The leaders of the UAE, Egypt, Bahrain, Jordan and Iraq have gathered on Egypt’s Mediterranean coast for a summit that has been hailed as an opportunity to enhance inter-Arab partnerships.
President Sheikh Mohamed arrived in the coastal city of New Alamein on Sunday, where he and Egyptian President Abdel Fattah El Sisi were joined on Monday by Bahrain's King Hamad, Jordan's King Abdullah II and Iraqi Prime Minister Mustafa Al Kadhimi.
The five leaders informally met on Monday, when they “exchanged views on ways to strengthen bilateral relations and co-operation” between their countries, the Egyptian presidency said.
They also attended a ceremony on Monday night to inaugurate a large seaside resort in New Alamein, celebrated by a huge fireworks display.
Tuesday's meeting comes at a time when many Arab nations — including Egypt and Jordan — are struggling to cope with the economic impact of the Russia-Ukraine war.
The conflict, involving two of the world's biggest grain producers, has caused food and energy prices to rise steeply.
Diplomatic sources familiar with the agenda of Tuesday’s meeting said the leaders would also review economic co-operation and consider national security, as well as regional and international issues.
Blue Nile dam on agenda
Egypt's state-owned Al Ahram daily, citing a diplomatic source, said a dispute pitting Egypt and Sudan against Ethiopia over its nearly completed dam on the Blue Nile would also be up for discussion in Tuesday's meeting.
The $4.2 billion Grand Ethiopian Renaissance Dam, set to be the largest hydroelectric project in Africa, has been at the centre of a regional dispute since Ethiopia broke ground on the project in 2011. Egypt and Sudan want Ethiopia to enter a legally binding agreement on the operation and filling of the dam. Addis Ababa has rejected their demand, arguing that guidelines should suffice.
The wars in Yemen, Syria and Libya, as well as the Israel-Palestinian conflict, are also on the agenda, the Egyptian daily said.
Iraq was the only country among the original five summit participants that does not recognize Israel.
Egypt made peace with Israel in 1979, Jordan signed a peace treaty in 1994, and the UAE and Bahrain normalised ties with it in 2020.
Time for 'serious joint Arab action'
“This summit gives Arab citizens a dose of optimism that the time has come for serious joint Arab action,” said Egyptian political analyst and retired diplomat Mustafa Al Fiqi.
Egypt's former assistant foreign minister Mohamed Hegazy, now a political commentator, said the summit “offers a glimpse of hope to Arab nations because it aims to reach Arab solutions for the crises besetting the region”.
A significant level of co-operation among the five nations is already in place.
Last month, Bahrain joined the Industrial Partnership for Sustainable Economic Development that had previously comprised the UAE, Egypt and Jordan.
The agreement boosts the industrial manufacturing value add of the informal alliance to more than $112.5 billion.
The partnership aims to establish large joint industrial projects, create job opportunities, contribute to a growth in economic output, diversify the economies of the partner countries, support industrial production and boost exports, said officials.
President Sheikh Mohamed with Abdel Fattah El Sisi in Egypt — in pictures
Separately, Egypt’s vastly expanded power generation capacity has allowed it to export electricity to Jordan. Extending its grid to cover Iraq is also under consideration.
The UAE has provided Egypt with billions of dollars in central bank deposits and investments to help mitigate the impact of its ambitious reform programme and, most recently, the fallout from the Ukraine war.
New Alamein, where the leaders are meeting, is one of about a dozen cities built since Mr El Sisi took office eight years ago. Located west of Alexandria, it is defined by its seafront tower blocks.
Tuesday’s summit will take place a short distance away from the site of joint war games involving commando units from the UAE and Egypt, underlining the growing military co-operation between the allies.
Aston martin DBX specs
Engine: 4.0-litre twin-turbo V8
Transmission: nine-speed automatic
Power: 542bhp
Torque: 700Nm
Top speed: 291kph
Price: Dh848,000
On sale: Q2, 2020
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
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.”
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Rebel%20Moon%20-%20Part%20One%3A%20A%20Child%20of%20Fire
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EZack%20Snyder%3Cbr%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3ESofia%20Boutella%2C%20Djimon%20Hounsou%2C%20Ed%20Skrein%2C%20Michiel%20Huisman%2C%20Charlie%20Hunnam%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2%2F5%3C%2Fp%3E%0A