Sheikh Ali Salman, head of Al Wefaq, Bahrain’s main opposition party, delivers a speech during an anti-government rally in Budaiya, a suburb of Manama on Saturday.
Sheikh Ali Salman, head of Al Wefaq, Bahrain’s main opposition party, delivers a speech during an anti-government rally in Budaiya, a suburb of Manama on Saturday.

Bahrain opposition parties launch week-long rally for political reform



MANAMA // Bahraini opposition parties launched a week-long "sit-in" for political reforms yesterday and vowed to take their campaign to the centre of last year's protest in Manama.

"This is a dress rehearsal for the return. We will return! We will return! Soon our sit-in will not be here but at the Pearl Roundabout," said poet Ayat Al Qormozi, who became a face of the Arab Spring movement after she was jailed for reading a poem criticising the king at Pearl Roundabout last year.

She was addressing a crowd of more than 10,000 people at the rally outside Manama, where anti-government protests last year were crushed by Bahraini forces and troops from Saudi Arabia.

Pearl Roundabout, a large traffic junction in Manama where the protesters camped out and rallied for a month, has since been closed by security forces who monitor the area closely.

Bahrain, a key US and Saudi ally, has been in turmoil since the uprising last year.

The opposition are trying to sustain pressure on the government, dominated by the Sunni Muslim Al Khalifa family, ahead of the February 14 anniversary of the uprising. The reforms they want include an elected government and reduced powers for the Al Khalifa family.

Sheikh Ali Salman, leader of the largest opposition party Wefaq, called on activists to keep the protests peaceful but warned that intelligence agencies and pro-government militias would act as agent provocateurs in coming weeks.

He called on activists to use only Bahraini flags during the week of protest and avoid using party or sectarian symbols.

Opposition groups draw wide support from Bahrain's majority Shiite population, which accuses the ruling elite of political and economic marginalisation. The government says Shiites have a sectarian agenda coordinated with Iran - which they deny.

Mr Salman said the protest movement would continue after February 14 and the country would not return to normal until the ruling elite ends its monopoly on power and 14 protest leaders convicted for leading demonstrations are released.

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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
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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.”