Dr Adil Adawy, Egyptian minister of health, lauded the UAE social development programme in Egypt, especially in the healthcare field, emphasising that the new healthcare clinics will create a shift in access for those most in need in Egypt’s rural areas. Wam
Dr Adil Adawy, Egyptian minister of health, lauded the UAE social development programme in Egypt, especially in the healthcare field, emphasising that the new healthcare clinics will create a shift inShow more

Government

UAE People & Politics: UAE and Egypt - supportive and on the same page

The relationship between the UAE and Egypt, which started with a trip to the latter by Sheikh Zayed in 1959, meant that the President would always come to Egypt's aid in its time of need.

Dr Theodore Karasik

August 06, 2015

Earlier this week, the UAE’s leaders sent messages to Egyptian president Abdel Fattah El Sisi to congratulate him on the anniversary of Egypt’s July 23, 1952 revolution.

The President, Sheikh Khalifa, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, and Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, each sent cables to Mr El Sisi to mark a day that the UAE regards as the beginning of Egypt’s modern history.

The revolution in the Arab world’s most populous country led to a rise in Arab nationalism and affected the social, political and economic mindsets of the country.

The UAE’s point man for today’s Egypt is Dr Sultan Al Jaber, Minister of State and head of the UAE/Egypt Liaison Office. He says that the UAE’s support for Egypt is firmly rooted in the conviction that the country’s stability and prosperity is critical for the region and the world.

Dr Al Jaber’s portfolio of interests makes him the right man to help Egypt redefine and energise its economy as the organisations he leads are crucial to its future.

Not only is Dr Al Jaber the chief executive of Masdar, which focuses on clean technology, renewable energy and sustainable development, but he is also chairman of Abu Dhabi Ports, chief executive of energy for Mubadala Development Company and a member of the board of trustees of the Emirates Diplomatic Academy.

Part of his goal is to take the UAE social development model to Egypt, a model that is based on the views and experiences of the UAE’s Founding Father, Sheikh Zayed.

Before he became President, Sheikh Zayed paid a visit to Egypt’s president, Gamal Abdel Nasser, in 1959.

On the trip, he secured an agreement with the Egyptian government to supply Abu Dhabi with teachers, engineers and agricultural experts.

Now, the UAE is returning the favour after Egypt’s period of instability, from 2010 to 2013, adversely affected its economy and society.

After a decades-long relationship, it was only natural that the UAE would help restore Egypt to its rightful place at the political, economic and social centre of the Arab world.

With this goal, Dr Al Jaber has set about overseeing a range of UAE projects in Egypt. Firstly, the 2013 Egyptian Gulf Investment Forum and the Egypt Economic Development Conference in Sharm El Sheikh in March were both backed by the UAE and helped raise billions of dollars for Mr El Sisi’s government reform efforts.

Second, the UAE is overseeing the rapid construction of the new Suez Canal.

The canal is critical to Egypt’s future and the project was launched by the UAE’s National Marine Dredging Company.

In addition, the NMDC is involved in efforts to set up the Suez Canal Development Zone, which will include ports, industrial parks and logistics hubs. If that sounds familiar, it should be as the establishment of such zones is part of the UAE’s exportable economic vision, which involves continuous development of areas to boost both the local economy and the UAE companies behind it.

There are now more than 600 UAE companies operating in Egypt and so this arrangement can be mutually beneficial.

As well as Dr Al Jaber’s involvement in Egypt, the Armed Forces play a major role in the two countries’ relationship.

The rise of ISIL in Sinai and its penetration of Egypt from Libya during the past two years is an issue that both countries’ forces have been working together to combat.

They train together and Abu Dhabi has been sending arms and trainers to help Cairo against threats. In Egypt’s western regions, the UAE is helping with border control and other operations.

The UAE and Egypt are also on the same page when it comes to curbing extremism and hate speech. This is where an ideological war is going on and both countries are keen to crush the terrorists’ narrative.

The anniversary of Egypt’s 1952 revolution served as an important reminder, not only of what happened then but of how the UAE and Mr El Sisi are working together for the benefit of both countries’ future generations.

newsdesk@thenational.ae

Dr Theodore Karasik is a UAE-based geopolitical analyst and commentator on UAE foreign affairs.

if you go

The flights

Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.

The hotel

Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.

The tour

Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg

Pearls on a Branch: Oral Tales
​​​​​​​Najlaa Khoury, Archipelago Books

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.”