Italian Prime Minister Giuseppe Conte visits the scene of last month's massive explosion at Beirut port, in the Lebanese capital on September 8, 2020. Reuters
Italian Prime Minister Giuseppe Conte visits the scene of last month's massive explosion at Beirut port, in the Lebanese capital on September 8, 2020. Reuters
Italian Prime Minister Giuseppe Conte visits the scene of last month's massive explosion at Beirut port, in the Lebanese capital on September 8, 2020. Reuters
Italian Prime Minister Giuseppe Conte visits the scene of last month's massive explosion at Beirut port, in the Lebanese capital on September 8, 2020. Reuters

Italy adds to European calls for change in Lebanon amid crisis


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Italy's prime minister said it was time for Lebanon to rebuild trust between the people and its institutions, joining France's call for change in a nation devastated by a year-long economic crisis and last month's massive explosion at Beirut port.

Prime Minister Giuseppe Conte was visiting Beirut a week after a trip by French President Emmanuel Macron, who has been leading international efforts to push through major reforms in Lebanon to end decades of state corruption and mismanagement.

"Now is the time to look ahead and build trust between the citizens and institutions, and to turn a new page in Lebanon's history," Mr Conte said after talks with Lebanese President Michel Aoun. Italy and the European Union, Mr Conte said, were ready to help.

His comments were carried in Arabic by the Lebanese national news agency and broadcasters.

During last week's visit, Mr Macron said Lebanese politicians, who usually bicker for months over forming a new government, had promised to agree on a new cabinet under Prime Minister-designate Mustapha Adib in two weeks, by mid-September.

The swift formation of a new government is the first step in a list of demands laid out in a French political roadmap that should open the way for Lebanon to receive billions of dollars in aid needed to get the heavily indebted nation back on its feet.

Those aid pledges, first made at an international conference in 2018, were never delivered because Lebanon's previous governments never carried out promised reforms to the system.

Mr Adib will need to have a cabinet in pace by early next week to stay on track but, unlike in previous efforts to form a government, there has been little public discussion of ministerial names and public party haggling over posts.

Lebanese media and political sources say Mr Adib has proposed a smaller than usual cabinet of about 14 ministers, instead of the usual 24 or so. But the prime minister-designate, a former ambassador to Berlin, has not made any public statements yet.

If you go

The flights

Fly direct to London from the UAE with Etihad, Emirates, British Airways or Virgin Atlantic from about Dh2,500 return including taxes. 

The hotel

Rooms at the convenient and art-conscious Andaz London Liverpool Street cost from £167 (Dh800) per night including taxes.

The tour

The Shoreditch Street Art Tour costs from £15 (Dh73) per person for approximately three hours. 

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

Uefa Champions League semi-final, first leg

Tottenham 0-1 Ajax, Tuesday

Second leg

Ajax v Tottenham, Wednesday, May 8, 11pm

Game is on BeIN Sports

Recent winners

2002 Giselle Khoury (Colombia)

2004 Nathalie Nasralla (France)

2005 Catherine Abboud (Oceania)

2007 Grace Bijjani  (Mexico)

2008 Carina El-Keddissi (Brazil)

2009 Sara Mansour (Brazil)

2010 Daniella Rahme (Australia)

2011 Maria Farah (Canada)

2012 Cynthia Moukarzel (Kuwait)

2013 Layla Yarak (Australia)              

2014 Lia Saad  (UAE)

2015 Cynthia Farah (Australia)

2016 Yosmely Massaad (Venezuela)

2017 Dima Safi (Ivory Coast)

2018 Rachel Younan (Australia)

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Russia's Muslim Heartlands

Dominic Rubin, Oxford

Brief scores:

Arsenal 4

Xhaka 25', Lacazette 55', Ramsey 79', Aubameyang 83'

Fulham 1

Kamara 69'