CAIRO // Egypt's military rulers have decided to invite the country's political opposition into the cabinet for the first time in decades, the official state news agency reported yesterday as the new government played host to an impromptu visit by the British prime minister.
David Cameron flew in for a surprise visit, becoming the first head of state to meet Egypt's new rulers.
Mr Cameron came to shore up commercial ties with Egypt and urge the the military council to stick to its promised democratic reforms, his office said in a statement.
But the move to invite opposition leaders into the military-led transition will not placate protesters who are demanding that it fully dismantle the regime of former president Hosni Mubarak, a protest leader said.
The partial cabinet reshuffle, expected to be confirmed by official announcement today, illustrates the tightrope act the Supreme Council of the Armed Forces faces as it tries to maintain the stability and the continuity of Egypt's governmental bureaucracy while mollifying youth protesters and labour activists who have pressed their demands with disruptive street rallies.
Protesters filled Cairo's Tahrir square on Friday to celebrate the ouster of Mr Mubarak and demand the immediate dismissal of his cabinet appointees who remain in office. They said they will return each Friday for huge rallies until their demands are met.
Military leaders appeared to heed their calls in part yesterday, saying they would name Yehya al Gamal, a prominent legal expert and critic of Mr Mubarak, to the vacant post of deputy prime minister, and Mounir Abdel Nour, the secretary general of the liberal Wafd party, to the post of minister of tourism, MENA news reported.
Mr al Gamal, the former head of the Supreme Constitutional Court, has served as a leader in the National Association for Change, the reform group championed by Mohammed el Baradei, the pro-democracy activist.
Mr al Gamal could not be reached for comment yesterday, but said in an interview last week that he supported an overtly secular government for Egypt and backed the military's decision to move gradually on constitutional reform during the next six months.
The military also scrapped the post of information minister and named opposition figures to head the ministries of education, culture, immigration and scientific research.
It stopped short, however, of replacing the ministers of interior, justice and foreign affairs, and the prime minister himself, which prompted immediate criticism from protest leaders.
Youth protesters would return to Tahrir Friday to voice their displeasure, said Yasser el Hawary, a spokesman for the Youth for Justice and Freedom, a major protest group.
"It's good, but not good enough," he said. "We will not be happy if anyone from the ruling National Democratic Party is still in the government, and we would like to remove [prime minister] Ahmed Shafiq."
Protesters were willing to wait six months for reforms to the constitution and free elections, which they knew would take time, he said. But they were not willing to wait for the dismissal of Mr Mubarak's cabinet appointees and the release of demonstrators arrested since protests began on January 25, Mr Hawary said.
Protesters have also pushed for legal investigations into alleged cases of corruption during Mr Mubarak's regime.
Egypt's prosecutor general, Abdel Magid Mahmud, yesterday formally requested, through the ministry of foreign affairs, that foreign governments freeze Mr Mubarak's assets, MENA reported. The prosecutor had received reports alleging Mr Mubarak maintained a fortune outside of the country, "which necessitates an investigation", according to a judicial source quoted by the news agency.
The Egyptian press has been full of reports alleging a massive overseas fortune controlled by Mr Mubarak and his family worth tens of billions of dollars.
An unnamed legal adviser to Mr Mubarak dismissed the reports yesterday, calling them "a groundless rumour" in remarks published by MENA.
Egypt's new government also yesterday hosted its first visits by foreign leaders since Mr Mubarak's ouster on February 11.
Mr Cameron's visit was described as "something of a gamble" by a senior diplomat in London yesterday.
"It has been less than two weeks since Mubarak went and the military council took over, and it still remains to be seen if they make good on their promise on free elections and a rapid transition to democratic rule," he said.
"The UK government sees this as an opportunity to encourage the military council towards that speedy, democratic solution. But it is something of a gamble because the visit might be seen as legitimising the current regime."
William Burns, the US undersecretary of state for political affairs, also arrived yesterday for talks with Egyptian military officials.
cstanton@thenational.ae
* Additional reporting by David Sapsted in London
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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.
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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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Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
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How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
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Young women have more “financial grit”, but fall behind on investing
In an October survey of young adults aged 16 to 25, Charles Schwab found young women are more driven to reach financial independence than young men (67 per cent versus. 58 per cent). They are more likely to take on extra work to make ends meet and see more value than men in creating a plan to achieve their financial goals. Yet, despite all these good ‘first’ measures, they are investing and saving less than young men – falling early into the financial gender gap.
While the women surveyed report spending 36 per cent less than men, they have far less savings than men ($1,267 versus $2,000) – a nearly 60 per cent difference.
In addition, twice as many young men as women say they would invest spare cash, and almost twice as many young men as women report having investment accounts (though most young adults do not invest at all).
“Despite their good intentions, young women start to fall behind their male counterparts in savings and investing early on in life,” said Carrie Schwab-Pomerantz, senior vice president, Charles Schwab. “They start off showing a strong financial planning mindset, but there is still room for further education when it comes to managing their day-to-day finances.”
Ms Schwab-Pomerantz says parents should be conveying the same messages to boys and girls about money, but should tailor those conversations based on the individual and gender.
"Our study shows that while boys are spending more than girls, they also are saving more. Have open and honest conversations with your daughters about the wage and savings gap," she said. "Teach kids about the importance of investing – especially girls, who as we see in this study, aren’t investing as much. Part of being financially prepared is learning to make the most of your money, and that means investing early and consistently."
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