India and Egypt are almost unrecognisable from the nations they were when Gamal Abdel Nasser and Jawaharla Nehru got together with Yugoslavia’s Tito to establish the Non-Aligned Movement at the height of the Cold War in the 1950s.
Those were days of lofty ideals, fervent rhetoric and populism in a blossoming post-colonial era for both. Memories remain of an era of a shifting global landscape; a time when Cold War non-combatants such as Egypt, India and Yugoslavia wanted to stand and be counted in a world struggling to heal the scars of the Second World War while rocked by the waning of European colonialism.
With Yugoslavia no more, what endures to this day is the special relationship between Egypt and India.
Egyptian President Abdel Fattah El Sisi is travelling to New Delhi this week to be the chief guest at India’s Republic Day celebrations and to commemorate with Indian leaders the 75th anniversary of the establishment of diplomatic relations between Cairo and Delhi.
It would be Mr El Sisi’s third visit to India since the former army general took the reins in the most populous Arab nation in 2014, but his most significant by far given the giant leaps made by the two countries in cementing and expanding their relationship.
Indian Prime Minister Narendra Modi last visited Cairo in August 2015.
"It is a momentous occasion for both countries that will undoubtedly herald a new dawn in our bilateral relations,” India’s ambassador to Egypt, Ajit Gupte, said during an early national day celebration in Cairo last weekend. “As the world faces new threats, it is imperative that the [two] countries come closer to realise a sustainable solution.”
A multi-faceted relationship
The volume of bilateral trade rose from $4.55 billion in 2018-19 to $7.26 billion in 2021-22, making India the third-largest export market for Egypt and its sixth-largest trade partner, according to Indian government figures.
Indian investment in Egypt is also sizeable at $3.15 billion, with 50 Indian companies actively present in Egypt in sectors like manufacturing, chemicals, energy, infrastructure and retail.
In the wider geopolitical context, Mr El Sisi’s visit comes at a time when India's co-operation with Egypt and its Gulf allies is needed to deal with the potentially destabilising rivalry in west Asia and over the vital shipping lanes of the Indian Ocean and Arabian and Red Seas.
A potentially more proactive role by India in the region would be a reflection of its, and Egypt’s, historical weight and relevance, according to Foreign Minister S. Jaishankar.
“We are both civilization states. We have a tradition of thinking beyond our narrow national interests. We have always been interested in the world, and we have again, a history of working together, in that regard,” he said in Cairo last October.
Already, naval and air units from Egypt and India have been conducting joint war games and negotiations over the sale of Indian-made Tejas light combat aircraft to Egypt have been in progress for months.
The two militaries are also bound by a co-operation memorandum of understanding signed during a visit to Cairo last September by Defence Minister Shri Rajnath. The Indian minister discussed enhancing military cooperation with Egypt when he met Mr El Sisi and his counterpart Gen Mohammed Zaki during the visit.
A joint Egyptian-Indian defence committee has since its 2006 inception met nine times.
Cairo and Delhi also share intelligence and coordinate on counterterrorism, according to Egyptian security officials. Military co-production or the sale by India of anti-aircraft weapons systems, drones and armoured vehicles were expected to be on the agenda during the Egyptian leader’s talks in New Delhi, said the officials, who spoke on condition of anonymity.
“We expect a significant deal on military co-production to be reached when the president is in Delhi. The focus of the agreement will be fighter jets and drones as well as warships,” said one of the officials.
A deal on joint military coproduction would be a revival of sorts of similar enterprises undertaken by the two nations in the 1950s and 1960s.
Procuring Indian weapons, moreover, would form part of an Egyptian drive launched by Mr El Sisi to diversify the country’s sources of arms, complementing its large arsenal of modern US weapons with hardware from countries like Germany, Russia, Italy and France.
Cairo has also been seeking to secure the transfer of military technology through licenses to locally manufacture parts of the weapon systems it imports. It has also invested in developing its nascent arms industry.
“As Arab states are becoming more influential on the world stage … they are looking for bilateral relations with other powers – chief among them India,” Mohammed Soliman of the Middle East Institute in Washington said in an interview published this month in the Indian Narrative.
“For Arab capitals, India is a capable nuclear power, on the verge of overtaking China as the world’s most populous nation and the fifth largest economy in the world … This makes India a natural ally during this time of global disorder,” he said, referring in other segments of the interview to the revival of what he called the Cairo-Delhi axis.
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Scoreline
Saudi Arabia 1-0 Japan
Saudi Arabia Al Muwallad 63’
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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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Day 3, Dubai Test: At a glance
Moment of the day Lahiru Gamage, the Sri Lanka pace bowler, has had to play a lot of cricket to earn a shot at the top level. The 29-year-old debutant first played a first-class game 11 years ago. His first Test wicket was one to savour, bowling Pakistan opener Shan Masood through the gate. It set the rot in motion for Pakistan’s batting.
Stat of the day – 73 Haris Sohail took 73 balls to hit a boundary. Which is a peculiar quirk, given the aggressive intent he showed from the off. Pakistan’s batsmen were implored to attack Rangana Herath after their implosion against his left-arm spin in Abu Dhabi. Haris did his best to oblige, smacking the second ball he faced for a huge straight six.
The verdict One year ago, when Pakistan played their first day-night Test at this ground, they held a 222-run lead over West Indies on first innings. The away side still pushed their hosts relatively close on the final night. With the opposite almost exactly the case this time around, Pakistan still have to hope they can salvage a win from somewhere.
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
LAST-16 FIXTURES
Sunday, January 20
3pm: Jordan v Vietnam at Al Maktoum Stadium, Dubai
6pm: Thailand v China at Hazza bin Zayed Stadium, Al Ain
9pm: Iran v Oman at Mohamed bin Zayed Stadium, Abu Dhabi
Monday, January 21
3pm: Japan v Saudi Arabia at Sharjah Stadium
6pm: Australia v Uzbekistan at Khalifa bin Zayed Stadium, Al Ain
9pm: UAE v Kyrgyzstan at Zayed Sports City Stadium, Abu Dhabi
Tuesday, January 22
5pm: South Korea v Bahrain at Rashid Stadium, Dubai
8pm: Qatar v Iraq at Al Nahyan Stadium, Abu Dhabi
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5