A handout image released by the press office of Iraqi Prime Minister Mustafa Kadhemi on May 9, 2020, shows him delivering a speech following the ministerial meeting of the new Iraqi cabinet in Baghdad AFP
A handout image released by the press office of Iraqi Prime Minister Mustafa Kadhemi on May 9, 2020, shows him delivering a speech following the ministerial meeting of the new Iraqi cabinet in Baghdad AFP
A handout image released by the press office of Iraqi Prime Minister Mustafa Kadhemi on May 9, 2020, shows him delivering a speech following the ministerial meeting of the new Iraqi cabinet in Baghdad AFP
A handout image released by the press office of Iraqi Prime Minister Mustafa Kadhemi on May 9, 2020, shows him delivering a speech following the ministerial meeting of the new Iraqi cabinet in Baghdad

Iraqi Prime Minister Mustafa Al Kadhimi vows to release detained protesters


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Iraqi Prime Minister Mustafa Al Kadhimi has promised to release protesters arrested for involvement in popular demonstrations.

Announcing a series of new government measures following his first Cabinet meeting, Mr Al Kadhimi said all those who had been arrested for participation in the protests would be released with the exception of those suspected of involvement in killings.

“The detainees will be released except for those involved in the blood of the Iraqis. We will hold the negligent accountable and provide compensation to those affected,” the former Iraqi intelligence head said in a televised speech.

Mr Al Kadhimi’s government has also announced the creation of a committee to investigate attacks on protesters that took place from October onwards.

Addressing the grievances of the widespread protest movement that has swept Iraq in recent months is one in a long list of problems for the new Iraqi leader.

He has promised to consult with the protesters where the previous administration had sought to shut down demonstrations. Protesters were motivated by chronic unemployment, government corruption and the unfettered influence of neighbouring Iran on domestic Iraqi affairs.

The onset of the coronavirus outbreak and plummeting oil and gas revenues have entrenched the already formidable problems facing the new government.

The administration announced a series of measures including the release of funds earmarked for the payment of pensions and the approval of a draft law to allow domestic and foreign borrowing to address some of those financial problems.

Mr Al Kadhimi also reiterated his government’s key priority of creating a safe and secure environment for early elections to take place and support for the work of Iraq's electoral commission.

As such, the government requested expedited passage of the new electoral law and directed all ministries and official bodies to provide all necessary support to the electoral body.

Mr Al Kadhimi secured the premiership on Thursday, after two previous candidates failed to gain approval.

He has gained the tacit backing of the United States and Saudi Arabia and is seen as a figure that stands apart from the influence of Iraq’s powerful, Iran-backed popular mobilisation forces (PMF).

Further burnishing his credentials as a leader who will stand up to the armed groups, Mr Al Kadhimi also reinstated and promoted Lt Gen. Abdul Wahab Al Saadi, the former commander of the Iraqi Counter-Terrorism forces.

Lt Gen Al Saadi played a crucial role in the liberation of Iraq from ISIS from 2015 onwards. However, he was removed from his position last year as a concession to the PMF because of the counter-terrorism head’s close relations with the US.

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Lt Gen Erik Petersen, deputy chief of programs, US Army, has argued it took a “three decade holiday” on modernising tanks. 

“There clearly remains a significant armoured heavy ground manoeuvre threat in this world and maintaining a world class armoured force is absolutely vital,” the general said in London last week.

“We are developing next generation capabilities to compete with and deter adversaries to prevent opportunism or miscalculation, and, if necessary, defeat any foe decisively.”

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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.”

MATCH INFO

Manchester United v Manchester City, Wednesday, 11pm (UAE)

Match is on BeIN Sports

Friday's schedule at the Etihad Airways Abu Dhabi Grand Prix

GP3 qualifying, 10:15am

Formula 2, practice 11:30am

Formula 1, first practice, 1pm

GP3 qualifying session, 3.10pm

Formula 1 second practice, 5pm

Formula 2 qualifying, 7pm

Our legal columnist

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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