Protesters brandishing a European Union flag brace as they are sprayed by a water canon during clashes with riot police near the Georgian parliament in Tbilisi on March 7, 2023. - Georgian police used tear gas and water cannon against protesters Tuesday as thousands of demonstrators took to the streets in the capital Tbilisi to oppose a controversial "foreign agents" bill. (Photo by STRINGER / AFP)
Protesters brandishing a European Union flag brace as they are sprayed by a water canon during clashes with riot police near the Georgian parliament in Tbilisi on March 7, 2023. - Georgian police used tear gas and water cannon against protesters Tuesday as thousands of demonstrators took to the streets in the capital Tbilisi to oppose a controversial "foreign agents" bill. (Photo by STRINGER / AFP)
Protesters brandishing a European Union flag brace as they are sprayed by a water canon during clashes with riot police near the Georgian parliament in Tbilisi on March 7, 2023. - Georgian police used tear gas and water cannon against protesters Tuesday as thousands of demonstrators took to the streets in the capital Tbilisi to oppose a controversial "foreign agents" bill. (Photo by STRINGER / AFP)
Protesters brandishing a European Union flag brace as they are sprayed by a water canon during clashes with riot police near the Georgian parliament in Tbilisi on March 7, 2023. - Georgian police used

Georgia backs down after nights of violent protests


Gillian Duncan
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Georgia has promised to revoke a new pro-Russia law on "foreign agents" after two nights of mass rallies, during which police fire tear gas at thousands of demonstrators.

Protestors banded together to protect a woman waving a European Union flag as police targeted her with a water cannon in Tbilisi.

Concern has been growing that the former Soviet nation, which aspires to join the EU and Nato, is taking an authoritarian turn and maintaining links with Moscow.

The legislation, which had been prepared by ruling party Georgian Dream, is seen as reminiscent of Russian legislation used to silence critics.

Georgian Dream said in a statement the bill had been "represented in a bad light and in a misleading way", adding that it would launch public consultations to "better explain" the law's purpose after announcing its withdrawal.

Experts say only a tiny portion of Georgia’s population is pro-Russian.

Plans to join Nato and the EU are enshrined in Georgia's constitution and are supported by at least 80 per cent of the population, according to opinion polls.

Georgian opposition parties vowed on Thursday to continue protesting despite the ruling party's promise to revoke the legislation.

"For as long as there are no guarantees that Georgia is firmly on a pro-western course, these processes will not stop," a group of opposition parties said in a joint statement, announcing another rally on Thursday evening and demanding the release of dozens of detained protesters.

A European Union delegation in Georgia immediately cheered the halt, saying they "encourage all political leaders in Georgia to resume pro-EU reforms".

Protests in Georgia - in pictures

  • One protestor holds the Georgian flag in front of a burning barricade. AP
    One protestor holds the Georgian flag in front of a burning barricade. AP
  • Protesters holding a European Union flag are sprayed by a water cannon near the Georgian parliament in Tbilisi. AFP
    Protesters holding a European Union flag are sprayed by a water cannon near the Georgian parliament in Tbilisi. AFP
  • Georgian police detain a woman as she takes part in the protests. EPA
    Georgian police detain a woman as she takes part in the protests. EPA
  • Police use a water cannon to disperse demonstrators in Tbilisi. Reuters
    Police use a water cannon to disperse demonstrators in Tbilisi. Reuters
  • Police cars have been set on fire during the demonstrations. AP
    Police cars have been set on fire during the demonstrations. AP
  • Violence has regularly broken out. Reuters
    Violence has regularly broken out. Reuters
  • Several cars have been overturned. Reuters
    Several cars have been overturned. Reuters
  • Riot police have been drafted in. AFP
    Riot police have been drafted in. AFP
  • Many protestors have brought national flags. Reuters
    Many protestors have brought national flags. Reuters

Huge crowds had gathered in front of the parliament building in central Tbilisi on Wednesday, holding EU and Georgian flags, and chanting "no to the Russian law".

The protesters demanded authorities drop the bill on "transparency of foreign funding", which critics said mirrors a law used in Russia to shut down media and dissenting groups.

Elene Ksovreli, 16, said Georgians did not want to see their future threatened.

"We will not allow them to make Russia define our future," she told AFP. "We, young people, are here to protect our everything."

Another demonstrator, 72-year-old Aza Akhvlediani, called the country's government "stupid".

"I know what's happening in Moscow. They stop every passerby and do whatever they please to them. I think the Georgian government wants the same," she said.

In response to the developing situation, Washington urged the government to show restraint and allow peaceful protests, while Ukrainian President Volodymyr Zelenskyy called for "democratic success" in "friendly Georgia".

Protesters were also out on Tuesday after ruling party members approved the draft law on "foreign agents" in its first reading.

Clashes ensued with police using tear gas and water cannon against the demonstrators.

Police said more than 70 demonstrators had been detained and 50 police officers injured during the protests on Tuesday.

Tom de Waal, a senior fellow at Carnegie Europe, said that both the bill and crackdown were a serious challenge in the politically turbulent country.

"It's a big moment for Georgia, still a democracy, but definitely a struggling one," he said on Twitter.

In Russia, the Kremlin has extensively used the "foreign agent" label against opponents, journalists and human rights activists accused of leading foreign-funded political activities.

Georgian authorities have faced mounting international criticism over a perceived backsliding on democracy, seriously damaging Tbilisi's ties with Brussels.

Georgian Prime Minister Irakli Garibashvili has defended his balanced policy as being aimed at ensuring "peace and stability".

But President Salome Zourabichvili, who vowed to veto the law it if crosses her desk, said earlier this week she was on the side of the protesters.

"You represent a free Georgia, a Georgia which sees its future in the West, and won't let anyone take this future away," she said in an address recorded in the United States, where she was on an official visit at the time.

"Today is a dark day for Georgia's democracy," the US embassy in Georgia said after the initial reading of the bill.

Russia and Georgia fought a five-day war in 2008.

Georgia applied for EU membership together with Ukraine and Moldova, days after Russia invaded Ukraine in February last year.

EU leaders granted formal candidate status to Kyiv and Chisinau in June, but said Tbilisi must implement several reforms first.

Georgia's treatment of jailed former president Mikheil Saakashvili, whose health has drastically deteriorated in prison, has also drawn international condemnation.

Late last month, European Union member states issued a formal diplomatic warning to Georgia's leaders over Mr Saakashvili's health.

What is Reform?

Reform is a right-wing, populist party led by Nigel Farage, a former MEP who won a seat in the House of Commons last year at his eighth attempt and a prominent figure in the campaign for the UK to leave the European Union.

It was founded in 2018 and originally called the Brexit Party.

Many of its members previously belonged to UKIP or the mainstream Conservatives.

After Brexit took place, the party focused on the reformation of British democracy.

Former Tory deputy chairman Lee Anderson became its first MP after defecting in March 2024.

The party gained support from Elon Musk, and had hoped the tech billionaire would make a £100m donation. However, Mr Musk changed his mind and called for Mr Farage to step down as leader in a row involving the US tycoon's support for far-right figurehead Tommy Robinson who is in prison for contempt of court.

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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Updated: March 09, 2023, 11:23 AM