Iran slams US and French criticism of electoral vetting



TEHRAN // Iran has accused the United States and France of "interference" over criticisms regarding the Islamic republic's barring of hundreds of candidates from next month's presidential election.

Tehran is "highly sensitive" about comments targeting its internal affairs, foreign minister Ali Akbar Salehi said, according to media reports yesterday.

"Elections in Iran are free and transparent. They are held based on the country's laws and regulations," said Mr Salehi's spokesman, Abbas Araqchi.

The Guardian Council, Iran's unelected electoral watchdog, on Tuesday cleared just eight male candidates out of 686 registrants to stand in the June 14 election.

The French foreign ministry spokesman Philippe Lalliot on Wednesday urged Iran to allow its people to "freely choose" their leaders.

Mr Araqchi advised Paris against "interference in the internal affairs of others and instead focus on their own domestic problems". He did not elaborate.

John Kerry, the US secretary of state, slammed Tehran on Friday for disqualifying candidates.

"I cannot think of anyone in the world ... who would not be amazed by a process in which an unelected Guardian Council, which is unaccountable to the Iranian people, has disqualified ... hundreds of potential candidates according to vague criteria," Mr Kerry said.

"The lack of transparency makes it highly unlikely that that slate of candidates is either going to represent the broad will of the Iranian people or represent a change."

Mr Salehi warned US officials against making "unjustified" comments.

"The best advice to American officials is for them to get their information from reliable sources and specialised advisers. They should also be aware of the repercussions of such unjustified comments."

The June 14 poll is the first presidential election since 2009, when allegations of fraud sparked street protests against the re-election of Mahmoud Ahmadinejad.

Two key figures, the moderate former president Ayatollah Akbar Hashemi Rafsanjani, and divisive Mr Ahmadinejad ally Esfandiar Rahim Mashaie - were among those disqualified.

The election comes with Iran at loggerheads with world powers over its nuclear ambitions and struggling to cope with harsh economic sanctions targeting its vital oil income.

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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.”

In numbers

- Number of children under five will fall from 681 million in 2017 to 401m in 2100

- Over-80s will rise from 141m in 2017 to 866m in 2100

- Nigeria will become the world’s second most populous country with 791m by 2100, behind India

- China will fall dramatically from a peak of 2.4 billion in 2024 to 732 million by 2100

- an average of 2.1 children per woman is required to sustain population growth