Students at the American University in Cairo launched a strike on Wednesday in protest against a dramatic rise in fees.
The university, long attended by Egypt’s more affluent, requires students to pay in US dollars or their equivalent in Egyptian pounds.
Current fees to attend AUC total around $10,000 per term, which in 2021 equaled 150,000 Egyptian pounds.
Meanwhile today, following repeated devaluations, the same amount of dollars equals 300,000 Egyptian pounds.
A few students walked through the university on Wednesday afternoon holding up paper banners with slogans asking for more transparency on the university’s financial activities.
They also called on the administration to step in and ease some of the financial pressures on students.
But the strike failed to gather impetus as most the university’s students stood in the middle of its central plaza watching the strikers walk by without joining in.
Two groups on WhatsApp and Instagram organised by the strikers had a combined 2,000 members.
But only a small fraction of that number showed up, even as the strike was preceded by weeks of heated complaints from students on the university's online channels.
Drop in value of Egyptian pound
The decision to hold the strike was made on January 11, one participant told The National, when many students were shocked by headlines that the value of the local currency had dropped so far that one dollar was trading for 30 Egyptian pounds.
The pound's depreciation has left some students unable to enrol this semester, with many others transferring abroad or to more affordable local alternatives.
“There are a lot of families being negatively impacted by the rise in fees, but there’s very little the university can do," said Dr Firas Al Atraqchi, chairman of the university’s journalism department.
"The entire world is going through an economic crisis right now."
The university has repeatedly assured students that it is doing all it can to mitigate the financial burden.
"About 3,000 students — 40 per cent of the student body — do not pay full tuition," Rehab Saad, the university's spokeswoman, told The National, "They receive around $39 million annually in scholarships and financial support.
For Spring 2023, to help reduce the impact of the devaluation on our students, the university mobilised additional funds, increasing the budget by 15 per cent to reach $45 million."
This year, the university also set up an emergency tuition fund to cover some fees for students who applied before January 22.
It also said it would offer a one-time 10 per cent discount to all students who paid their fees before February 2.
Students can be eligible for more than one support mechanism, Ms Saad said.
“We recognise that all interventions will be imperfect," an email from the university to students said.
"AUC simply does not have the resources to fully mitigate the impact of the currency devaluation on all our constituents."
But several students told The National they had received no response from the university’s financial aid department about their applications.
Many said they planned to skip this term as their families tried to adjust to the worsening economic conditions.
“The university has basically stopped issuing financial aid to most students," a striker said.
"I have a friend who got $30 in financial aid after she applied. She will now be unable to attend this semester and has to find a different school."
Strikers demand more financial transparency
The small group of strikers convened outside the university’s administration building during the midday one-hour break, demanded more transparency on the university’s part with regards to “what they were doing with our money", another striker said.
They also demanded that the university remove its policy of pegging the fees to the value of the US dollar, saying most of the students are Egyptians from families who mostly earn pounds.
They originally intended to close all of the university’s classrooms and not allow students to attend lessons, but the low turnout prevented that.
The strikers' proposed a new plan for a fixed Egyptian pound-dollar exchange rate.
Seventy per cent of the fees would be collected according to the fixed exchange rate, the students said, and the other 30 per cent could be valued against the latest exchange rate.
“We proposed that they fix the exchange rate somewhere between 15 and 20 Egyptian pounds for the dollar and we are willing to negotiate on the percentages of the fees being collected,” said Hana Gad, one of the strike organisers.
At the start of their march, the small group of protesters chanted slogans directed at the administration.
But as they progressed through the campus among the hundreds of onlookers, their slogans quickly changed to attacking abstainers for their apathy.
“Why are you so quiet? Is your father a thief?” they chanted.
Prof Al Atraqchi said there were different reasons for the large-scale abstention. While some doubted that the strike would accomplish anything, others feared consequences.
“It was just badly organised. We didn’t know anything, or who was leading or anything,” one abstainer told The National.
However, a culture of class that exists among the university’s student body could have also contributed to low strike numbers, one striker pointed out.
“AUC students are known for being quite proud of going there, because it means that they come from rich families who can afford to give them the best education available,” said Farida Magdy, a student who marched with the strikers on Wednesday.
“This is why the ones whose families were able to afford the fees even after the rise didn’t participate and did not want to associate with the strikers. They think that if you can’t afford it, just leave.”
The strikers intend to continue their protest over the coming days.
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Christoph Ribbat
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Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
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Namibia v UAE Saturday Sep 16-Tuesday Sep 19
Table 1 Ireland, 89 points; 2 Afghanistan, 81; 3 Netherlands, 52; 4 Papua New Guinea, 40; 5 Hong Kong, 39; 6 Scotland, 37; 7 UAE, 27; 8 Namibia, 27
The major Hashd factions linked to Iran:
Badr Organisation: Seen as the most militarily capable faction in the Hashd. Iraqi Shiite exiles opposed to Saddam Hussein set up the group in Tehran in the early 1980s as the Badr Corps under the supervision of the Iran Revolutionary Guards Corps (IRGC). The militia exalts Iran’s Supreme Leader Ali Khamenei but intermittently cooperated with the US military.
Saraya Al Salam (Peace Brigade): Comprised of former members of the officially defunct Mahdi Army, a militia that was commanded by Iraqi cleric Moqtada Al Sadr and fought US and Iraqi government and other forces between 2004 and 2008. As part of a political overhaul aimed as casting Mr Al Sadr as a more nationalist and less sectarian figure, the cleric formed Saraya Al Salam in 2014. The group’s relations with Iran has been volatile.
Kataeb Hezbollah: The group, which is fighting on behalf of the Bashar Al Assad government in Syria, traces its origins to attacks on US forces in Iraq in 2004 and adopts a tough stance against Washington, calling the United States “the enemy of humanity”.
Asaeb Ahl Al Haq: An offshoot of the Mahdi Army active in Syria. Asaeb Ahl Al Haq’s leader Qais al Khazali was a student of Mr Al Moqtada’s late father Mohammed Sadeq Al Sadr, a prominent Shiite cleric who was killed during Saddam Hussein’s rule.
Harakat Hezbollah Al Nujaba: Formed in 2013 to fight alongside Mr Al Assad’s loyalists in Syria before joining the Hashd. The group is seen as among the most ideological and sectarian-driven Hashd militias in Syria and is the major recruiter of foreign fighters to Syria.
Saraya Al Khorasani: The ICRG formed Saraya Al Khorasani in the mid-1990s and the group is seen as the most ideologically attached to Iran among Tehran’s satellites in Iraq.
(Source: The Wilson Centre, the International Centre for the Study of Radicalisation)
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Rating: 1/5
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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.”