Supporters of Turkey's ruling AKP celebrate over the election results in Istanbul,Turkey, on June 7, 2015. With 99.9 percent of the vote counted, president Recep Tayyip Erdogan's AKP had the support of around 41 per cent of voters, putting an end to Mr Erdogan's hopes of passing constitutional changes that would have greatly boosted the powers of his office. Emrah Gurel/AP Photo
Supporters of Turkey's ruling AKP celebrate over the election results in Istanbul,Turkey, on June 7, 2015. With 99.9 percent of the vote counted, president Recep Tayyip Erdogan's AKP had the support oShow more

Turkey ruling party weighs options after election blow



Click here to see Turkey election results

ANKARA // Turkey’s ruling party is likely to need a coalition partner to form the next government after getting hit with surprisingly strong losses in a national vote, yet other parties vowed Monday to resist any such pact.

President Recep Tayyip Erdogan’s Justice and Development Party (AKP), won less than 41 per cent of the vote in Sunday’s election for Turkey’s 550-seat parliament. It was projected to take 258 seats, still top of the political heap but 18 seats below the minimum required to rule alone.

The results dealt a direct slap to Mr Erdogan, who had hoped to reshape Turkey’s democracy into one in which his more-powerful presidency — not the parliament — would wield most control of government affairs. Mr Erdogan, Turkey’s dominant political figure who served as prime minister from 2003 to 2014, had personally campaigned for the AKP in hopes of boosting the party’s 327 seats.

Some voters were angry that Mr Erdogan had ignored the law requiring him to be neutral.

“In a country where the president is supposed to be independent, the president was out in the field. ... He wanted to be the only one in power, and the people did not give him permission,” said Istanbul resident Zeki Altay, who hoped the opposition parties would unite against the AKP.

Prime minister Ahmet Davutoglu of the AKP convened his cabinet on Monday to chart the most likely course to remain in power, whether by coaxing a reluctant opponent to the table or by trying to rule alone in a parliament where the AKP will be outnumbered by three empowered rivals.

Mr Erdogan appealed for national unity and for political foes to come together to safeguard what he called “the gains made from stability and environment of trust in our country.”

In a statement Mr Erdogan, 61, conceded that his party needed a partner and could not run a stable minority government. The result, he said, “does not allow any party the possibility to govern alone” and required “a healthy and realistic assessment by all parties.”

The AKP’s surprise loss of parliamentary control looks likely to undermine Mr Erdogan’s ambitions to make Turkey a dominant regional power. The result also casts doubt over Mr Erdogan’s leadership of two years of peacemaking efforts with Kurdish leaders seeking to end a decades-old conflict that has cost tens of thousands of lives.

The AKP government could remain for a few months before a new government is formed or, in event of failure, a new election is called. The official results are expected to be certified within two weeks. Once all lawmakers take their oath of office, all parties will have 45 days to negotiate a new governing alliance.

But analysts say prospects have been soured by the divisive campaigning tactics of Mr Erdogan who led fierce, partisan attacks on rival parties.

Those parties — the centre-left Republican People’s Party (CHP), the right-wing Nationalist Movement Party (MHP) and the pro-Kurdish voice of the People’s Democratic Party (HDP) — all said on Monday they would not prop up an AKP-led government.

The government’s deputy prime minister, Numan Kurtulmus, said on Monday he was confident that his party would form a coalition with one of the other three. He called the idea of a new election a “distant possibility.”

The biggest change from Turkey’s previous parliament is the ascendancy of the People’s Democratic Party, a socially liberal force rooted in the Kurdish nationalism of Turkey’s south-east. It attracted more than 12 per cent of votes and is expected to win 80 seats.

Analysts said that breakthrough did the most damage to the AKP’s hopes, and the People’s Democracy leader said he had no intention of saving the government now.

“We have promised our people that we would not form an internal or external coalition with the AKP,” said Selahattin Demirtas. “We are clear on that.”

