Egypt's stability is in the interest of all parties



The Port Said football violence encapsulates much of the uncertainty of Egypt's post-revolution crisis. Last February, fighting between supporters of Cairo's Al Ahly and Port Said's Al Masry clubs escalated into one of the worst nights of bloodshed in Egypt's tumultuous past two years.

The visiting Al Ahly fans appeared to have been targeted by an organised assault, possibly with the complicity of the security personnel who turned a blind eye. There are many unanswered questions. Was this just an extreme example of fan violence? Or were authorities, then headed by the Supreme Council of the Armed Forces, seeking revenge against Al Ahly fans who had participated in anti-government protests?

The death sentence brought against 21 people on Saturday signally failed to provide satisfactory answers, although Al Ahly supporters who had been baying for blood did celebrate. On the one hand, many believed the verdict was deeply political, targeting Al Masry supporters to appease protesters. At the same time, the capital sentences spared security officials and police, leading others to presume that the investigation had been superficial at best, deliberately deceptive at worst.

Egyptians have little faith in the institutions of this postrevolutionary order. In part, that can be blamed on the periodic outbursts of violence - at least 40 were killed over the weekend, in protests marking the second anniversary of the revolution and in the Port Said riots after the verdict. But equally to blame is a failure of leadership, in which political skirmishing has eclipsed national interests.

Many blame President Mohammed Morsi and his Muslim Brotherhood allies. Their refusal to compromise has raised justifiable fears for Egypt's supposedly representative democracy. And, at the end of the day, the government must take responsibility for security lapses that happen during its watch - as long as the generals don't try to take power again.

Given the sense of insecurity, not to mention the abysmal economic situation, the opposition National Salvation Front may have a persuasive case to make that Mr Morsi has failed in the job. And yet the NSF can't stay focused on the task at hand - at the height of violence on Saturday, the opposition announced that it would boycott parliamentary elections later this year unless its demands are met. Even NSF supporters must be frustrated at this unhelpful lack of direction.

The opposition - and the government, for that matter - must realise that there are priorities that transcend their rivalries. Ending the violence on the streets has to be paramount. The opposition has to contest the next elections, not play politics as blood runs in the streets.

Prophets of Rage

(Fantasy Records)

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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Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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Name: Kumulus Water
 
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Stars: Dr Ghassan Abu-Sittah

Rating: 4/5

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Zidane's managerial achievements

La Liga: 2016/17
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Uefa Champions League: 2015/16, 2016/17, 2017/18
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Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea

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