Egypt votes as opposition boycotts poll


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Egypt went to the polls today for second-round runoffs in a parliamentary election that President Hosni Mubarak's party is poised to win almost unopposed in the face of an opposition boycott.

At one polling station in Cairo shortly after polls opened at 8am (6am GMT), police outnumbered the few voters waiting to cast their ballots, a photographer reported.

Egypt's two main opposition blocs, the Muslim Brotherhood and the liberal Wafd party, withdrew from the race after official results from last Sunday's first round gave the ruling National Democratic Party 90 per cent of the seats decided outright.

The conduct of the election drew criticism from human rights watchdogs which fielded observers and also from key Egyptian ally the United States.

The opposition boycott of the second round leaves the ruling party with 383 candidates to compete mostly against rivals from within the same party for the remaining 283 seats.

The Muslim Brotherhood, the only serious opposition force, did not win a single seat in the first round. The group held a fifth of the seats in the outgoing parliament, fielding its candidates as independents to get round a ban on religious parties.

The Brotherhood's decision to pull out its remaining 27 candidates from the second round marked its first boycott of an election since the 1990s, although it has complained of fraud in every election in which it has taken part.

The Wafd party, which usually has working ties with the government, won two seats in the first round. In a rare display of resolve for the fractured party, it announced that it too would pull its candidates out of the second round.

Three other parties which each won a seat last week decided to keep their candidates in the race.

There are also 167 independent candidates on the ballots, according to the electoral commission, but that included the 27 Brotherhood members.

Analysts said the NDP appeared to have overplayed its hand by virtually wiping out the opposition, strengthening the impression of Egypt as a one-party state.

Egypt's veteran president appoints 10 lawmakers in addition to the 508 elected members of parliament. Most of those seats are also expected to go to the ruling party.

"The pullout of the opposition adds to the legitimacy crisis. It means the opposition are no longer buying into the system. The damage done to the NDP is huge," said Amr Hamzawi of the Carnegie Endowment for International Peace.

The ruling party insists the election has been free and argues that support for the Islamists in particular was exaggerated, according to its own opinion polls.

But human rights groups say they gathered evidence of fraud and vote-buying in the first round, after a campaign which already made it very difficult for the NDP's opponents to win seats.

Police arrested more than 1,000 Brotherhood supporters in the runup to the vote, drawing a protest from Washington, which usually avoids mention of the Islamists in its rare criticism of Cairo.

Brotherhood candidates faced restrictions while campaigning, and at least 11 of the group's supporters have been sentenced to two-year jail terms for distributing its campaign literature.

The vote is seen as a possible indication of Egypt's far more important presidential poll due in late 2011. Mubarak, 82, has yet to announce whether he will stand and is widely believed to be grooming his son Gamal for succession.

The near absence of opposition parties in parliament means whoever stands for the NDP in the presidential election will have almost no competition, a scenario which could raise questions over the president's legitimacy.

Independent candidates for the presidency need parliamentary approval, while party candidates require a minimum representation in parliament.

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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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Key findings of Jenkins report
  • Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
  • Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
  • Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
  • Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
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1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

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Bantamweight
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Welterweight
Amir Boureslan bt Mahmoud Zanouny
Featherweight
Mohammed Al Katheeri bt Abrorbek Madaminbekov
Super featherweight
Ibrahem Bilal bt Emad Arafa
Middleweight
Ahmed Abdolaziz bt Imad Essassi
Bantamweight (female)
Ilham Bourakkadi bt Milena Martinou
Welterweight
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Son 78'

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Getting there

Etihad (Etihad.com), Emirates (emirates.com) and Air France (www.airfrance.com) fly to Paris’ Charles de Gaulle Airport, from Abu Dhabi and Dubai respectively. Return flights cost from around Dh3,785. It takes about 40 minutes to get from Paris to Compiègne by train, with return tickets costing €19. The Glade of the Armistice is 6.6km east of the railway station.

Staying there

On a handsome, tree-lined street near the Chateau’s park, La Parenthèse du Rond Royal (laparenthesedurondroyal.com) offers spacious b&b accommodation with thoughtful design touches. Lots of natural woods, old fashioned travelling trunks as decoration and multi-nozzle showers are part of the look, while there are free bikes for those who want to cycle to the glade. Prices start at €120 a night.

More information: musee-armistice-14-18.fr ; compiegne-tourisme.fr; uk.france.fr

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Red card: Jack Stephens (Southampton)

Man of the match: Rob Holding (Arsenal)

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