The new US ambassador to Iraq, Alina Romanowski, faces critical challenges as Washington tries to deal with Iraq’s power vacuum, growing security threats from Iran and a protest movement that is calling for structural change.
Ms Romanowski, 66, who was confirmed by the Senate last month, brings more than four decades of experience from across the US government and intelligence community, with a knowledge of Arabic and a focus on the Middle East.
Her last position as US ambassador to Kuwait saw improved relations between Washington and Kuwait City over a two-year span.
In her goodbye video from Kuwait last week, Ms Romanowski highlighted the cultural aspect of the job with snapshots of her in the desert and attending diwaniyas, a traditional Kuwaiti social gathering blending art and political discussions.
Her Iraq mission will be starkly different, said Doug Silliman, president of the Arab Gulf States Institute in Washington and former ambassador to Iraq and Kuwait.
“She is going to step into the middle of what is a difficult government formation process,” Mr Silliman told The National.
Six months after Iraqis voted in a parliamentary election, efforts to form a new Cabinet by the country’s political parties remain stalled amid ongoing disagreements over how to share the government posts.
Reckoning with the struggle inside Iraq between the protest movement known as Tishreen (October in Arabic) and the traditional sectarian stakeholders, is another change that could dictate the future direction of Iraqi politics.
In her confirmation hearing last month, Ms Romanowski said she would strengthen support for civil society groups.
“Bolstering Iraq’s independence and advancing citizen rights will be a top priority in my engagements," she told the Senate foreign relations committee.
"I will encourage Iraq’s political, economic, and civil society leaders to focus on building a prosperous and resilient" nation.
Mr Silliman said Ms Romanowski’s experience would work in her favour, including her extensive interagency experience within the US government, at the State and Defence Departments and at the US Agency for International Development.
“She can see the different aspects of the problem," he said. "And in Iraq, it's absolutely crucial that you're looking at intelligence issues, military issues, political issues, economic issues, trade issues, humanitarian and other kinds of business issues."
Iraq's security challenge is another dimension that could overshadow Ms Romanowski's coming ambassador duties.
Pro-Iran paramilitary forces have regularly launched missile attacks at the Green Zone that hosts the American embassy and tried to target US consulates and bases across Iraq.
Bilal Wahab, a senior fellow and Iraq expert at the Washington Institute for Near East Policy, said US diplomacy could benefit from a strategy to empower Iraqis, and that goes beyond blaming Iran.
“Blaming Iran won’t cut it. If the US government wants to be helpful, they should find a way to help Iraqis,” Mr Wahab told The National.
US-Iraq relations “remain anchored around US military presence, while broader economic and cultural ties remain thin", he said.
Issuing more student visas, as well as empowering Iraq’s youth and entrepreneurs currently inhibited by corrupt banking systems and a lack of reforms because of Iran's meddling, will be critical to grow the non-military side of the relationship, Mr Wahab said.
“An Iraqi artist or small business owner cannot sell music on Apple Music or open a PayPal account [because of the low confidence of western companies in Iraq's banking system]," he said.
"The Iraqis will be looking for her role in connecting the Iraqi people to the US despite the Iraqi government’s dysfunction."
Mr Wahab said the new US ambassador will be dealing with a political class that “cares very little, if at all, about Iraqi public opinion and grievances about corruption and shrinking freedoms and of economic opportunities".
“The Iraqis will be looking for her role in connecting the Iraqi people to the US despite the government dysfunction in Baghdad,” he said.
Ms Romanowski is expected to arrive in Iraq within weeks, succeeding departing ambassador Matthew Tueller.
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Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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Norway
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Canada
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Your rights as an employee
The government has taken an increasingly tough line against companies that fail to pay employees on time. Three years ago, the Cabinet passed a decree allowing the government to halt the granting of work permits to companies with wage backlogs.
The new measures passed by the Cabinet in 2016 were an update to the Wage Protection System, which is in place to track whether a company pays its employees on time or not.
If wages are 10 days late, the new measures kick in and the company is alerted it is in breach of labour rules. If wages remain unpaid for a total of 16 days, the authorities can cancel work permits, effectively shutting off operations. Fines of up to Dh5,000 per unpaid employee follow after 60 days.
Despite those measures, late payments remain an issue, particularly in the construction sector. Smaller contractors, such as electrical, plumbing and fit-out businesses, often blame the bigger companies that hire them for wages being late.
The authorities have urged employees to report their companies at the labour ministry or Tawafuq service centres — there are 15 in Abu Dhabi.
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Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.
Based: Riyadh
Offices: UAE, Vietnam and Germany
Founded: September, 2020
Number of employees: 70
Sector: FinTech, online payment solutions
Funding to date: $116m in two funding rounds
Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices
Batti Gul Meter Chalu
Producers: KRTI Productions, T-Series
Director: Sree Narayan Singh
Cast: Shahid Kapoor, Shraddha Kapoor, Divyenndu Sharma, Yami Gautam
Rating: 2/5
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
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You Were Never Really Here
Director: Lynne Ramsay
Starring: Joaquim Phoenix, Ekaterina Samsonov
Four stars
Super 30
Produced: Sajid Nadiadwala and Phantom Productions
Directed: Vikas Bahl
Cast: Hrithik Roshan, Pankaj Tripathi, Aditya Srivastav, Mrinal Thakur
Rating: 3.5 /5
Tax authority targets shisha levy evasion
The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.
Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".
The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.
He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.
"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.
As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.
Our legal consultants
Name: Hassan Mohsen Elhais
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The specs: 2019 Infiniti QX50
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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.”