Economic malaise the challenge for women in Arab Spring-swept countries



WASHINGTON // A lack of economic and social development in countries swept by the Arab Spring, and not the rise of Islamist parties, pose the greatest challenge to women, according to a study based on polling from Gallup.

The study, released today, reveals women share similar political outlooks as men and largely agree on the role of religion in society.

More than 35,000 people, over a three-year period beginning in 2009, were surveyed in person and by telephone, in Egypt, Syria, Bahrain, Tunisia, Libya and Yemen for the study After the Uprisings: Arab Women on Rights, Religion and Rebuilding.

Originally part of Gallup's routine tracking of public opinion in the Muslim world, the survey took shape in 2011 as uprisings gathered steam.

The upheavals in some cases significantly affected the study, with no polling possible in Libya in 2011, while the continuing fighting in Syria renders results there incomplete.

The study sought to address whether the rise of Islamist parties, in countries where heads of states have been toppled, indicate the revolutions have turned against women, said Dalia Mogahed, executive director of the Gallup Centre for Muslim Studies.

The research suggests that while "women have suffered" as a result of the uprisings, it is not for the reasons sometimes assumed, said Ms Mogahed. "Women's biggest challenge is not the rise of the Islamist parties. Their biggest challenges are economic, because of a lack of stability and security."

The surveys showed that most men and women believe that women should enjoy equal rights and that they see no contradiction with that and a prominent role for religion in society.

The study concludes that to promote women's rights in the region, policymakers should focus on general economic development. Women should also be encouraged to play a greater role in interpreting religious principles, the authors suggest.

Women and men agree that economic issues are the most pressing ones facing their countries. Only in Egypt did the genders express optimism about their economic prospects, with the outlook in other countries deemed bleak. Bahrain saw an increase in those who reported they were satisfied with their standard of living at 66 per cent in 2011, up from 60 per cent a year earlier.

The survey reported Arab women in 2011 felt less secure after upheavals in their countries. In Tunisia, in 2009, 78 per cent said they felt secure walking home alone at night. In 2011, that number dropped to 30 per cent. During the same period in Egypt, the results dropped from 76 to 57 per cent while, in Yemen, it decreased from 58 per cent to 50.

Of all six countries surveyed, however, only Tunisia had reported an increase in crime.

Most the people surveyed also supported the idea of equal rights for men and women, although not always in equal numbers. In Tunisia, 59 per cent of men supported equal rights as opposed to 89 per cent of women. It was least pronounced in Syria, with 80 per cent of men and 82 per cent of women supportive.

The survey also showed similar attitudes towards Islamist parties. In Egypt, 49 per cent of men and 48 per cent of women said they supported the Muslim Brotherhood, whose political wing garnered the support of 52 per cent of men and 47 per cent of women surveyed. Only 1 per cent separated the number of men and women supporting the Nour party - 31 to 30.

Most women and men also supported Sharia as the basis of new legislation, according to the survey.

"Right now it's really about basic needs," said Ms Mogahed. "Women are very similar to men in their most urgent priorities. Those are jobs, education, economic development and security and stability."

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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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