with links to the Muslim Brotherhood and Hamas.

"The DG Echo includes in its list of non-governmental organisations certified as EU humanitarian partners for the period 2021-2027 Islamic Relief Germany and Islamic Relief Sweden," she wrote.

"In 2017 and 2019, the German Federal Government stated that there were significant personnel connections between Islamic Relief Germany and the Muslim Brotherhood.

"Additionally, Islamic Relief Germany and Islamic Relief Sweden are co-operation partners of Islamic Relief Worldwide, which was banned by the Israeli authorities in 2014 for being part of the Hamas funding apparatus.

"Again, there are close personnel connections between Islamic Relief Germany and Islamic Relief Worldwide. Board members of Islamic Relief Germany, for example, also occupy executive positions at Islamic Relief Worldwide."

She asked the EU Commission to reveal if it was aware of any connections between the groups and to clarify its mechanisms for reviewing organisations with links to terrorists or anti-Semitics.

"Can the Commission guarantee that it will immediately end funding for and co-operation with non-governmental organisations with links to terrorist or anti-Semitic organisations?" she asked.

Her questions were submitted in April and the Commission has six weeks to respond.
Ties between the British-based Islamic Relief charity and the Muslim Brotherhood have recently been under scrutiny.

The Netherlands and Germany banned Islamic Relief Worldwide from receiving funding and it is now being forced to provide monthly compliance reports after an urgent review by USAid, America's national aid agency, after its links to the Muslim Brotherhood were exposed.

German aid alliance group Aktion Deutschland Hilft suspended Islamic Relief Germany’s membership until December 2021, with the charity’s funding frozen.

Sigrid Kaag, the Netherlands' Minister for Foreign Trade and Development, banned any release of government funds to the organisation in January, after an investigation by the UK-based Charity Commission into anti-Semitism at Islamic Relief Worldwide.

The aid watchdog began its investigation last July, when Islamic Relief Worldwide trustee Heshmat Khalifa resigned over more than a dozen offensive Facebook posts from 2014 and 2015 relating to anti-Semitism and support of militant group Hamas.

Another IRW trustee, Almoutaz Tayara, admitted he had posted offensive material praising Hamas and an anti-Semitic cartoon, and fundraising co-ordinator Abdul Mannan Bhatti regularly posted quotes from Sayyid Qutb, a founder of the Muslim Brotherhood.

The Charity Commission said in January it was satisfied with the measures taken by the charity to address the publication of hate posts.

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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.”