Syria's referendum on new constitution



BEIRUT // Syrians voted in a referendum on a new constitution which President Bashar Al Assad said would pave the way for a multi-party parliamentary election within three months. Here are some of the main points of the new constitution:

Political parties

It drops a clause that effectively granted Mr Al Assad's Baath Party a monopoly on power by styling it as the "leading party in the society and the state". Several new parties have already been licensed, but the new text forbids political activity or parties based on "religious, sectarian, tribal [or] regional" basis, which would prevent the Muslim Brotherhood registering, and also restrict parties representing minority Kurds.

Presidential Powers

Real power remains with the president, who "lays down the general policy of the state and oversees its implementation", can declare war or a state of emergency, can draft laws and assumes legislative authority when parliament is not sitting.

Presidential Terms

The president is limited to two seven-year terms. Mr Al Assad's second term expires in 2014. However, another clause in the constitution says laws will not apply retroactively, implying Mr Al Assad could serve another two terms until 2028.

Running For President

It allows for a contested presidential election, rather than a vote to approve a single candidate. The seven presidential elections since 1971 had only had one name on the ballot paper: Mr Al Assad - first Hafez and then his son Bashar. A presidential hopeful must have the support of 35 members of parliament and must be at least 40-years-old, a requirement which was circumvented when Mr Bashar inherited power on his father's death in 2000. The president must have lived in Syria for 10 years, a requirement which would rule out many of Mr Assad's opponents who have lived in exile for years.

Religion

The state respects all religions, but the constitution retains a requirement for the president to be a Muslim and says Islamic law is a major source of legislation - alienating minority Christians, many of whom have steered clear of the revolt against Mr Al Assad.

Economy

It drops a clause that describes Syria as a "planned socialist economy". Instead, the economy "shall be based developing public and private economic activity through economic and social plans aimed at increasing the national income, developing production, raising the individual's living standards and creating jobs".

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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.

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