Opposition candidates tell of multiple obstacles



CAIRO // For the residents of Shubra Al Khaima, one of the Egyptian capital's poorest suburbs, election day was a study in contrasts.

Aatif Masaoud, a candidate for the ruling National Democratic Party and a former officer in Egypt's state security service, strode confidently behind his Mercedes-Benz through Shubra's rough-hewn streets, glancing at passers-by from behind a pair of elegant sunglasses.

He was followed moments later by a raucous mob of young men almost incapable of containing their exuberance. Amidst the mass of heads and elbows, one could barely glimpse Mohammed ElBiltagy, Shubra's incumbent parliamentarian and one of the leading members of the Muslim Brotherhood, a banned Islamist organisation that was, until recently, tolerated by the ruling regime.

"The whole Egyptian street is with us. They are tired of the corruption and dictatorship that has been practised by the NDP for the past 30 years," said Mr ElBiltagy. "But what is happening inside the polling stations has nothing to do with elections."

By noon, Mr ElBiltagy was already preparing to appeal election returns that were hours away from being counted. Of the 289 delegates Mr ElBiltagy appointed to monitor each polling station in Shubra, he claimed that all had either been denied entry or had been forced out of the voting places by the state security service.

It is a complaint that was echoed by opposition candidates and election observers throughout the country yesterday. Each candidate is guaranteed his or her own representative in each polling station. It is a system that gives them eyes in the places where corruption and voter manipulation are most likely to occur.

"The biggest problem is the prevention of delegates of candidates from entering the polling stations," said Maged Adeeb, a general director of the National Center for Human Rights, a small non-governmental organisation that was - unofficially - monitoring elections yesterday in several districts outside Cairo.

A few steps away from the cheering crowds on one of Shubra's main roads, shops were shuttered and few residents could be seen.

"People here feel afraid. This electoral process has a black history," said Mr Adeeb. "Come two days later, you'll see how many people are walking in these side streets."

Except for the children who seemed delighted to see their schools used for any other purpose, most of the afternoon's foot-traffic belonged to those brave enough to vote.

Out of the 290,000 registered voters in Shubra Al Khaima, Mr Adeeb's group had counted only about 1,100 voters by 2.30 pm - a number that he called "very, very small".

Yousuf Yaser, an independent candidate in Shubra Al Khaima who immediately acknowledged that he is "very unlikely" to win, said vote-buying was rampant yesterday.

"People are lacking political awareness. The effect here is a financial effect. Some people pay for the votes," Mr Yasser said. "The NDP candidates are mainly the ones paying for votes, but some of the independent candidates, too."

Fatima al Saidi could have cited religious devotion as the reason she cast her ballot for the Muslim Brotherhood's Mr ElBiltagy. Instead, she said she receives a monthly allowance from the Brotherhood to help cope with her daily expenses.

"He stands with us for a better life," she said. "I want to vote because I want to express my rights."

* With additional reporting by Schadi Semnani in Cairo

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It’ll be summer in the city as car show tries to move with the times

If 2008 was the year that rocked Detroit, 2019 will be when Motor City gives its annual car extravaganza a revamp that aims to move with the times.

A major change is that this week's North American International Auto Show will be the last to be held in January, after which the event will switch to June.

The new date, organisers said, will allow exhibitors to move vehicles and activities outside the Cobo Center's halls and into other city venues, unencumbered by cold January weather, exemplified this week by snow and ice.

In a market in which trends can easily be outpaced beyond one event, the need to do so was probably exacerbated by the decision of Germany's big three carmakers – BMW, Mercedes-Benz and Audi – to skip the auto show this year.

The show has long allowed car enthusiasts to sit behind the wheel of the latest models at the start of the calendar year but a more fluid car market in an online world has made sales less seasonal.

Similarly, everyday technology seems to be catching up on those whose job it is to get behind microphones and try and tempt the visiting public into making a purchase.

Although sparkly announcers clasp iPads and outline the technical gadgetry hidden beneath bonnets, people's obsession with their own smartphones often appeared to offer a more tempting distraction.

“It's maddening,” said one such worker at Nissan's stand.

The absence of some pizzazz, as well as top marques, was also noted by patrons.

“It looks like there are a few less cars this year,” one annual attendee said of this year's exhibitors.

“I can't help but think it's easier to stay at home than to brave the snow and come here.”

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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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Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.