CAIRO // Egypt is bracing for mass protests today, backed by the Muslim Brotherhood whose candidate has claimed a presidential vote victory, against the ruling military's move to claim sweeping new powers.
The demonstration, called for by several of the groups that participated in the February 2011 uprising, comes after the military reclaimed legislative power following a court ruling dissolving the Islamist-led parliament.
The move, which came in a constitutional declaration that also saw the ruling military council claim the ability to veto articles in any new constitution, has overshadowed the country's presidential poll.
But uncertainty also reigns over the winner of that vote, with Mohammed Morsi, the Muslim Brotherhood candidate, claiming an early victory, while his rival, ex-prime minister Ahmed Shafiq has refused to concede.
A confirmed win for Mr Morsi would mark the first time the Islamists have taken the presidency of the Arab world's most populous nation.
But Mr Shafiq's campaign has accused the Brotherhood of trying to steal victory, calling their claim of a win an "act of piracy" and urging people to wait for the official results expected on Thursday.
Egypt's state media reported that initial counts showed Mr Morsi ahead.
"After the counting was finished in all of Egypt's 27 provinces, indications show that Mohammed Morsi has won 51 per cent and Ahmed Shafiq won 49 per cent," the state-owned Al Ahram newspaper said on its website.
There were scenes of jubilation at Mr Morsi's Cairo headquarters, where the candidate thanked voters and pledged to work "hand-in-hand with all Egyptians for a better future, freedom, democracy, development and peace."
"We are not seeking vengeance or to settle accounts," he said, adding that he would build a "modern, democratic state" for all Egyptians, Muslims and Christians alike.
Shafiq campaign officials refused to concede victory, saying their figures showed their man was ahead.
"It's a stolen victory because you can't claim to have won a presidential election while the polling stations are still closing," Mr Shafiq's campaign manager Ahmed Sarhan said.
"It's an act of piracy to claim victory using totally false figures," he said, adding that preliminary results obtained by the campaign showed Mr Shafiq "still ahead in the vote, with between 51 and 52 per cent."
Whoever is declared the winner, the country faces the prospect of a looming showdown between the Brotherhood and the ruling military.
"The Brotherhood and the military council prepare for the battle of the parliament," the headline of the liberal Wafd newspaper read today.
The Brotherhood insists the parliament still has the power to legislate and said yesterday that it would take part in "all popular activities against the constitutional coup and the dissolution of parliament, beginning on Tuesday."
The ruling military body, the Supreme Council of Armed Forces, has introduced de facto martial law, given itself control of the legislature and state budget and also granted itself veto power on a new constitution.
Revolutionary youth movements, which had been split over whether to boycott the election or to vote Mr Shafiq out, denounced the declaration as a "coup."
"The military council, with its unconstitutional coup, gave itself [unprecedented] powers. The military council has never and will never recognise popular legitimacy that contradicts it," the Coalition of Revolution Youth said in a statement.
The Brotherhood has vowed to challenge the constitutional declaration, even as it also faces a lawsuit challenging its legitimacy and legal status.
The military yesterday sought to quieten fears over the declaration, insisting it will transfer power to the new president on schedule by the end of this month.
The election victor will swear his oath before the constitutional court by "June 30, this month," Mamduh Shahin, one of the ruling generals, told a news conference Monday.
Another Scaf general, Mohammed Al Assar, said the vote winner will enjoy full presidential powers.
"The president of the republic will be vested with all the powers of the president of the republic," Mr Al Assar.
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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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Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
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