Activist denies backing Mubarak


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CAIRO // A leading rights activist noted for opposing the hereditary succession of power in Egypt denied yesterday that he had abandoned his principles and backed Gamal Mubarak for the presidency. Saad Eddin Ibrahim insisted he signed a petition saying that the president Hosni Mubarak's son has the right to seek the presidency in 2011 "as a matter of principle", not as an endorsement of his candidacy. Mr Ibrahim, a well-known sociologist and rights activist, met Magdi el Kordi, the head of the Popular Coalition to Support Gamal Mubarak for Presidential Elections, on Sunday.

He was photographed signing the petition, which asks Mr Mubarak to run in 2011 "for the sake of political, economic and social reform and in order for the people to rule themselves". Opponents accuse Mr Ibrahim of abandoning his principles. "Saad has harmed his reputation and undermined his credibility," said George Ishaq, a leader with the National Association for Change, headed by Mohamed ElBaradei, also a possible presidential candidate. "Why did he sell out and give up all his history in a minute? To come back and live in Egypt? It's pathetic."

But Mr Ibrahim denied that he was endorsing Mr Mubarak, 46, for president. "I signed for Gamal's right to nominate himself in all innocence … I signed in support of Gamal's right to run as an Egyptian citizen, as a matter of principle," Mr Ibrahim said yesterday before returning to the United States, where he teaches at Harvard University. However, Mr el Kordi said yesterday: "Saad Eddin Ibrahim signed a petition calling for Gamal Mubarak to become president. There is no misunderstanding about that. It's a great victory for our campaign to win someone like Saad." In response, Mr Ibrahim's Ibn Khaldoun Centre for Development Studies in Cairo issued a statement accusing Mr el Kordi's coalition of "misleading public opinion".

"How could any sensible person believe that I'm so naive to support a person who didn't announce his candidacy, didn't reveal his platform, beside the fact that he has limited, almost lacking executive practical experience?" Mr Ibrahim said in the statement. Mr Ibrahim, 71, warned in a series of articles in 2000 that the Egyptian republic risked reverting to a monarchy if Mr Mubarak were to succeed his father. The articles coincided with Mr Mubarak's return to Egypt that year after working in London as a banker. Once he returned to Egypt, he rose swiftly in the ranks of the ruling National Democratic Party (NDP), which is headed by his 82-year-old father. After the critical articles were published, Mr Ibrahim was arrested and charged with embezzlement and tarnishing Egypt's image. He was released from prison in March 2003. His treatment has strained the relationship between Egypt and the United States. Mr Ibrahim is married to an American and has US citizenship. Mr Ibrahim's problems with the regime began in 1994 when authorities banned a conference at his Ibn Khaldoun centre dealing with the status of Egypt's Christians. Shortly after that, he visited Israel, thereby triggering a media campaign against him for being a "normaliser". Mr el Kordi started his Mubarak-for-president campaign by plastering posters of him throughout the country last month. He also started collecting signatures for a petition supporting Mr Mubarak two weeks ago. He said he has collected 100,000 signatures so far. Hosni Mubarak has not announced yet whether he will run in 2011 and Gamal Mubarak has not commented on the race. The NDP has said it has nothing to do with Mr el Kordi's campaign. nmagd@thenational.ae

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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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