Egyptian Foreign Minister Sameh Shoukry at a news conference with Turkish Foreign Minister Mevlut Cavusoglu in Cairo, Egypt, in March. Reuters
Egyptian Foreign Minister Sameh Shoukry at a news conference with Turkish Foreign Minister Mevlut Cavusoglu in Cairo, Egypt, in March. Reuters
Egyptian Foreign Minister Sameh Shoukry at a news conference with Turkish Foreign Minister Mevlut Cavusoglu in Cairo, Egypt, in March. Reuters
Egyptian Foreign Minister Sameh Shoukry at a news conference with Turkish Foreign Minister Mevlut Cavusoglu in Cairo, Egypt, in March. Reuters

Egypt's Foreign Minister Sameh Shoukry to visit Turkey this week


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Egypt's Foreign Minister is expected to visit Turkey later this week, Ankara announced on Monday, indicating that progress towards the reinstatement of ambassadors could be made after ties were cut a decade ago.

Turkish Foreign Minister Mevlut Cavusoglu told private broadcaster A Haber that his Egyptian counterpart Sameh Shoukry could visit this week and that more details would be released on Wednesday.

“It is time to take concrete steps,” he said. “During Mr Shoukry's visit, we can take steps to appoint ambassadors.”

Mr Cavusoglu was in Cairo last month on the first such visit since relations were severed 10 years ago following the overthrow in July 2013 of Egypt's former president and Turkey's ally Mohamed Morsi.

Mr Shoukry visited Turkey in late February to show solidarity after massive earthquakes in Turkey and Syria killed more than 50,000 people.

The Egyptian Foreign Minister said during Mr Cavusoglu's visit to Cairo last month that talks with Turkey on the possibility of restoring ambassadors would happen at the appropriate time.

Turkish Foreign Minister Mevlut Cavusoglu speaks during a press conference following talks with top Russian officials in Ankara in April. AFP
Turkish Foreign Minister Mevlut Cavusoglu speaks during a press conference following talks with top Russian officials in Ankara in April. AFP

Two rounds of exploratory talks between Egypt and Turkey on improving relations in 2021 made little progress. They were followed by a meeting last November between Egyptian President Abdel Fattah El Sisi and his Turkish counterpart Recep Tayyip Erdogan in Qatar.

The two leaders may meet again after Turkey's May 14 election, Mr Cavusoglu said.

The two countries have had a tumultuous relationship in recent years, with Mr Erdogan insisting in 2019 that he would never meet his Egyptian counterpart, after opposing the 2013 fall of the Muslim Brotherhood-backed president Mr Morsi.

The two regional powerhouses have backed rival sides in the conflict in Libya, Egypt's neighbour to the west, which has been torn by more than 10 years of civil strife.

Egypt is also opposed to what it sees as Turkey's meddling in neighbouring Syria and Iraq, and its attempts to muscle in on plans by Cairo and its allies to turn the East Mediterranean, where vast natural gas reserves have been found, into a regional energy hub.

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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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Updated: April 10, 2023, 7:41 PM