CAIRO // Egypt pushed back on Saturday against international suspicions that a bomb caused a Russian plane to crash in the Sinai, killing 224 people, as investigators said its cause was still unknown.
Initial observations from the cockpit voice recorder on the Airbus A321 were made public amid intensifying restrictions on air travel that threatened to cripple Egypt’s vital tourism industry.
In the Red Sea resort of Sharm El Sheikh, from where the airliner took off on October 31, thousands of Russian and British tourists waited for word of when they could fly home.
In Cairo, the Egyptian head of the technical investigation committee told reporters the cause of the crash was still not known.
“Initial observations do not allow for identifying the origin of the in-flight break-up” of the aircraft 23 minutes and 14 seconds after it departed Sharm El Sheikh, Ayman El Mokkadem said. “A noise was heard in the last second” of the cockpit voice recorder data.
“A spectral analysis will be carried out to identify the nature of this sound.”
On Friday, Moscow halted all Russian flights to Egypt, while London has stopped British flights to Sharm. Empty aircraft are being sent out to bring stranded holidaymakers home but the process will be slow. Russia will send 44 planes to repatriate its nationals, the Russian Federal Air Transport Agency said. Eleven British aircraft are on standby in Cyprus to help in the airlift.
Sources in France close to the investigation said black box data pointed to a bomb exploding.
David Cameron, the British prime minister, has said a bomb “had more likely than not” been the cause of the disaster.
Egypt’s foreign minister Sameh Shoukry said on Saturday that the inquiry had yet to establish any firm theory.
And he said foreign intelligence that had triggered the international travel restrictions had not been shared with Cairo.
“We expected that any technical information should have been shared with us, at a technical level, before publicising it in the media,” he said.
Egypt is heavily reliant on tourism and feared the effect on the industry of any firm determination that a bomb caused the crash.
Russians comprise the bulk of tourists who visit Red Sea resorts such as Sharm El Sheikh each year. Nearly 80,000 are in Egypt, a Russian official said.
Russia followed Britain in saying that holidaymakers would return home without hold luggage, which would be sent separately.
That restriction has prompted Egypt to limit the number of daily repatriation flights because it said there is only so much baggage left behind that its airports can accommodate.
“It’s going to be a long wait,” said tourist Maria Chernova.
“I have to fly out today at any cost. My son is getting married tomorrow,” said Jane Kelly.
The extremist group ISIL said it downed the plane in retaliation for Russian air strikes in Syria but has not said how.
* Agence France-Presse
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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.”