Parliament ended the membership of Mohammed Al Halbousi, the former speaker, in November last year. AFP
Parliament ended the membership of Mohammed Al Halbousi, the former speaker, in November last year. AFP

Iraqi Parliament ends almost a year of political impasse by electing speaker



Iraq’s parliament on Thursday elected senior Sunni politician Mahmoud Al Mashhadani as its new Speaker, nearly one year after the dismissal of Mohammed Al Halbousi.

After the 2003 US-led invasion that toppled Saddam Hussein, Mr Al Mashhadani, 76, a former physician, emerged as one of the most prominent Sunni politicians. In 2004, he was a founding member of the National Dialogue Council, an umbrella group for Sunni parties.

The Islamist legislator took part in drafting Iraq’s constitution. He served as the country’s first speaker after the adoption of the constitution in 2005, starting from 2006 until his resignation in December 2008 amid widespread complaints about perceived erratic behaviour.

Mr Al Halbousi’s removal in November last year created an impasse and divisions among Sunni political factions over the choice of candidates for the post, as well as between the Shiite political factions as they sought to support candidates who would be close to them.

Then, the parliament terminated the membership of Mr Al Halbousi after a ruling by the country’s top court. He was accused by another Sunni politician of forging his signature and date on a resignation letter, prompting a rule by the Federal Supreme Court to remove him.

Under the country's power-sharing system, set up in 2003 to avoid more sectarian conflict after Saddam's regime was toppled in 2003, the post of speaker is held by a Sunni Arab, the President is Kurdish and the Prime Minister a Shiite Arab. But disputes between ethnic blocs often delay appointments to these posts.

Thursday's session was the third attempt to elect a new speaker after two failed sessions in January and May. In the first round of voting, none of the four candidates won the needed 166 votes, while in the second round, Mr Al Mashhadani received 182 votes, winning over Salem Al Issawi, acting speaker Muhsin Al Mandalawi announced.

Mr Al Mashhadani was supported by Mr Al Halbousi and the Shiite political factions, while Mr Al Issawi was backed by some Sunni political parties.

Iraqi Prime Minister Mohammed Shia Al Sudani congratulated Mr Al Mashhadani on his role and the Council of Representatives “for finalising this important constitutional milestone”.

The government reaffirmed its commitment to delivering its service-orientated and developmental programme with the legislation and oversight of the Council of Representatives, Mr Al Sudani said.

He said the government renews its legal and constitutional commitment to supporting the oversight role of the Council of Representatives, which complements the government’s work and reinforces its priorities in battling corruption and implementing reforms.

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Rating: 5/5

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Age: 40

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Mission: Promote world peace

Favourite poet: Al Mutanabbi

Role models: His parents 

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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: October 31, 2024, 8:20 PM