Bahrain under the spotlight as protest inspector returns


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MANAMA // The academic who investigated abuses during Bahrain's crackdown on pro-democracy protests last year returned yesterday to assess how far the government has followed through on the reforms he recommended.

Cherif Bassiouni, an Egyptian-American professor at DePaul University in Chicago, met members of the royal family as he prepared to begin his new mission at King Hamad bin Isa Al Khalifa’s invitation. The mission is expected to last until March.

Riot police still clash daily with young, mainly Shiite, protesters, who complain that they continue to be marginalised by Bahrain’s Sunni rulers. Clashes have become more violent in the run-up to the February 14 anniversary of the start of the protests.

In November, Mr Bassiouni detailed incidents of torture including sexual abuse and electric shocks that occurred during last year’s crackdown.

This time, Mr Bassiouni and his team will assess whether Bahrain has reformed its policing, reinstated sacked employees, and investigated torture claims and military trials in line with the recommendations by his independent commission.

Mr Bassiouni told DePaul students before he left that Bahrain was not moving fast enough to calm street protests.

“I think the public is going to come at the end and say ‘you know what, you’re holding all of these investigations behind closed doors – this is a whitewash’ and I think they would be perfectly justified in saying so,” he said.

Keen to demonstrate that it has acted on the report, the Bahrain government has chronicled the steps it has implemented on a dedicated website.

He suggested to his DePaul students that disputes within the royal family were holding up political and economic reforms.

“You have to choose between maintaining the unity of the family or the regime, or the unity of the country,” he said.

The Bici [Bahrain Independent Commission of Inquiry] report stated that 35 people had died in the protests up to June, when martial law was lifted, but activists said the continuing violence has taken the total to more than 60, including 14 since Mr Bassiouni was last in the country in November. The government disputes the causes of death.

Opposition parties said they would meet Mr Bassiouni today.

One western diplomat said the government needed time to implement reforms.

“There is a will at the top but the challenge is to ensure that the bureaucracy is as serious and to follow up with mechanisms,” the diplomat said.

* With additional reporting by Associated Press

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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.”

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