An uprising in 2011 led to the overthrow of Tunisia's autocratic president Zine El Abidine Ben Ali. AP
An uprising in 2011 led to the overthrow of Tunisia's autocratic president Zine El Abidine Ben Ali. AP
An uprising in 2011 led to the overthrow of Tunisia's autocratic president Zine El Abidine Ben Ali. AP
An uprising in 2011 led to the overthrow of Tunisia's autocratic president Zine El Abidine Ben Ali. AP

Protests erupt in Tunisian cities amid anger over economy


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Violent protests broke out in at least six Tunisian cities on Saturday night, including the capital Tunis and the coastal city of Sousse, as anger mounts over economic hardship.

Security forces fired tear gas to disperse hundreds of protesters who blocked roads and burnt tyres in Sousse, where young men also broke into shops, witnesses and security sources said.

Clashes were reported in the nearby city of Kalaa Kebira and in several areas of Tunis, including Ettadhamen, Mallassin and Fouchana and Sijoumi.

There were also night protests and riots in the northern towns of Kef, Bizerte and Siliana.

The protests were reportedly sparked by a video posted on social media that showed a policeman scolding and pushing a shepherd whose sheep had entered the governerate headquarters in Siliana.

Activists said that it was unacceptable to harm the dignity of any citizen, a decade after Tunisians revolted against injustice and oppression. The Public Prosecution office opened an investigation into the incident.

Tunisia last week marked 10 years since the overthrow of autocratic president Zine El Abidine Ben Ali in an uprising triggered by widespread unemployment, poverty, corruption and injustice. While the country established a functioning democracy, the problems behind the uprising have not been resolved.

The protests pose a challenge for Prime Minister Hichem Mechichi, who announced a major Cabinet reshuffle on Saturday that affected 12 ministries.

"The aim of this reshuffle is to achieve greater efficiency in the work of the government," Mr Mechichi said.

The changes must be approved by parliament.

A few hours before the announcement, he met President Kais Saied, who said integrity of proposed ministers should "raise no doubt", according to the presidency.

"There is no place for people who are subject to legal proceedings" or to doubts about "their background or their behaviour that could undermine the state and the credibility of its institutions and the legitimacy of its decisions", Mr Saied said.

Health minister Faouzi Mehdi was replaced by another doctor, Hedi Khairi from Sousse, following criticism over the government’s handling of the coronavirus pandemic, with the official date for the start of vaccinations in Tunisia still unknown.

Chiheb Ben Ahmed, chief executive of the Tunisian Exports Promotion Centre, was nominated as environment minister after the previous incumbent, Mustapha Aroui, was sacked and arrested in December in a scandal involving hundreds of containers of household waste shipped from Italy.

Cabinet chief Walid Dhahbi has been put forward as interior minister to replace Taoufik Charfeddine.

Mr Charfeddine, a former lawyer and pillar of Mr Saied's election campaign, was sacked this month over high-level staffing changes he sought to make to some security agencies, according to Mr Mechichi.

The reshuffle also affects the ministries of justice, industry, energy and agriculture.

Tunisia has had nine governments in 10 years, but the transfers of power have been peaceful.

But since the 2019 general election, the political class has been more fragmented than ever and paralysed by infighting, fuelling discontent over the continued economic malaise, which has been exacerbated by the coronavirus pandemic.

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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.”

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