Iraqi parliament to decide speaker's fate



BAGHDAD // Iraq's parliament is reconvening an emergency session today to decide whether to oust its abrasive Sunni speaker in a row that has imperilled a key resolution on whether thousands of British and other non-US troops will be allowed to stay beyond New Year's Eve. Kurdish and Shiite lawmakers have given Mahmoud al Mashhadani until just after midday to either resign or be voted out of office - a move that could open the way for ratification of the resolution, possibly on the same day or on Wednesday.

If the resolution is not passed before a UN mandate expires on Dec 31, those troops would have no legal authority to remain in Iraq. Britain has already said it plans to withdraw its 4,000 troops from southern Iraq by the end of May. Australia, El Salvador, Estonia and Romania also have far smaller contingents. Under a separate agreement reached last month, US troops can remain in Iraq until the end of 2011.

Parliament is expected to meet in a closed-door session to decide Mr al Mashhadani's fate. Normally parliament would break up this week until January for a number of Islamic and Christian holidays. The fate of the resolution came into question during a vote last week when a debate over foreign forces degenerated into a shouting match between legislators over the arrest of an Iraqi journalist who threw his shoes at the US president George W Bush.

Mr al Mashhadani angered lawmakers from all parties by using abusive language and insulting a number of lawmakers. Kurdish and Shiite groups seeking his ouster have gathered signatures from 150 of the parliament's 275 deputies, far more than the 91 required to call for an ouster motion. That is also more than the 139 votes required to approve it. During a session on Monday to vote on the resolution, Mr al Mashhadani attempted to force the body to withdraw its opposition to him by threatening to put it into recess until Jan 7 - a week after the UN mandate expires. That followed a heated closed-door session that was marked by insults and shouting. He backed down after opposition lawmakers gathered enough signatures to force a vote against him and issued an ultimatum that he resign. Shiite lawmaker Diauddin al Fayadh said the lawmakers at the session will decide "either to enforce his resignation or to sack him."

If he is ousted, he will be replaced by one of his two deputies, and parliament can then approve the resolution. The main Sunni party will then choose a replacement. Elsewhere in Iraq, four policemen were killed and three others injured in bomb explosion in Tarmiyah, north of Baghdad. The bomb was planted outside the main gate of a house belonging to police Lt Col Ismaiel al Fandawi and detonated as he left for work, a police officer said. Mr al Fandawi, police chief in the nearby town of Mishada, was among those killed, according to a police officer. *AP

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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.”