Egyptian Foreign Minister Sameh Shoukry, right, meets Turkish Foreign Minister Mevlut Cavusoglu at the Ministry of Foreign Affairs in Cairo on March 18. EPA
Egyptian Foreign Minister Sameh Shoukry, right, meets Turkish Foreign Minister Mevlut Cavusoglu at the Ministry of Foreign Affairs in Cairo on March 18. EPA
Egyptian Foreign Minister Sameh Shoukry, right, meets Turkish Foreign Minister Mevlut Cavusoglu at the Ministry of Foreign Affairs in Cairo on March 18. EPA
Egyptian Foreign Minister Sameh Shoukry, right, meets Turkish Foreign Minister Mevlut Cavusoglu at the Ministry of Foreign Affairs in Cairo on March 18. EPA

Turkey to normalise Egypt relations 'step by step', says foreign minister during visit


Hamza Hendawi
  • English
  • Arabic

Egypt and Turkey will move forward “step by step” to end a decade-long rift, Turkish Foreign Minister Mevlut Cavusoglu, on a milestone visit to Cairo, said after talks with his Egyptian counterpart.

Egypt's Foreign Minister Sameh Shoukry said relations would be normalised “at the appropriate time.” He was speaking at a joint news conference after talks with Mr Cavusoglu, the first Turkish foreign minister to visit Egypt in 10 years.

The pair were upbeat about the future of relations between the two regional powers, but did not say how much, if any, progress they made on issues such as Turkey's military presence in Libya, an issue of particular concern to Cairo, and Ankara's involvement in Syria and Iraq.

“I'm very glad that we are taking steps for normalising relations with Egypt. We will do our best not to rupture our ties again in future,” Mr Cavusoglu said.

“We will, over a short period of time, develop our diplomatic relations step by step. There is a genuine and sincere political will to develop these relations.

“We will co-ordinate a meeting soon (between President Abdel Fattah El Sisi and Turkish President Recep Tayyip Erdogan). That meeting can take place before or after the elections,” Mr Cavusoglu said, alluding to Turkey's presidential elections scheduled for May 14.

Mr Shoukry's comments were more cautious.

“We will come to talks (on restoring ambassadors) at the appropriate time, depending on the positive results it brings,” he said.

After a decade fraught with tension, the normalisation of ties is expected to take time given the complexity and number of differences between the two nations.

These include the 2013 removal by Egypt’s military, then led by Mr El Sisi, of Turkish-backed Islamist president Mohammed Morsi amid street protests against his divisive rule, according to Egyptian officials.

Egypt and Turkey held two rounds of exploratory talks in 2021 to normalise relations.

Those made little headway, but a November meeting between the Egyptian and Turkish leaders in Qatar appears to have given the process a major boost.

Bringing the two countries closer was Mr El Sisi calling the Turkish president last month to offer his condolences on the death of tens of thousands in the February 6 earthquake and later a visit to earthquake-stricken areas in Turkey by Mr Shoukry.

A Turkish-Egyptian rapprochement could be part of a rapidly changing Middle East diplomatic landscape, with the region’s leading Arab and non-Arab powers stepping back from confrontations to try to settle their differences.

Turkish Foreign Minister Mevlut Cavusoglu meets with his Egyptian counterpart Sameh Shoukry in Cairo. Reuters
Turkish Foreign Minister Mevlut Cavusoglu meets with his Egyptian counterpart Sameh Shoukry in Cairo. Reuters

Ankara has also been seeking to repair ties with the UAE and Saudi Arabia. Also, Saudi Arabia and Iran announced last week they are restoring diplomatic ties severed since 2016.

Cairo, according to the Egyptian officials, has stepped up behind-the-scenes contacts with Tehran in recent months with a view to normalise relations that have been fraught since the Islamic revolution in 1979.

Mr Shoukry told reporters that he and his Turkish counterpart discussed the Palestinian-Israeli conflict, Syria, Libya and Iraq, as well as the impact on the region of last week's agreement by Saudi Arabia and Iran.

