Ahmed Tantawy during a press conference in Cairo in October last year. Reuters
Ahmed Tantawy during a press conference in Cairo in October last year. Reuters
Ahmed Tantawy during a press conference in Cairo in October last year. Reuters
Ahmed Tantawy during a press conference in Cairo in October last year. Reuters

Former Egyptian presidential hopeful gets a year in prison and five-year election ban


Kamal Tabikha
  • English
  • Arabic

A Cairo misdemeanour court has sentenced former presidential candidate and prominent opposition parliamentarian Ahmed Tantawy, his campaign manager Mohamed Aboul Dyar and 21 campaign staff to a year in prison, court officials told The National.

Although the court suspended the sentence for Tantawy – who has also been banned from running for parliament for five years – and Dyar in exchange for 20,000 Egyptian pounds ($600) each in bail, the remaining defendants will serve one year with hard labour, the officials said.

Egyptian President Abdel Fattah El Sisi won a third term in the December election.

Tantawy was charged in November with illegally circulating election materials to his supporters after dozens of them said that they were barred from entering Egypt’s notary offices to file their endorsements of his candidacy. He needed 25,000 endorsements to secure a place on the ticket.

The former parliamentarian, who heads the Nasserite Al Karama party, withdrew his bid for the presidency in October after failing to secure the necessary support.

In several controversial campaign speeches delivered outside notary offices in Egypt, Tantawy repeatedly accused his would-be opponent of abusing his power to prevent viable opponents from running.

An election commission convened by Mr El Sisi denied Tantawy’s claims and said that numerous investigations proved that there was no foul play. The commission’s findings were largely contrary to several social media testimonials from his supporters and accusations against the state from prominent opposition figures.

To sidestep what he called “corrupt practices” on the state’s part, Tantawy printed endorsement forms and circulated them to his supporters to fill out, which is illegal, according to an article in the country’s election law, court officials said.

The defendants were arrested in possession of more than 500 of the forged forms, officials said.

The shop owner who printed the forms has also been arrested, they said.

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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.”

Updated: February 07, 2024, 4:00 PM