Relief as Afghan elections postponed



LONDON // Western governments breathed an audible sigh of relief yesterday after Afghanistan announced that it was postponing parliamentary elections due to be held in May. The country's independent election commission said that, instead of May 22, voting would not now take place until September 18.

Officially, the reason given for the delay is the cash-strapped authorities in Kabul need to garner an extra US$50 million (Dh184m) from the international community to stage the elections properly. Unofficially, the reason seems to be the pressure put on by the United States and European Union who felt that a spring election would not give time to introduce reforms that would avoid a repeat of the widespread fraud reported in last August's presidential election.

"The delay has brought great relief all round," a senior diplomat in London said yesterday. "The delay will allow extra [US and European] troops to improve the security situation in the south while reforms to the voting system will, hopefully, add to legitimacy of the results. "President [Hamid] Karzai would have come under pressure for postponement at the London conference on Afghanistan later this week.

He will still be expected to lay out in specific detail how and when reforms to the voting system will be implemented." The election commission said it was $50m short of the $120m needed to stage the elections. The cash is expected to be made available through the United Nations, but only when reforms have been made. Kai Eide, the chief UN envoy in Afghanistan, said this month Afghan law provided for a delay in voting, although Mr Karzai had said he wanted the original date to be met.

In a statement yesterday, the UN said the postponement would allow time to prepare for the vote and to improve the electoral process based on lessons learnt from past votes. "This would have been extremely difficult to do by the original date," it added. William Crosbie, Canada's ambassador in Kabul, said it was essential to overcome the deficiencies in the system that the presidential election had exposed.

"We encourage the Afghan government and the independent election commission to set the necessary conditions for parliamentary elections that are credible, secure and inclusive." The US Embassy said in a statement it respected the decision and would continue to work with the Afghan government "to pursue election reform for the upcoming parliamentary elections and for the long term". Zekriya Barakzai, a member of the commission, conceded that the delay was not only caused by "problems and constraints to get the proper budget" but also security concerns, logistical obstacles and the need to improve procedures.

Western critics, particularly the United States, have been warning for some time that support for Afghanistan could be further eroded if the parliamentary elections took place without major reforms. The fiasco surrounding the presidential elections caused deep unease in the West and resulted in UN-backed investigators rejecting more than a million ballots, nearly one-third of the votes cast. One of the changes that is likely to be demanded at this week's conference is the replacement of Azizullah Ludinas, the head of the election commission. His term expired on Saturday and he is considered too close an ally of Mr Karzai.

Until recently, the Afghan parliament has not played an important role in the running of the country. Now, however, MPs are flexing their political muscles and have twice rejected many of the president's nominations for his new cabinet. dsapsted@thenational.ae

2025 Fifa Club World Cup groups

Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.

Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.

Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).

Group E: River Plate, Urawa, Monterrey, Inter Milan.

Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.

Group G: Manchester City, Wydad, Al Ain, Juventus.

Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.

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.”

T20 World Cup Qualifier

October 18 – November 2

Opening fixtures

Friday, October 18

ICC Academy: 10am, Scotland v Singapore, 2.10pm, Netherlands v Kenya

Zayed Cricket Stadium: 2.10pm, Hong Kong v Ireland, 7.30pm, Oman v UAE

UAE squad

Ahmed Raza (captain), Rohan Mustafa, Ashfaq Ahmed, Rameez Shahzad, Darius D’Silva, Mohammed Usman, Mohammed Boota, Zawar Farid, Ghulam Shabber, Junaid Siddique, Sultan Ahmed, Imran Haider, Waheed Ahmed, Chirag Suri, Zahoor Khan

Players out: Mohammed Naveed, Shaiman Anwar, Qadeer Ahmed

Players in: Junaid Siddique, Darius D’Silva, Waheed Ahmed