Egypt and Iran have been holding talks in Iraq's capital Baghdad since March to discuss normalising relations between the two regional powerhouses, Egyptian and Iraqi officials told The National.
The latest round of discussions began at the weekend, Egyptian officials said, although it is not clear how much progress has been made so far.
The talks have also touched on reducing tension in places where Iran wields significant influence, such as Yemen, Lebanon and Syria, by supporting allied governments or armed groups, according to the officials, who spoke on condition of anonymity because the negotiations have not been made public.
The two sides are also exploring the possibility of a meeting between Egyptian President Abdel Fattah El Sisi and Iranian leader Ebrahim Raisi, they said.
The talks in Baghdad appear to be part of a continuing regional realignment in which Saudi Arabia and Iran agreed to restore diplomatic relations severed in 2016.
Egypt and Turkey, at odds for a decade, have also been working to normalise relations.
The eight-year war in Yemen, where Iran backs the Houthis against the internationally recognised government supported by a Saudi-led military coalition, has significantly quietened down amid diplomatic moves to end the conflict.
Syria, where Iran and the Tehran-backed Lebanese group Hezbollah have significant influence, was readmitted to the Arab League on Sunday, more than a decade after it was thrown out of the Cairo-based group over its violent handling of anti-government protests in 2011.
In Baghdad, an Iraqi diplomat told The National that two rounds of low-level talks between Egyptian and Iranian officials were held in Baghdad in March and April this year.
“Both sides have welcomed Iraq’s efforts to mediate,” said the diplomat.
“Both sides are putting out feelers and they are willing to move forward. There is no headway until now.”
News of the secret negotiations has emerged two months after Iran said it wanted to improve ties with Egypt.
"Egypt is an important country in the region and what the region needs is synergy between Iran and Egypt, and we believe in taking new steps to improve our relations,” Iranian Foreign Ministry spokesman Nasser Kanaani said in March, just days after Tehran and Riyadh said they agreed to resume diplomatic relations.
Egypt's presidency and Foreign Ministry had welcomed the Saudi-Iranian agreement, saying they hoped it would result in defusing regional tensions.
Tehran's relations with Cairo, a close US ally that has close ties with Saudi Arabia and other Gulf nations, have been fraught since the ousting of Iran's shah Mohammad Reza Pahlavi in the 1979 Islamic revolution.
The shah died in 1980 in Egypt, where he is buried with other members of his family.
Relations deteriorated when Iran's clerical government named a Tehran street after Khaled Al Islambouli, an Egyptian army officer who led a team of assassins that killed Mr Sadat during a 1981 military parade in Cairo. Repeated requests by Cairo to remove his name were denied.
More recently, relations have been tense over what Cairo sees as the meddling of Iran in the internal affairs of Arab nations such as Iraq, Syria, Lebanon and Yemen.
In a thinly veiled reference to Iran, Mr El Sisi's government has repeatedly declared Egypt's willingness to come to the aid of its Gulf Arab allies and benefactors if they faced an external threat.
Unlike Saudi Arabia, which closed its embassy in Tehran in 2016, Egypt has maintained diplomatic representation in Iran since the Islamic revolution.
However, it has left only a charge d'affaires running its mission in Tehran. Iran has a functioning embassy in Cairo led by a senior diplomat.
Egyptian officials familiar with Cairo's relations with Iran say the two countries have maintained sporadic contact over the years.
Like Saudi Arabia, Egypt is a regional heavyweight. While the kingdom is home to Islam's holiest shrines, Cairo's 1,000-year-old Al Azhar Mosque is considered the world's primary seat of Sunni Islam learning.
Egypt is also the most populous Arab state, with more than 104 million people.
Sinan Mahmoud reported from Baghdad
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Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
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 biog
Favourite films: Casablanca and Lawrence of Arabia
Favourite books: Start with Why by Simon Sinek and Good to be Great by Jim Collins
Favourite dish: Grilled fish
Inspiration: Sheikh Zayed's visionary leadership taught me to embrace new challenges.
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
SERIES INFO
Afghanistan v Zimbabwe, Abu Dhabi Sunshine Series
All matches at the Zayed Cricket Stadium, Abu Dhabi
Test series
1st Test: Zimbabwe beat Afghanistan by 10 wickets
2nd Test: Wednesday, 10 March – Sunday, 14 March
Play starts at 9.30am
T20 series
1st T20I: Wednesday, 17 March
2nd T20I: Friday, 19 March
3rd T20I: Saturday, 20 March
TV
Supporters in the UAE can watch the matches on the Rabbithole channel on YouTube
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Profile
Company name: Marefa Digital
Based: Dubai Multi Commodities Centre
Number of employees: seven
Sector: e-learning
Funding stage: Pre-seed funding of Dh1.5m in 2017 and an initial seed round of Dh2m in 2019
Investors: Friends and family
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5