Iraq’s prime minister-designate Mustafa Al Kadhimi proposes to restrict access to weapons, curb corruption and hold early elections under a plan presented to Parliament, whose approval he needs to get the job.
Mr Al Kadhimi, a former intelligence chief who does not belong to any party, is struggling to gain support among Iraq’s political factions before the May 9 deadline for his nomination to be confirmed by Parliament.
President Barham Salih tipped Mr Al Kadhimi for the post in early April, making him the third nominee in 10 weeks to form a government.
The country is struggling to replace the government of caretaker prime minister Adel Abdul Mahdi, who resigned last November after months of deadly street protests triggered by lack of services and anger over corruption.
Mr Al Kadhimi's plan is to fight corruption by promoting integration among institutions, to “provide them with the powers to implement necessary laws” and to start auditing financial records.
Iraq is ranked near the bottom of Transparency International's Corruption Perceptions Index, at 162nd out of 180 countries.
Political infighting and corruption have crippled the country’s efforts to recover from sanctions under Saddam Hussein and the conflicts that followed the 2003 US invasion that toppled him, including three years of devastating war to defeat ISIS in 2017.
Mr Al Kadhimi's other priorities are allowing weapons only under the government’s control and returning people displaced by Iraq's conflicts to their homes.
He said his plan would end foreign interference and will "not allow any country to violate Iraq's national sovereignty".
The plan also aims to check the power of armed militias operating outside the state.
Parliament is expected to vote on whether to accept Mr Al Kadhimi’s proposed Cabinet and programme before the May 9 deadline.
Under Iraq’s constitution, Mr Al Kadhimi’s Cabinet must be approved by Parliament or Mr Salih will need to appoint a new candidate.
But experts are sceptical that Mr Al Kadhimi will be able to bring about the changes Iraq desperately needs.
“Regardless of who becomes the next prime minister, the state of politics after these six months, with two failed nominees and a third one struggling, shows that the prime minister cannot improve things with the way the political system is,” said Sajid Jayid, an analyst in Baghdad.
Mr Al Kadhimi will have to hold more negotiations with the different faction before his Cabinet can be passed, Mr Jayid said.
“A partial cabinet will be enough, so if 14 names are agreed on [out of 22] then a vote is possible,” he said.
Mr Al Kadhimi’s government “will be faced with the unenviable task of finding ways to run the state with a small fraction of the revenues Iraq typically receives from oil exports due to sharply declining prices,” Abbas Kadhim, director of the Iraq Initiative at the Atlantic Council, said in a report.
Baghdad must secure "as much support as possible from the international community, which is difficult, since the entire world is consumed with battling the pandemic and there is a scarcity of resources worldwide", Mr Kadhim said.
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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.”
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
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A list of the animal rescue organisations in the UAE