Iraqi prime minister Haider Al Abadi is hoping to secure another term in the upcoming May general elections. Ludovic Marin / Pool / File Photo / Reuters
Iraqi prime minister Haider Al Abadi is hoping to secure another term in the upcoming May general elections. Ludovic Marin / Pool / File Photo / Reuters

Iraq: Abadi’s electoral alliance collapses after just one day



The Iraqi prime minister’s electoral alliance collapsed on Monday just a day after its formation, with some members accusing other groups of sectarianism and corruption.

Haider Al Abadi, a Shiite who led the country in the four-year war against ISIL, is hoping to secure another term as president in the upcoming May general elections after claiming victory over the extremists and thwarting an Iraqi Kurdish bid for independence.

On Sunday, Mr Al Abadi announced the formation of a "cross-sectarian" coalition called Nasr Al Iraq — "The Victory Alliance” — to face off in the elections against the so-called "State of Law" bloc of vice-president Nouri Al Maliki, Mr Al Abadi's predecessor, key rival and fellow Dawa party member.

The Nasr Al Iraq coalition was supposed to include Al Fatih bloc, a group of powerful Shiite militias led by Hadi Al Ameri.

But by Monday, several Al Fatih members had announced their withdrawal from the coalition, including Al Badr Organisation.

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Read more:

Abadi rules out division between Iraqi army and militias 

Iraqi militias form one of the biggest political coalitions for elections

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“Our withdrawal from The Victory Alliance was carried out formally and collectively,” said Mohammed Al Bayati, assistant to the head of Al Badr Organisation.

News of the withdrawals came just hours after it was announced that prominent Shiite leader Ammar Al Hakim would be joining Nasr Al Iraq.

Al Fatih members cited various reasons for their decisions to withdraw, including charges of sectarianism and corruption against coalition members, and opposition to the inclusion of Mr Al Hakim. Other members chose to withdraw for more practical reasons, however, believing they will secure more seats by running on a smaller list.

One Fatih leader, Falah Al Khazali, accused the coalition of including "groups involved in corruption", while another, Haneen Al Qado, simply said "reasons for the withdrawals are due to the contention of parties within The Victory Alliance and differences of opinions”.

There was no official response from Mr Al Abadi's office.

Earlier, one of Iraq’s most senior Shiite clerics, Moqtada Al Sadr, denounced as "abhorrent" Mr Al Abadi’s decision to join forces with Iran-backed militias in the upcoming parliamentary elections.

Mr Al Sadr said he was “surprised” by Mr Al Abadi’s alliance with Al Fatih coalition.

“My condolences [to the people of Iraq] for the abhorrent political alliances [that are of a] sectarian nature,” Mr Al Sadr said.

The Shiite cleric had previously announced his support for Mr Al Abadi and pledged to back his candidacy for a second term.

But Mr Al Sadr described the militias as “shameless” and said the Nasr Al Iraq coalition would “pave the way for the return of corruption and sectarianism”.

The militias fight as part of the Hashed Al Shaabi, a Shiite-dominated alliance that remains deeply divisive and has been accused of a string of abuses.

Known in English as the Popular Mobilisation Units, the Hashed can field between 60,000 and 140,000 fighters.

In November, Mr Al Abadi banned militia leaders from running in the elections, saying there should be a “clear separation between political and armed groups”. Many militia leaders subsequently formally resigned from positions in armed groups.

"It is very simple for militia leaders to sidestep any restrictions on political activity by nominally stepping down from military roles," Michael Knights, Iraq analyst at the Washington Institute for Near East Policy, told The National.

The prime minister's plea for a separation between political and armed groups was backed by Mr Al Sadr last month when he ordered his fighters in the Hashed Al Shaabi to disband and hand over territory held by them to state security forces.

The influential Shiite cleric urged Mr Al Abadi to prevent leaders of the Hashed from running in the upcoming elections.

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Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

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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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Sustainable Development Goals

1. End poverty in all its forms everywhere

2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture

3. Ensure healthy lives and promote well-being for all at all ages

4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

5. Achieve gender equality and empower all women and girls

6. Ensure availability and sustainable management of water and sanitation for all

7. Ensure access to affordable, reliable, sustainable and modern energy for all

8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

9. Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation

10. Reduce inequality  within and among countries

11. Make cities and human settlements inclusive, safe, resilient and sustainable

12. Ensure sustainable consumption and production patterns

13. Take urgent action to combat climate change and its effects

14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development

15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

17. Strengthen the means of implementation and revitalise the global partnership for sustainable development

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  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
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