CAIRO // Islamist protesters face an imminent crackdown after high-level international attempts to resolve Egypt's political stand-off collapsed yesterday.
"Diplomatic efforts ended today," the office of president Adly Mansour said after more two weeks of efforts by diplomats from the the UAE, Qatar, the United States, Europe and the African Union to bridge the gap between the interim government and the Islamist regime that preceded it.
"The state gave room for all necessary efforts to be exhausted in order to urge the Muslim Brotherhood and its supporters to reject violence, prevent bloodshed and cease the disruption of Egyptian society by holding its future hostage," it said.
Sheikh Abdullah bin Zayed, who led the UAE mediation team as Foreign Minister, thanked Mr Mansour and his government for its cooperation with international diplomats in seeking an end to the political crisis.
"The group sought through its work over the past few days to end the sit-in, this being an element of tension and posing a danger to public safety and community peace. The group was also keen to restore normal life to Egypt," Sheikh Abdullah said.
Egypt's prime minister Hazem Al Beblawi went on television to declare that two large sit-ins in Cairo squares by supporters of the deposed president Mohammed Morsi would be cleared.
"The decision to disperse the Rabaa Al Adaweya and Nahda sit-ins is a final decision," he said. "There is no going back on it."
The wording was similar to an announcement last week ordering the interior ministry to break up the without giving a time frame, but added to a growing sense that the Islamist-led rallies would be forcefully broken up soon.
More than 130 people have been killed in the past month, mostly protesters, in clashes between the Islamist demonstrators and interior ministry forces and soldiers. Many protesters say they will die rather than leave the sit-in before Mr Morsi is reinstated.
A leading Brotherhood figure, Mohammed El Beltagy, said the protesters were not concerned by renewed threats to remove them.
"What we care about is for there to be clear talks about our position against the military coup and the importance of returning legitimacy," Mr El Beltagy said at the main protest site in the capital's Nasr City neighbourhood.
Brotherhood officials have insisted they will not negotiate with the new authorities until Mr Morsi is reinstated. Since he is being investigated on charges of espionage and collusion with the Palestinian group Hamas, and other Brotherhood leaders are charged with killing protesters, this seems unlikely.
With hopes of an internationally-mediated reconciliation fading, the leading Islamic centre Al Azhar called for talks on the crisis after the Eid holiday, raising the prospect of a national dialogue session rather than one helped by foreign facilitators.
"There are some initiatives that can be built on to start national reconciliation," an Al Azhar official said.
A spokesman for the EU envoy Catherine Ashton, who met Mr Morsi in the secret location where he is being held and has encouraged participation from all Egypt's political factions in talks, said the EU was concerned.
"The EU is urging all political groups to find a peaceful solution to the current stalemate. We are present on the ground talking to all sides."
The US deputy secretary of state Willam Burns left Egypt yesterday after meetings with government officials and the Islamist opposition since August 2.
Egypt's attitude to the US, both officially and among the public, has grown increasingly ambivalent.
American officials have determined that the military removal of Mr Morsi was not a coup, and on Tuesday the defence minister Gen Abdel Fattah El Sisi spoke to his American counterpart Chuck Hagel.
Gen El Sisi, "thanked Secretary Hagel for US support and ongoing diplomatic efforts to prevent further violence, calm tensions, and facilitate an inclusive dialogue to pave the way forward for transition to a democratically elected civilian government", according to an American statement.
But in a recent interview with the Washington Post, Gen Sisi accused the US of turning its back on the Egyptian people, and on Tuesday American senators John McCain and Lindsey Graham responded by saying there had been a military coup.
Supporters of Mr Morsi have also condemned the US, and said that it along with other nations supported the military removal of Mr Morsi.
afordham@thenational.ae
* Additional reporting by the Associated Press
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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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