Former Iranian president Akbar Hashemi Rafsanjani, who has also been banned from contesting the Iranian elections.
Former Iranian president Akbar Hashemi Rafsanjani, who has also been banned from contesting the Iranian elections.

Ahmadinejad vows to fight poll ban on his chosen heir



Mahmoud Ahmadinejad vowed yesterday to challenge a ban on his chosen successor from running in next month's Iranian presidential elections.

Esfandiar Rahim Mashaei is "a victim of injustice" and his disqualification is an act of "oppression", the outgoing president said.

Mr Mashaei, Mr Ahmadinejad's former chief of staff, was disqualified by Iran's electoral watchdog on Tuesday night. Even more significantly, it barred the moderate former president Akbar Hashemi Rafsanjani, a standard bearer for the opposition, from contesting the June 14 vote.

This leaves a narrow field dominated by hardline acolytes of the supreme leader, Ayatollah Ali Khamenei. The bans will deepen voter apathy, undermine the legitimacy of the election and make Iran's power base narrower than ever, leaving reformists and centrists feeling marginalised, alienated and angry, analysts said.

To avert possible protests, riot police on motorcycles patrolled Tehran when the final list of eight candidates, cut from nearly 700 who registered, was announced.

Internet speeds were also slowed, apparently to prevent online organisation of demonstrations.

Mr Mashaie's disqualification was expected. A protégé of the unruly Mr Ahmadinejad, he is despised by Iran's old guard, who say he heads a "deviant" current" bent on undermining clerical authority.

Mr Khamenei is also determined that Mr Ahmadinejad - whom he once championed - retain no behind-the-scenes power when his eight turbulent years in office end.

Mr Ahmadinejad said he would raise the disqualification with Mr Khamenei and expressed hope the "problem will be solved". Mr Mashaei's campaign office called on his followers to show restraint and calm.

The president has warned that he has incriminating intelligence files on top regime officials and could publicise them if his ambitions are thwarted. The regime appears prepared to call his bluff and to clamp down hard if he stirs trouble, calculating that he no longer enjoys popular support or has any clout with the Revolutionary Guards, who have vowed to crush any "sedition".

More surprising was Mr Rafsanjani's disqualification by the Guardian Council, an unelected panel of 12 religious figures and jurists controlled by the supreme leader. The two-time former president has stellar revolutionary credentials as a founding father of the Islamic Republic. But his camp said yesterday he would not challenge his disqualification.

Hardliners maintained that, at 78, Mr Rafsanjani was too old to be president, although the head of the Guardian Council that disqualified him, Ayatollah Ahmad Jannati, is 87.

"It seems Khamenei decided to sacrifice the legitimacy of the elections rather than face a possible Rafsanjani victory," said Scott Lucas, an Iran expert at Birmingham University in England. "Elements in the regime decided to slap down Rafsanjani now rather than during the campaign."

Alireza Nader, an analyst at the Rand Corporation, went further. "Khamenei may still overturn the decision, but Rafsanjani's disqualification shows that Khamenei is determined to wield all power," he said. "This appears to be a presidential selection rather than an election."

Others saw a chink of light. Among the eight allowed to run is a Rafsanjani ally, Hassan Rouhani, one of Iran's former chief nuclear negotiators, and Mohammad Reza Aref, a reformist former vice president.

The presidential election could yet be energised if Mr Rafsanjani, a wily survivor, endorses either of these low-key candidates.

There is a precedent. Four years ago, a seemingly lacklustre reformist candidate, Mir Hossein Mousavi, who had steered clear of Iran's political front lines for two decades, emerged as a major threat to the regime when myriad opposition forces vested their hopes in him.

He has been under house arrest for more than two years.

* Additional reporting by Reuters

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Pearls on a Branch: Oral Tales
​​​​​​​Najlaa Khoury, Archipelago Books

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.”