Some of the thousands of protesters called for “equality and justice” and criticised the regime that has been ruling Iran since 1979. EPA
Some of the thousands of protesters called for “equality and justice” and criticised the regime that has been ruling Iran since 1979. EPA
Some of the thousands of protesters called for “equality and justice” and criticised the regime that has been ruling Iran since 1979. EPA
Some of the thousands of protesters called for “equality and justice” and criticised the regime that has been ruling Iran since 1979. EPA

Thousands of Iranians protest in Isfahan over water shortages


Joyce Karam
  • English
  • Arabic

Thousands of Iranians gathered in Iran's third-largest city on Friday to protest water shortages and government mismanagement in the drought-stricken region.

“Let Isfahan breathe again, revive Zayandeh Rud,” chanted farmers who made up the majority of the protesters.

“Our children want water to provide food for your children,” read one sign.

Some called for “equality and justice” and criticised the regime that has been ruling Iran since 1979.

Mismanagement and rampant corruption have damaged the government's credibility and many doubt its ability to address the region's worst drought in 50 years.

Iran's Energy Minister Ali Akbar Mehrabian apologised for the water shortages while the country's First Vice President Mohammad Mokhber promised a swift resolution.

“I have ordered the ministers of energy and agriculture to take immediate steps to deal with the issue,” Mr Mokhber said on national television.

Farmers in Isfahan province have for years protested against the diversion of water from the Zayandeh Rud to other areas, which in times of drought has destroyed their crops and threatened their livelihoods.

While the protests in the daytime were met with a peaceful response, local reports from Isfahan on Friday night indicated possible internet disruptions and a heavier security presence.

Jason Brodsky, an Iran expert and policy director at United Against Nuclear Iran, saw Friday's protests as the continuation of a pattern in the response to drought issues throughout the year.

“We saw this dynamic during the protests in July in Khuzestan [south-western Iran] over water shortages, which witnessed chants against the regime. The problems we are seeing today are, in part, the result of decades of mismanagement and neglect,” Mr Brodsky told The National.

He expected the protests to continue but that the regime will be ready to crack down on them when it deems necessary.

“[Iran's President] Ebrahim Raisi's capacity to change the underlying situation is limited due to structural problems within the Iranian system, which will only produce more frustration and protests,” Mr Brodsky said.

He argued, however, that the regime has become adept at ruthlessly repressing such protests.

“The ascension of Ahmad Vahidi, a long-time Iranian Revolutionary Guard officer and former defence minister, as interior minister was telling, in that [it shows] the regime expects unrest to continue in the months and years ahead.”

Reuters contributed to this report

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Co-founders: Sami Elayan, Saed Elayan and Zaid Azzouka

Based: Dubai

Industry: Technology and food delivery

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Future plan: Looking to raise $400,000

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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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Updated: November 19, 2021, 9:40 PM