The party that finished second with a projected 132 seats, the Republican People’s Party, called for other opposition parties to help it force the AKP from power. But such an alliance would have to reconcile the anti-Kurdish conservatives of the Nationalists with the growing political voice of Turkey’s Kurdish minority.

On paper, the Nationalists with 16 per cent of votes and 80 seats appear closest in ideology and temperament to the AKP. But their leader, Devlet Bahceli, also is arguing that voters want the AKP out of power, even if that means running another election within months.

“Nobody has the right to sentence Turkey to an AKP minority government,” Mr Bahceli said. “Whenever there can be early elections, let them take place.”

*Associated Press

MATCH INFO

Uefa Champions League semi-final, second leg result:

Ajax 2-3 Tottenham

Tottenham advance on away goals rule after tie ends 3-3 on aggregate

Final: June 1, Madrid

UAE jiu-jitsu squad

Men: Hamad Nawad and Khalid Al Balushi (56kg), Omar Al Fadhli and Saeed Al Mazroui (62kg), Taleb Al Kirbi and Humaid Al Kaabi (69kg), Mohammed Al Qubaisi and Saud Al Hammadi (70kg), Khalfan Belhol and Mohammad Haitham Radhi (85kg), Faisal Al Ketbi and Zayed Al Kaabi (94kg)

Women: Wadima Al Yafei and Mahra Al Hanaei (49kg), Bashayer Al Matrooshi and Hessa Al Shamsi (62kg)

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.”

Director: Laxman Utekar

Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna

Rating: 1/5

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8 UAE companies helping families reduce their carbon footprint

Greenheart Organic Farms 

This Dubai company was one of the country’s first organic farms, set up in 2012, and it now delivers a wide array of fruits and vegetables grown regionally or in the UAE, as well as other grocery items, to both Dubai and Abu Dhabi doorsteps.

www.greenheartuae.com

Modibodi  

Founded in Australia, Modibodi is now in the UAE with waste-free, reusable underwear that eliminates the litter created by a woman’s monthly cycle, which adds up to approximately 136kgs of sanitary waste over a lifetime.

www.modibodi.ae

The Good Karma Co

From brushes made of plant fibres to eco-friendly storage solutions, this company has planet-friendly alternatives to almost everything we need, including tin foil and toothbrushes. 

www.instagram.com/thegoodkarmaco

Re:told

One Dubai boutique, Re:told, is taking second-hand garments and selling them on at a fraction of the price, helping to cut back on the hundreds of thousands of tonnes of clothes thrown into landfills each year.

www.shopretold.com

Lush

Lush provides products such as shampoo and conditioner as package-free bars with reusable tins to store. 

www.mena.lush.com

Bubble Bro 

Offering filtered, still and sparkling water on tap, Bubble Bro is attempting to ensure we don’t produce plastic or glass waste. Founded in 2017 by Adel Abu-Aysha, the company is on track to exceeding its target of saving one million bottles by the end of the year.

www.bubble-bro.com

Coethical 

This company offers refillable, eco-friendly home cleaning and hygiene products that are all biodegradable, free of chemicals and certifiably not tested on animals.

www.instagram.com/coethical

Eggs & Soldiers

This bricks-and-mortar shop and e-store, founded by a Dubai mum-of-four, is the place to go for all manner of family products – from reusable cloth diapers to organic skincare and sustainable toys.

www.eggsnsoldiers.com

MATCH INFO

Southampton 0
Manchester City 1
(Sterling 16')

Man of the match: Kevin de Bruyne (Manchester City)

THE SPECS

Engine: 4.0L twin-turbo V8

Gearbox: eight-speed automatic

Power: 571hp at 6,000rpm

Torque: 800Nm from 2,000-4,500rpm

Fuel economy, combined: 11.4L/100km

Price, base: from Dh571,000

On sale: this week

How to wear a kandura

Dos

  • Wear the right fabric for the right season and occasion 
  • Always ask for the dress code if you don’t know
  • Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work 
  • Wear 100 per cent cotton under the kandura as most fabrics are polyester

Don’ts 

  • Wear hamdania for work, always wear a ghutra and agal 
  • Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying