Supporters of Turkish president Recep Tayyip Erdogan wave flags after soldiers involved in the coup surrendered on Istanbul's Bosphorus bridge on July 16, 2016. Gokhan Tan/Getty Images
Supporters of Turkish president Recep Tayyip Erdogan wave flags after soldiers involved in the coup surrendered on Istanbul's Bosphorus bridge on July 16, 2016. Gokhan Tan/Getty Images
Supporters of Turkish president Recep Tayyip Erdogan wave flags after soldiers involved in the coup surrendered on Istanbul's Bosphorus bridge on July 16, 2016. Gokhan Tan/Getty Images
Supporters of Turkish president Recep Tayyip Erdogan wave flags after soldiers involved in the coup surrendered on Istanbul's Bosphorus bridge on July 16, 2016. Gokhan Tan/Getty Images

Most Turks may be against the coup attempt but they are far from united


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BEIRUT // Addressing the Turkish nation from the small screen of an iPhone being held up by a news presenter early on Saturday, for a moment president Recep Tayyip Erdogan did not appear to be in a position of much power.

Elements from the army had deployed troops and tanks on to the streets of Istanbul and Ankara, putschists were storming news outlets and military aircraft were attacking government targets.

But soon, Mr Erdogan’s desperate plea from hiding – that the Turkish people take to the streets against the coup makers – seemed to work. Across the country, people streamed into public squares and faced off with soldiers.

As forces supporting the government reasserted their power, Mr Erdogan arrived in Istanbul announcing that “a minority within the armed forces has unfortunately been unable to stomach Turkey’s unity”.

His statement was only partially correct.

Turkey’s parties and citizens of nearly every persuasion were vociferous in their opposition to the coup. Even the pro-Kurdish HDP party, who are regularly labelled as terrorists by Mr Erdogan’s government and whose constituents have seen many of their cities wrecked by war between Kurdish militants and government forces over the past year, condemned the coup. As did the Gulen movement, which the government blames for the attempted takeover.

But despite this, unity is something deeply lacking in Turkey.

Mr Erdogan’s shift towards authoritarianism, his aggressive foreign policy and empowerment of Islamists have caused deep resentment across the country.

The president has moved aggressively against dissent and free speech, taking over newspapers, locking up journalists and ensuring that the government’s line on events is dominant. His AK Party has accused the opposition in parliament of supporting terrorism, while protests are crushed.

Secularists in the country have been put off by Mr Erdogan’s empowerment of his party’s conservative religious supporters.

Beyond Turkey’s borders, Mr Erdogan abandoned Turkey’s cautious “no problems with neighbours” foreign policy in favour of attempting to build Turkey’s standing as a major regional power.

Turkey quickly moved to arm and harbour Syrian rebels fighting the government of Bashar Al Assad. When entangled in diplomatic spats with Russia and Israel, Turkey adopted an aggressive posture. And in bargaining with the European Union, Turkey threatened to flood Europe with migrants and refugees if it did not get the concessions it wanted. Ankara has also looked to establish a military footprint abroad, deploying troops to a new base in Qatar in May and making plans to open a base in Somalia.

Mr Erdogan’s government has backtracked on some of these issues recently – hashing out deals to normalise ties with Israel and Russia and saying just days ago that it wanted to pursue good relations with Syria – but its approach overall has been seen as volatile and aggressive by critics.

But although many would be pleased to see Mr Erdogan removed from power, few would welcome a military coup and a return to a military dictatorship. Past coups in Turkey have been bloody affairs followed by increased repression. They have been winner-takes-all contests with lots of losers.

And at a time of already great instability in Turkey, few would welcome the power struggles and potential civil unrest, or even war, that would have followed a successful coup.

For a year now, Turkey’s government has waged a renewed war against Kurdish separatists in the country’s south-east that has killed thousands, displaced hundreds of thousands and levelled huge portions of major cities. Turkey also recently stepped up its once lax fight against ISIL, bombing and shelling the group’s positions along the Syria-Turkey border.

In response, an extremist Kurdish faction and ISIL supporters have waged bombing campaigns targeting Ankara and Istanbul, along with other Turkish cities, bringing their conflicts to the heart of the country.

Despite eliciting hate from many in Turkey, Mr Erdogan enjoys wide popularity, significantly raising the possibility of more conflict if he were to be forced from power or his government threatened.

Beyond their failure to seize media outlets to control the narrative and to kill or capture major government figures, the putschists failed on a more fundamental level in predicting the reaction of the Turkish people. While there were pro-coup demonstrations, by and large the soldiers deployed on the streets found themselves confronted with surging crowds voicing their opposition. With tanks, fighter jets, helicopters and automatic weapons at their disposal, they could have fought, but it seems that many who were taking part in the coup came to the realisation that they were unwanted.

Mr Erdogan’s government already spoke as though there were enemies lurking around every corner, waiting for a chance to seize power. This paranoia fuelled his widening powers and the increasing repression of Turks under his leadership. And now that these fears have been proven valid to some degree, it is likely the repression will only increase further.

In his speech at Istanbul’s Ataturk airport on Saturday morning, Mr Erdogan vowed to punish those responsible for the coup attempt and said Turkey needed to “clean up” its military.

Already, nearly 3,000 soldiers have been detained and more than 2,700 judges removed from their positions.

And if Mr Erdogan uses the coup plot to move even more powerfully against his critics and opponents, divisions in the country will only harden.

“The pro-coup clique only wanted to seize the existing anti-democratic system, they did not act in favour of democracy,” said HDP head Selahattin Demirtas, in a statement condemning the botched coup attempt.

But, he added: “A progressive democracy does not appear by itself, just because the coup attempt was unsuccessful.”

jwood@thenational.ae

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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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