A poster of Iraq's Prime Minister designate Mohammed Allawi with Arabic that reads, "The party candidate is rejected" is seen during ongoing anti-government protests in Tahrir Square, Baghdad, Iraq, Saturday, Feb. 29, 2020. AP
A poster of Iraq's Prime Minister designate Mohammed Allawi with Arabic that reads, "The party candidate is rejected" is seen during ongoing anti-government protests in Tahrir Square, Baghdad, Iraq, Saturday, Feb. 29, 2020. AP
A poster of Iraq's Prime Minister designate Mohammed Allawi with Arabic that reads, "The party candidate is rejected" is seen during ongoing anti-government protests in Tahrir Square, Baghdad, Iraq, Saturday, Feb. 29, 2020. AP
A poster of Iraq's Prime Minister designate Mohammed Allawi with Arabic that reads, "The party candidate is rejected" is seen during ongoing anti-government protests in Tahrir Square, Baghdad, Iraq, S

Iraq's Parliament postpones vote to approve Cabinet as deadline looms


Mina Aldroubi
  • English
  • Arabic

The Iraqi Parliament on Sunday postponed for a third time a session to pass Prime Minister-designate Mohammed Allawi’s proposed Cabinet due to lack of quorum.

Mr Allawi held meetings with parliamentary groups and key officials, such as Speaker Mohammed Al Halbousi, but struggled to secure support from political blocs.

Mr Allawi needs a simple majority of the Parliament's 329 MPs to pass his government, the Iraqi Supreme Court said.

More than a 100 politicians showed up to Sunday's session, according to local reports said. No date has been set for the next sitting.

Political parties have until Monday to end their stalemate and agree on a new government or President Barham Salih will, as required by the constitution, designate a prime minister to end the protracted political vacuum.

Political sources say Mr Salih intends to propose intelligence chief Mustafa Al Kazimi.

Iraq's Parliament is the most divided in its recent history and Mr Al Allawi is struggling to secure support from Sunni Arab and Kurdish minorities for his Cabinet.

Over the past week, he has adjusted the line-up to bolster support, while also holding talks with Sunni and Kurdish representatives.

The deadlock has failed to calm public anger over corruption and poor public services that have rocked the country since October.

Anti-government protesters oppose Mr Allawi as they view him as part of the political system they want to bring down.

Mr Allawi, the previous minister of communications, was appointed to the position on February 2.

He had a month-long deadline to form a new government, if he gains Parliament's confidence he's expected to lead until early elections.

Mr Allawi had previously said that political blocs were not allowing him to choose independent, nonsectarian individuals to head the next government.

Kurdish and Sunni parties who feel they will lose their position in Mr Allawi’s proposed government have severely opposed his choices.

Sunni leaders, especially Mr Al Halbousi, and Kurdish parties have been so set in their positions that there is no turning back for Mr Allawi, said Kirk Sowell, an Iraq expert at Utica Risk Services.

“Allawi would have to cave into them and nominate their people to get their support," Mr Sowell said. "As it is, he is going to face protests over the lack of a clear commitment to early elections, which he has promised."

The delay prolongs the deadlock the country is facing after anti-government protests broke out four months ago, forcing the resignation of prime minister Adel Abdul Mahdi.

More than 500 people have been killed in the protests.

Protests in Baghdad's Tahrir Square on Sunday morning demanded that Mr Allawi withdraw his nomination.

He issued an ambitious list of promises when he was nominated in early February, which include early elections, holding to account those who killed protesters in the anti-government demonstrations, ending foreign interference and keeping non-armed groups in check.

Mr Allawi is not backed by any of the political parties in Parliament.

A parliamentary source said early on Sunday that voting on Mr Allawi's proposed ministerial Cabinet "is subject to the amendments imposed on him by the opposing blocs".

"If no amendment is made to the ministerial Cabinet, the session will not be held to give confidence," the source said.

The first session was held last Thursday but failed to have the numbers and many politicians were unhappy with Mr Allawi's ministerial nominees.

A second session was expected to be held on Saturday but was delayed until Sunday.

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

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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  • Premier League-standard football pitch
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UAE currency: the story behind the money in your pockets
How to watch Ireland v Pakistan in UAE

When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

Last five meetings

2013: South Korea 0-2 Brazil

2002: South Korea 2-3 Brazil

1999: South Korea 1-0 Brazil

1997: South Korea 1-2 Brazil

1995: South Korea 0-1 Brazil

Note: All friendlies

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UAE currency: the story behind the money in your pockets
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• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”

• Prioritise a shift towards working with AI and autonomous systems

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• Number of active reserves should be increased by 20%

• More F-35 fighter jets required in the next decade

• New “hybrid Navy” with AUKUS submarines and autonomous vessels

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BUNDESLIGA FIXTURES

Friday (all kick-offs UAE time)

Hertha Berlin v Union Berlin (10.30pm)

Saturday

Freiburg v Werder Bremen (5.30pm)

Paderborn v Hoffenheim (5.30pm)

Wolfsburg v Borussia Dortmund (5.30pm)

Borussia Monchengladbach v Bayer Leverkusen (5.30pm)

Bayern Munich v Eintracht Frankfurt (5.30pm)

Sunday

Schalke v Augsburg (3.30pm)

Mainz v RB Leipzig (5.30pm)

Cologne v Fortuna Dusseldorf (8pm)

Results

2.15pm: Maiden (PA) Dh40,000 1,200m

Winner: Maqam, Fabrice Veron (jockey), Eric Lemartinel (trainer).

2.45pm: Maiden (PA) Dh40,000 1,200m

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3.15pm: Handicap (PA) Dh40,000 2,000m

Winner: Jaahiz, Fabrice Veron, Eric Lemartinel.

3.45pm: Handicap (PA) Dh40,000 1,000m

Winner: Qanoon, Szczepan Mazur, Irfan Ellahi.

4.15pm: Sheikh Hamdan bin Rashid Cup Handicap (TB) Dh200,000 1,700m.

Winner: Philosopher, Tadhg O’Shea, Salem bin Ghadayer.

54.45pm: Handicap (PA) Dh40,000 1,700m

Winner: Jap Al Yassoob, Fernando Jara, Irfan Ellahi.

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

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Result

Crystal Palace 0 Manchester City 2

Man City: Jesus (39), David Silva (41)