Iran's new president, Masoud Pezeshkian, during a Tehran meeting with Egyptian Foreign Minister Badr Abdelatty. The two sides vowed to continue a raprochment after decades of strained relations. Photo Credits: The Iranian Presidency.
Iran's new president, Masoud Pezeshkian, during a Tehran meeting with Egyptian Foreign Minister Badr Abdelatty. The two sides vowed to continue a raprochment after decades of strained relations. Photo Credits: The Iranian Presidency.
Iran's new president, Masoud Pezeshkian, during a Tehran meeting with Egyptian Foreign Minister Badr Abdelatty. The two sides vowed to continue a raprochment after decades of strained relations. Photo Credits: The Iranian Presidency.
Iran's new president, Masoud Pezeshkian, during a Tehran meeting with Egyptian Foreign Minister Badr Abdelatty. The two sides vowed to continue a raprochment after decades of strained relations. Photo

Egypt and Iran take another step towards normalisation after high-level Tehran meeting


Kamal Tabikha
  • English
  • Arabic

Egypt's Foreign Minister Badr Abdelatty met Iran's new President Masoud Pezeshkian on the sidelines of his inauguration ceremony, marking the latest indication of Cairo and Tehran warming ties, a continuation of a process that began under the former Iranian leader.

The trip, which included a meeting with Mr Pezeshkian and Iran's acting Foreign Minister, Ali Bagheri Kani, is the latest move in warming ties between the two countries which have been strained for decades.

After meeting Mr Abdelatty, the Iranian president described Iran and Egypt as “two brotherly countries” whose nations have a “heartfelt affection” for each other.

He also expressed hope that the obstacles to the normalisation process would be completely resolved “as soon as possible”.

“Iran and Egypt can resolve many regional problems through co-operation with each other,” Mr Pezeshkian said, adding that the Islamic Republic of Iran is “ready to co-operate and exchange experiences, capabilities, and mutual capacities with Egypt”.

Mr Abdelatty praised the smooth transition of power to Mr Pezeshkian after his predecessor Ebrahim Raisi, under whose leadership the rapprochement with Cairo was initiated, died in a helicopter crash in May.

“We are deeply pleased that Iran was able to pass through the transition period after the martyrdom of Dr. Raisi with authority and without any problems,” Mr Abdelatty said, according to an Iranian presidency statement on the meeting that took place on the sideline of the inauguration.

Mr Abdelatty also underscored Egypt's commitment to continued good relations with Iran under Mr Pezeshkian's leadership.

Egypt and Iran have a complex history, with periods of co-operation interrupted by episodes of tension and hostility. The two nations severed diplomatic ties in 1979, following Iran's Islamic Revolution, and have since maintained a cautious distance.

However, in recent months, there have been several indications of a shift in the relationship with Mr Abdelatty's predecessor, Sameh Shoukry, holding several high-level meetings with his then Iranian foreign minister Hossein Amirabdollahian, who died in the same crash as Mr Raisi in May.

Last year, Egypt and Iran announced plans to exchange ambassadors, a move seen as a significant step towards restoring full diplomatic relations.

Additionally, a November meeting between Egyptian President Abdel Fattah El-Sisi and Mr Raisi in Riyadh was hailed as a major breakthrough in the normalisation process.

Mr Shoukry and Mr Abdollahian also met multiple times, including at the UN General Assembly last September and more recently in Gambia on the sidelines of a summit for the Organisation of Islamic Cooperation held weeks before the crash.

Statements issued after the meetings said that both sides were exploring how to increase bilateral and regional co-operation.

Mr Raisi's and Mr Abdollahian's deaths raised concerns that the normalisation process could suffer setbacks, sources with direct knowledge of the process told The National the day after the helicopter crash.

Cairo views the meeting between Mr Pezeshkian and Mr Abdelatty as a significant step towards the normalisation process, according to the Egyptian Foreign Ministry.

The two nations have competing interests in the Middle East, particularly in the areas of energy and security.

However, in recent years, Egypt has been seeking to diversify its foreign policy, and a rapprochement with Iran could provide a new avenue for co-operation.

In July last year, Egypt's Tourism Minister Ahmed Issa met the Iranian tourism minister to discuss ways to boost tourism between the two countries. The meeting was seen as a significant step towards increasing “people-to-people exchanges and promoting cultural understanding”, the Egyptian tourism ministry said.

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Indoor cricket in a nutshell
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Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.

Zones

A Front net, behind the striker and wicketkeeper: 0 runs
B Side nets, between the striker and halfway down the pitch: 1 run
C Side nets between halfway and the bowlers end: 2 runs
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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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