Egypt’s president Abdel Fattah El Sisi addresses the country on the first anniversary of mass protests that led to the removal of his predecesor. Egyptian Presidency / AFP / June 30, 2014
Egypt’s president Abdel Fattah El Sisi addresses the country on the first anniversary of mass protests that led to the removal of his predecesor. Egyptian Presidency / AFP / June 30, 2014

One year on, El Sisi tackles problems left by predecessor



CAIRO // A year after ousting Egypt’s Islamist leader, Abdel Fattah El Sisi is sitting in his place at Cairo’s Ittihadya Palace barely a month into his four-year term as president.

Mr El Sisi has said becoming president was not what he had in mind when he removed Mohammed Morsi on July 3 last year, but rather he wanted to prevent Egypt from descending into civil war. He sought the job, he said, because Egyptians wanted him to lead the nation and it was his duty to answer the people’s call.

Now that he has the most important job in the country, Mr El Sisi has serious challenges to deal with and a population with extremely high expectations.

“It is not a secret how tough the economic and security challenges the nation is facing are,” he said in a televised address to mark the anniversary of the mass protests on June 30 last year to demand that Mohammed Morsi step down.

“I have accepted the mission and will not, by God’s will, accept anything but success,” he said. “Let us all realise that the responsibility is heavy, the challenges are grave, but you must also realise that success is not impossible.”

A career infantry officer, Mr El Sisi has consistently shown Egyptians “tough love” since back in the days when he was campaigning for office. “Don’t expect me to do everything myself ... I don’t have a magic wand,” he said in a series of TV interviews. “You must wake up early, walk to work if you can and work hard.”

A week ago, he set an example for Egyptians with deep pockets, saying that he was donating half his salary as president to the treasury along with half the assets he had inherited from his father, who owned a furniture business in Cairo’s old quarter.

Mr El Sisi’s focus on the economy is understandable, given the enormity of Egypt’s financial woes, but it will take more than the kindness of wealthy Egyptians to put it right.

Removing fuel subsidies – which cost the treasury US$20 billion (Dh73.5bn) a year – tops the list of painful and potentially destabilising measures Mr El Sisi must quickly take to free much-needed funds for the cash-strapped education and health sectors .

But it is a risky gamble. Past attempts to reduce subsidies have triggered unrest, something that Mr El Sisi would like to avoid given the already shaky security situation in the country.

However, the government of prime minister Ibrahim Mahlab is determined to go ahead with lifting the subsidies, a move that was expected to come into force this week, but was put off until after Ramadan.

Mr El Sisi has given a two-year timeline for signs of economic recovery, but has said these will only emerge if everyone does their part.

A genuine recovery will also require a dramatic improvement in the country’s security situation.

Islamist militants have for years been waging a war of attrition against security forces in the Sinai Peninsula, but they stepped up their attacks after Mr Morsi’s removal a year ago and extended their area of operations into much of mainland Egypt. Lately, the frequency of attacks in Sinai, as well as high-profile attacks such as car bombings and execution-style killings of policemen and troops, has been significantly lower.

In their place, Egypt is now witnessing targeted killings of senior police officers and attacks on vital installations or services that make up for lower casualties with the greater the panic they spread.

Last week, four near-simultaneous explosions at subway stations in Cairo injured three people and caused widespread panic among morning commuters. They were the first attacks in Egypt since Mr El Sisi’s was elected.

On Monday, three homemade bombs went off only metres from the presidential palace in Cairo’s Heliopolis suburb, killing two police officers and injuring 10 other people.

The bombings were significant in that they happened in the heart of a heavily policed area that is also monitored round the clock by security cameras. They also showed the inefficiency of the police in one of the nation’s most security sensitive areas. The two police officers who died were trying to defuse the bombs without protective gear. The militant group that claimed responsibility for the attacks on Tuesday issued a statement days before the bombs went off saying they had planted them outside the palace, but the police apparently did not feel the need to find and defuse them.

Mr El Sisi vowed to swiftly bring to justice those responsible for the bombings. A day later, he met senior police and security agency officials and, according to people briefed on the meeting, he was furious.

“This will not do,” the officials quoted him as saying. “I will not allow anyone to threaten this country.”

foreign.desk@thenational.ae

Citadel: Honey Bunny first episode

Directors: Raj & DK

Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon

Rating: 4/5

Kanguva
Director: Siva
Stars: Suriya, Bobby Deol, Disha Patani, Yogi Babu, Redin Kingsley
Rating: 2/5
 
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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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Distance covered: 160km

Temperature: -40°C

Weight of equipment: 45kg

Altitude (metres above sea level): 0

Terrain: Ice rock

South Pole stats

Distance covered: 130km

Temperature: -50°C

Weight of equipment: 50kg

Altitude (metres above sea level): 3,300

Terrain: Flat ice
 

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Rating: 3.5/5

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Date started: 2018

Founders: Charaf El Mansouri, Nisma Benani, Leah Howe

Based: Abu Dhabi

Sector: TravelTech

Funding stage: Pre-series A 

Investors: Convivialite Ventures, BY Partners, Shorooq Partners, L& Ventures, Flat6Labs

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This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
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