• An earthmover clears debris still left from the Battle of Mosul, when government forces regained the northern Iraqi city from ISIS in 2017. AFP
    An earthmover clears debris still left from the Battle of Mosul, when government forces regained the northern Iraqi city from ISIS in 2017. AFP
  • A building destroyed during the fighting in Mosul in 2017. AFP
    A building destroyed during the fighting in Mosul in 2017. AFP
  • An earthmover clears debris from a street in Mosul. AFP
    An earthmover clears debris from a street in Mosul. AFP
  • The ruins of buildings destroyed during the battle for Mosul, on the shore in the Tigris river. AFP
    The ruins of buildings destroyed during the battle for Mosul, on the shore in the Tigris river. AFP
  • The old city in western Mosul, where ISIS made its final stand, was devastated by the fighting. AFP
    The old city in western Mosul, where ISIS made its final stand, was devastated by the fighting. AFP
  • A newly renovated house in Mosul. AFP
    A newly renovated house in Mosul. AFP
  • Machinery clears debris still left from the Battle of Mosul. AFP
    Machinery clears debris still left from the Battle of Mosul. AFP
  • Iraqis fill up forms outside the department in charge of compensating Mosul residents for losses suffered during the battle for the city. AFP
    Iraqis fill up forms outside the department in charge of compensating Mosul residents for losses suffered during the battle for the city. AFP
  • An employee checks an application form submitted at the general compensation department in Mosul. AFP
    An employee checks an application form submitted at the general compensation department in Mosul. AFP

Three years after ISIS, Mosul residents still waiting to rebuild


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  • Arabic

Ahmed Hamed has dreamt of rebuilding his pulverised home in Iraq's Mosul from the moment government forces recaptured the northern city from ISIS in 2017. But three years on, it remains a pile of rubble.

He is among tens of thousands of Iraqis who have filed claims to the Nineveh province's Subcommittee for Compensation, seeking reparations for material goods, injuries and even lives lost in the months-long fight to retake Mosul from the extremist militants.

"I still haven't gotten a cent, even though it's been so long since the liberation," said Mr Hamed, 25, who works menial day jobs to afford a small apartment.

His original home lies in Mosul's ravaged western half, where ISIS made its final stand in the city and where reconstruction has been the slowest.

Iraq gathered $30 billion (Dh110bn) in pledges from international donors in Kuwait in 2018 to rebuild, but virtually none of the funds have been disbursed.

The lack of progress has been widely blamed on Iraq's infamous bureaucracy, corruption that has siphoned off reconstruction funds and polarised city politics.

Amid the coronavirus pandemic and plummeting oil prices, Iraq's government is struggling to rake in enough monthly revenues to break even – pushing rebuilding even lower on its priorities list.

"Politicians keep telling us we need to go home," Mr Hamed said, slamming the government's insistence on closing down the camps where more than one million Iraqis, rendered homeless by the fighting, are still taking shelter.

"But how? Our homes are destroyed and there isn't a single public service that works."

According to a Norwegian Refugee Council survey in Mosul, more than 270,000 people remain unable to return home and of those living there, 64 per cent said they would be unable to pay rent in the next three months.

Every day, dozens of people queue outside a reception window at the Subcommittee for Compensation, clutching thick packets of multi-coloured forms they pray will be approved by the central committee in Baghdad.

Among them under the midsummer sun was Ali Elias, 65, who was hoping for news of his son, a soldier kidnapped by ISIS in 2017.

"I filed a claim on him shortly after the liberation, at least so we know what happened to him. It was sent to Baghdad, but no one answered," he said.

"I'm getting old and I'm exhausted by spending my life in these different government offices."

According to subcommittee head Mohammed Mahmoud, the body has received "90,000 claims, of which about 48,000 to 49,000 were for goods, houses, shops and other properties, and 39,000 for human loss – dead, wounded or missing".

"We processed three-fourths of the claims on material damage, but there aren't enough funds to actually pay them out. We were only able to compensate 2,500 families," he said.

Friday marked exactly three years since the Iraqi government declared victory over ISIS in Mosul on July 10, 2017. In one of their final acts, the militants blew up the Al Nuri mosque and its famous leaning minaret, which are now being restored with UAE assistance.

Most of the rebuilding efforts in the city have either been undertaken by individuals or by the United Nations and other international organisations.

The UN has reconstructed 2,000 homes, dozens of schools, healthcare centres, and water or power plants in Mosul since 2018, but even it has faced challenges.

According to a recent report by the American University of Iraq in Sulaimaniyah, the UN Development Programme (UNDP) complained the "government is stalling or blocking projects rather than facilitating them".

Seeking to root out corruption, the UN introduced long vetting processes, which further delayed rebuilding.

The report accused ex-Mosul governor Nawfal Aqoub of seeking bribes and kickbacks from reconstruction companies.

Even when a project was completed, authorities often failed to hire staff, wrote its authors Zmkan Ali Saleem and Mac Skelton.

The scandalous testimonies found an audience in Iraqi Prime Minister Mustafa Al Kadhimi, who travelled to Mosul in June and promised things would change.

"I want to personally look at every contract for Mosul's reconstruction, so that we no longer see a single case of exploitation or corruption," said Mr Al Kadhimi, who took office in May.

But the outlook remains grim.

Already, the housing and migration ministries were two of the worst-funded, making up 2 per cent and 0.1 per cent of cabinet's 2019 budget, respectively.

They were the only two ministries whose salary expenses shrank that year.

"Baghdad has done too little in response to this catastrophe," said Muzaham Al Khayyat, who briefly governed the city when Mr Aqoub was ousted.

Now, with the government facing a liquidity crisis, authorities are scraping together funds each month to pay eight million workers, pensioners and welfare recipients.

Barely breaking even, they appear unwilling to grow costs further by funding compensation or reconstruction.

"We asked the finance minister to set aside up to 20 billion dinars [Dh61.6m] for compensation in Nineveh, but he hasn't approved our request," said lawmaker Mahasen Hamdoun, who hails from the province.

"Kadhimi promised a lot during his visit, but nothing was done."

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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.”