BAGHDAD // Turkish and Qatari support for Syrian insurgents is tantamount to a declaration of war against Iraq, which will suffer from the fallout of an increasingly sectarian conflict next door, an Iraqi Shiite politician says.
Hadi Al Amiri, transport minister and head of the formerly armed Badr Organisation, said Turkey and Qatar had stymied all efforts to resolve the Syrian conflict peacefully.
Iraq is calmer than in the communal bloodletting that killed tens of thousands in 2006-2007, but the war in Syria is straining its precarious sectarian balance.
Mr Al Amiri accused Ankara and Doha, which support the opposition to Syrian President Bashar Al Assad, of arming extremist groups in Syria, where many Sunni militants are fighting, including Nusra Front, which has links to Al Qaeda in Iraq.
"Presenting money and weapons to al Qaeda [in Syria] by Qatar and Turkey is a declaration of armed action against Iraq," Mr Al Amiri said this week. "These weapons will reach Iraqi chests for sure."
Sectarian-tinged unrest has been on the rise in Iraq. Tens of thousands of Iraqi Sunnis have staged protests against prime minister Nouri Al Maliki's Shiite-led government in their western stronghold of Anbar bordering Syria, and Al Qaeda has urged them to take up arms.
Al Qaeda-linked militants appear to be regrouping in Anbar's caves and valleys, with some moving into Syria to join the fight against Mr Al Assad, whose Alawite sect springs from Shiite Islam.
Scores of Iraqi Shiite militants are also fighting in Syria alongside forces loyal to Mr Al Assad, who is backed by Shiite Iran.
Mr Al Amiri, whose Badr Organisation laid down its weapons in 2004, said he was against militias, criticising the recent formation of a new Shiite militia named Al Mukhtar Army.
Some people in Baghdad's south-western district of Jihad have received death threat leaflets signed by Al Mukhtar Army telling them to leave the mixed Sunni-Shiite neighborhood.
"Using militias again is a big mistake," Mr Al Amiri said. "If we [Shiites] form militia and they [Sunnis] form militia, then Iraq will be lost."
Speaking on the Baghdad government's dispute with autonomous Kurds over land and oil rights in the north, Mr Al Amiri said this should not undermine traditional ties between Shiites and Kurds who were both oppressed under Saddam Hussein, Iraq's longtime dictator.
"This has nothing to do with this deep strategic alliance. Technical problems have to be fixed based on the constitution and the oil and gas law," he said.
Baghdad says it alone has the authority to control Iraqi oil exports, while the Kurds say their right to export from their autonomous northern region is enshrined in Iraq's federal constitution, drawn up after the US-led invasion of 2003.
New legislation to govern the world's fourth largest oil reserves has been caught up for years in a struggle over how to share power between Iraq's Sunni, Shiite and Kurdish factions, which has intensified since US troops withdrew a year ago.
"Frankly, we are in the federal government and the prime minister is serious about this issue," Mr Al Amiri said. "He won't make a concession ... he is a stubborn and won't bargain".
Company%20profile
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Libya's Gold
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
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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.”
PROFILE OF SWVL
Started: April 2017
Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh
Based: Cairo, Egypt
Sector: transport
Size: 450 employees
Investment: approximately $80 million
Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani