Iraqi elections only the first step on a long road


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Despite the great importance of the Iraqi election, it remains one mile in a long journey. And irrespective of the nature of the new government, it should address a host of challenges, remarked Kamel Youssef Hussein in a comment piece for the UAE newspaper Al Bayan. At the forefront is the rebuilding of the country. To achieve this, there is a need to eradicate corruption and establish a culture of transparency. To start with, the government has to study carefully cases of people who suffered during the invasion and should pursue ways to compensate them. The government should also legally prosecute the responsible.

Second, there should be a new strategy to handle oil concessions since the current method is ineffective in providing a strong platform for developing oilfields and hence meeting the overall economic development needs of the country. Third and foremost, Iraq needs to reopen issues of smuggled money during the occupation. This issue can be considered in accordance with the international law to examine the fate of $150 billion allocated for the reconstruction programme. US investigators expected that cases will be filed by the end of this year in the US against US officials, who are suspected of embezzling large amounts of money destined to rebuild Iraq. While this is taking place, a question arises: is there any Iraqi action to restore Iraqi funds?

Unfortunately, the Palestinians have yet to realise that their cause is no longer a pan-Arab issue, and that those who insisted in the Rabat summit in 1974 to consider the Palestinian Liberation Organisation as the sole legitimate representative of the Palestinian people would in fact like to repudiate the issue altogether, observed Saleh al Qallab in a comment article for the Kuwaiti newspaper Al Jareeda.

The same is true for Palestinians based in London who, instead of engaging effectively in resistance back home, aimlessly blame Arab regimes and call Arabs to overthrown them. There is no doubt that both Arabs and Muslims are to blame for the current situation of the Palestinian cause. But for Arabs to have a hand in the issue, the Palestinians need to comply with calls for national reconciliation. That is, the government in Gaza should be dissolved and a new legislative and presidential election be held to elect future leaders that can help translate the people's aspirations for an independent state. There is no point any more for various factions to blame others for their lot. It is time for Palestinian politicians to be proactive and solve their internal problems, especially the divisions among them. They should understand that today's reality is so different from the past: Arab countries are also dumped with tons of issues and priorities they should handle.

"Ali Belhadj, the deputy leader of the banned Islamic Salvation Front (FIS), has called for changing the Arab regimes before liberating Palestine. Of course, he did not mention how or when. Ironically, he overlooked his failure to change the Algerian regime, though he has spared no effort in instigating revolt against it," wrote Abdul Rahman al Rashed in a comment piece for the London-based newspaper Asharq Al Awsat.

Known for an overwhelmingly extremist attitude, he has loyal followers that adore him. Even after more than two decades of Algeria's tumult, he has remained unchanging, attacking Islamic fellows who reviewed their convictions and condemned extremism. "Not only did he bring disaster to Algeria in the past, but is now trying to sabotage the Arab region. The 1988 elections could have been a successful story had he not threatened the political and military establishments, which prompted the army to intervene to cancel the election results." Moreover, he declared he would not alternate governance after winning the elections and described the existing system as well as a great segment of society as infidel. Mr Belhadj, who only succeeded in sowing feelings of hatred, is using now the Palestinian cause to justify his call, reminiscent of Saddam Hussein, who launched wars in Iran and Kuwait on similar grounds. Belhadj's insatiable obsession with power is limitless. He will not cease basing his claim on various grounds.

On his recent visit to the Middle East, the Brazilian president Luiz Inacio Lula da Silva paid his respects at the mausoleum of the late Palestinian president Yasser Arafat in the West Bank with flowers in his hand, a gesture that reflects the man's esteem for the Palestinian people and their legitimate resistance, stated the London-based newspaper Al Quds al Arabi.

This was further validated by Mr da Silva's refusal to place a wreath of laurels at the grave of Theodore Herzl, the founder of the Zionist movement. "The Brazilian president, who has played a big part in pushing his country forward and turning it into an up-and-coming superpower, knows very well the history of the Arab-Israeli conflict, and is fully aware of the oppression that the Palestinians have been subjected to at the hands of the Zionist movement," the newspaper said.

Avigdor Lieberman, the Israeli foreign minister, couldn't get his mind around the fact that the Brazilian statesman would have that level of compassion for the Palestinians' plight. He boycotted Mr da Silva's address to the Knesset in protest. It seems that Israel has got used to world leaders applauding its attacks on Gaza and Lebanon and giving their blessings to its Judaisation activities in Jerusalem, according to the editorial.

* Digest compiled by Mostapha El Mouloudi melmouloudi@thenational.ae

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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.”