One thing the Arab world has in abundance is grand cities. From Kairouan in Tunisia, through Cairo, Damascus, Sanaa and Jerusalem, there is scarcely an Arab country without one or more World Heritage sites. As other Arab cities have risen, most of these cities have, sadly, faded from their former glory, either through war, occupation, economic hardship or political mismanagement.
In recent decades, Baghdad has suffered from all four. The news over the weekend that a consulting group had ranked Baghdad at the bottom of a list of 239 cities for quality of life seemed to prove what the residents of this contested city have long known: that life in one of the region’s most storied and glorious capitals has been in decline for decades.
In the great singer Fairuz’s hymn to the city, Baghdad and the Poets, she recalled the days of its glory, “its sweet scent” and the “joyful life” of its past. And indeed Baghdad can comfortably claim, at the height of the Abbasid empire, to have been among the greatest cities on Earth.
Yet the real tribulations of Baghdad have come in the last century. The story of Baghdad over the past 100 years has mirrored the story of the Middle East, of the flourishing of a region cut short by wars, occupation and political stagnation. Iraqis have ruled their own country for only about half of the past century.
Baghdad was an important part of the cultural renaissance, the Nahda, of the late 19th and early 20th century, a time of intellectual and artistic flourishing across the region. It was abbreviated in Iraq by the British occupation from the 1930s, though it continued in Egypt and the Levant for a decade longer until the Second World War.
Later, after the July Revolution of 1958, the city again became a centre of modernisation and even today Iraqis look back at that period with wistful fondness. Baghdad rapidly became the Middle East’s most cosmopolitan city, rivalled only by Cairo and Beirut. The infrastructure of the city was updated and beautiful buildings (of the prevailing architectural style) sprang up. A more forward-looking attitude also took hold as the city became a centre for travellers and business.
The end of that period came with the rise of Saddam Hussein and his decades-long domination. Under his rule, the country stagnated, although, as many Iraqis today point out, there was law and order and a degree of prosperity. The period of turmoil ushered in by the Iraq war of 2003 and the subsequent occupation continues today.
It is no wonder that residents of Baghdad lament the loss of their city. And yet Baghdad has been through worse days (though that is scant comfort for its residents today) and, as it has over the centuries, risen again.
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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.”
The Brutalist
Director: Brady Corbet
Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn
Rating: 3.5/5
The Case For Trump
By Victor Davis Hanson
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
Seven tips from Emirates NBD
1. Never respond to e-mails, calls or messages asking for account, card or internet banking details
2. Never store a card PIN (personal identification number) in your mobile or in your wallet
3. Ensure online shopping websites are secure and verified before providing card details
4. Change passwords periodically as a precautionary measure
5. Never share authentication data such as passwords, card PINs and OTPs (one-time passwords) with third parties
6. Track bank notifications regarding transaction discrepancies
7. Report lost or stolen debit and credit cards immediately
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Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital
The%20specs
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