“We discussed how we can jointly deal with common challenges like terrorism and achieving stability in general,” he said.

Bolstering economic ties and encouraging investments were also discussed, said Mr Shoukry, who put the volume of annual bilateral trade at $9 billion and Turkish investments in Egypt at another $2.5 billion.

Cairo and Ankara support rival sides in Libya, a North African and energy-rich nation that has been wracked by violence and political instability since a popular uprising in 2011 toppled and killed long-time dictator Muammar Qaddafi.

Egypt, which shares a desert border with Libya, is demanding that Turkey withdraws military advisers it has sent to Libya to support the Tripoli-based government during fighting against eastern forces led by a Cairo ally, Field-Marshall Khalifa Haftar.

Egypt also opposes a maritime demarcation deal reached between Ankara and Tripoli last year that Egypt and its regional allies have said is illegal. In response, Egypt last year unilaterally set its maritime border with Libya in the Mediterranean.

Egypt, Greece and Cyprus see Turkey’s deployment of a drilling ship in the eastern Mediterranean as a challenge to their marine rights. AFP
Egypt, Greece and Cyprus see Turkey’s deployment of a drilling ship in the eastern Mediterranean as a challenge to their marine rights. AFP

Egypt is also seeking Turkey’s backing for, or at least neutrality on, international diplomatic efforts to end the North African nation’s decade-long schism between its eastern and western regions.

Turkey and Egypt will also have to defuse tensions in the east Mediterranean, where Egypt, Cyprus and Israel have found significant natural gas reserves in recent years and, together with other regional partners, are turning the area into a major regional energy centre.

Turkey has repeatedly sought to muscle in on the enterprise with illegal drilling, only to be reprimanded by the EU and US.

Cyprus and Greece, two close Egyptian allies, are at sharp odds with Turkey, which has occupied the northern part of Cyprus since 1974. Greece and Turkey have long-standing differences over maritime rights in the Aegean Sea.

Egypt is also opposed to what it sees as Turkey's interference in neighbouring Syria and Iraq.

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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Chelsea 4 

Jorginho (4 pen, 71 pen), Azpilicueta (63), James (74)

Ajax 4

Abraham (2 og), Promes (20). Kepa (35 og), van de Beek (55) 

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1987

1954

1921

1888

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Engine: 5.2-litre V10

Power: 640hp at 8,000rpm

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Transmission: 7-speed dual-clutch auto

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Director: Goran Hugo Olsson

Rating: 5/5

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Directed by: Joseph Kosinski

 

Starring: Tom Cruise, Val Kilmer, Jennifer Connelly, Jon Hamm, Miles Teller, Glen Powell, Ed Harris

 
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Engine: 77.4kW all-wheel-drive dual motor
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Your rights as an employee

The government has taken an increasingly tough line against companies that fail to pay employees on time. Three years ago, the Cabinet passed a decree allowing the government to halt the granting of work permits to companies with wage backlogs.

The new measures passed by the Cabinet in 2016 were an update to the Wage Protection System, which is in place to track whether a company pays its employees on time or not.

If wages are 10 days late, the new measures kick in and the company is alerted it is in breach of labour rules. If wages remain unpaid for a total of 16 days, the authorities can cancel work permits, effectively shutting off operations. Fines of up to Dh5,000 per unpaid employee follow after 60 days.

Despite those measures, late payments remain an issue, particularly in the construction sector. Smaller contractors, such as electrical, plumbing and fit-out businesses, often blame the bigger companies that hire them for wages being late.

The authorities have urged employees to report their companies at the labour ministry or Tawafuq service centres — there are 15 in Abu Dhabi.

MATCH INFO

Juventus 1 (Dybala 45')

Lazio 3 (Alberto 16', Lulic 73', Cataldi 90 4')

Red card: Rodrigo Bentancur (Juventus)

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Starring: Sarah Geronimo, James Reid, Xian Lim, Nova Villa

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(Tagalog with Eng/Ar subtitles)

Updated: March 18, 2023, 2:17 PM