Syrian President Ahmad Al Shara at the People's Palace in Damascus. Photo: Presidency of the Syrian Arab Republic
Syrian President Ahmad Al Shara at the People's Palace in Damascus. Photo: Presidency of the Syrian Arab Republic
Syrian President Ahmad Al Shara at the People's Palace in Damascus. Photo: Presidency of the Syrian Arab Republic
Syrian President Ahmad Al Shara at the People's Palace in Damascus. Photo: Presidency of the Syrian Arab Republic

Al Shara approves temporary electoral law ahead of Syrian parliament vote


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Syrian President Ahmad Al Shara on Wednesday approved a temporary electoral law before the first parliamentary election to be held since the ousting of the former regime.

Syria was expected to hold the vote between September 15 and 20, according to the election committee but no exact date had been provided. Sources told The National on Thursday that the parliamentary election had been postponed indefinitely due to external pressure and the new authorities' lack of control over the entire country.

“They have realised that they are technically capable of holding any real elections,” a senior diplomat who was in Damascus this week said. “Pressure is also growing on them to open the system.” The National could not independently verify the claim.

The decree issued by Mr Al Shara outlines the conditions of the electoral process, the requirements for membership in parliament and the criteria for being part of the electoral committees. It also set the number of parliament members at 210, with two thirds chosen by electoral bodies and the remaining third by the President. This marks an increase from 150 members.

The head of Syria's High Elections Committee, Mohamed Al Ahmad, said the constituencies in the country had been divided into 62 districts and that proposals for membership of the electoral bodies in the newly-divided districts will begin on Thursday.

Voting for the People's Assembly should take place from September 15 to 20, Mr Al Ahmad said last month when the vote was first announced.

At the time, Mr Al Shara stressed the need of “proceeding with the electoral process in all Syrian governorates, rejecting division, which is denounced by all Syrians”.

The decision to appoint 70 members will come under intense scrutiny following Mr Al Shara's decision to appoint two of his brothers, Maher and Hazem, to senior government positions.

The vote will be the first since the fall of Bashar Al Assad's regime. Mr Al Shara, who led a former Al Qaeda offshoot, came to power in Syria after guerrilla fighters he led brought down Mr Al Assad in December after more than 13 years of civil war.

The planning for the first election under the new authorities comes after several waves of sectarian violence in Alawite and Druze areas of the country, and amid concerns of fighting in the Kurdish-held region.

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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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