Kuwaiti opposition slams government election 'coup'



KUWAIT // Opposition politicians yesterday described the Kuwaiti government's efforts to change the electoral laws before polls expected this year as a "coup", and promised to push for full parliamentary democracy.

In June, Kuwait's constitutional court effectively dissolved a parliament dominated by opposition Islamists and reinstated the previous, more government-friendly assembly.

The dispute deepened last week when the government decided to refer the electoral system to the constitutional court.

"The majority bloc views what is happening as a real coup by the political authority against the constitutional system - a coup aimed at seizing the rights of the nation through the constitutional court," opposition politicians said in a statement after a meeting that ended early yesterday.

The reinstated parliament has failed to convene twice in the past two weeks to confirm a new government, increasing the chances of an election being called. Analysts said this could happen after Ramadan, which ends at the weekend.

The opposition accused the government of dragging the judiciary into a political dispute over the boundaries of parliamentary constituencies that helped the opposition to win a majority in elections in February.

"The political authority, through the constitutional court, is trying to create a legislative vacuum that will allow it ... to have control over the legislative decision-making process with the aim of controlling ... the outcome of any future parliamentary election to monopolise power," the statement said.

Kuwait has long prided itself on having a fully elected legislature and lively debate but the ruling Al Sabah family still holds a firm grip on state affairs.

The most important cabinet posts are held by family members and the 83-year-old emir reserves the right to dissolve parliament.

The opposition urged the supreme judicial council and the constitutional court not to hear the case. "Confronting the scheming of the authorities is the responsibility of the whole Kuwaiti people," it said.

Politicians added that the response to the plans was to mobilise popular opposition and renew demands for political reforms.

"The opposition bloc sees that the popular effort should ... seek to revive the constitutional emirate to achieve an elected parliamentary government," it added.

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1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
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Company: Bidzi

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● Founders: Akshay Dosaj and Asif Rashid

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● No of employees: Nine

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  • In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
  • Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
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Best Player: Cristiano Ronaldo (Juventus)
Best Coach: Gian Piero Gasperini (Atalanta)
Best Referee: Gianluca Rocchi
Best Goal: Fabio Quagliarella (Sampdoria vs Napoli)
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Source: Federal Office for the Protection of the Constitution

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A UK-domiciled person, however, is liable for UK tax on their worldwide income and gains when they are resident in the UK.

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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