French President Emmanuel Macron delivers a speech at the Moroccan parliament in Rabat on Tuesday. EPA
French President Emmanuel Macron delivers a speech at the Moroccan parliament in Rabat on Tuesday. EPA
French President Emmanuel Macron delivers a speech at the Moroccan parliament in Rabat on Tuesday. EPA
French President Emmanuel Macron delivers a speech at the Moroccan parliament in Rabat on Tuesday. EPA

Morocco’s sovereignty is only ‘present and future’ for Sahara region, says Macron


Ghaya Ben Mbarek
  • English
  • Arabic

President Emmanuel Macron reiterated France’s recognition of Morocco’s sovereignty over the Sahara region as he addressed the country’s parliament in Rabat on Tuesday, stating that this was the only framework for the territory’s “present and future”.

Mr Macron, who is in Morocco for a three-day state visit, expressed his country’s full support to a plan Morocco presented to the UN Security Council in 2007 to allow the region to enjoy autonomy under its sovereign rule. Under this plan, the region would have its own parliament and manage its budget, while Rabat would maintain overall sovereignty and control over defence and foreign relations. The region would retain the Moroccan flag, national anthem and currency.

“Autonomy under Moroccan sovereignty is the framework within which this issue must be resolved and the 2007 autonomy plan is the only basis for achieving a just and lasting solution,” Mr Macron said after receiving a standing ovation from MPs for his first public statement regarding the Sahara question.

Mr Macron stressed that France’s position stemmed from a belief in solutions that “respect reality and promote the future”.

In July, the French President cleared all previous ambiguity over France’s position in a letter to Morocco's King Mohammed VI on the anniversary of his coronation. He expressed his support for the kingdom’s plan and road map to end the decades-long dispute over the region.

Morocco's King Mohammed VI speaks to France's President Emmanuel Macron during a ceremony at the royal palace in Rabat on Monday. AFP
Morocco's King Mohammed VI speaks to France's President Emmanuel Macron during a ceremony at the royal palace in Rabat on Monday. AFP

France's position was not well received by Morocco’s neighbour Algeria, which withdrew its ambassador from Paris after calling it “unexpected, unsuccessful and un-useful”.

Algeria has rejected Moroccan sovereignty over the Sahara region.

France has tried to preserve ties with both its former colonies and maintain an even stance towards them. However, relations with Algeria have remained difficult since it gained independence in 1962 due to its continuing calls for France to apologise and pay reparations for more than a century of colonial rule.

Rejecting Algeria’s accusations, Mr Macron has maintained that France’s stance on the region cannot be interpreted as a display of hostility towards any party.

“This position is the one that France will implement to support Morocco in international bodies and I say it here, that this position is not hostile to anyone,” he told the Moroccan parliament.

“It allows us to open a new page between us and all those who want to act in a framework of regional co-operation in the Mediterranean, with Morocco’s neighbouring countries and with the European Union.”

Mr Macron also promised that France would commit itself to the development of the region through investments and sustainable initiatives that would benefit the local population.

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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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Updated: October 29, 2024, 4:42 PM