'I'm battling against ingrained cynicism but we will prevail'



Mahmoud Mohieldin, the face of Egyptian economic reform, is wrapping up another day on the ramparts of capitalism. He has just spent an hour with leftist political leaders explaining his latest inspiration, an investment plan to give citizens equity in public-sector companies. It was a tough concept to sell. Egyptians have never much warmed to privatisation and the plan has been condemned by conspiracy theorists as a back-door way of selling the country's prized assets to rich businessmen using the people's money. The meeting ended convivially enough, although Dr Mohieldin acknowledges it will take time to win over civic leaders. It is nearly midnight as he leaves his office in central Cairo, which at even this late hour is snarled with traffic. "This is new, so people are naturally wondering what the government's motive is in all this," Dr Mohieldin says as he and his small coterie head for the Nile Hilton, where he will convene his next meeting. "We Egyptians are a very suspicious crowd." The most dogged among Cairo's fraternity of reformers - in 2007 the World Bank named him its "top global reformer", the second time he has made the bank's top 10 list - Dr Mohieldin, 43, who is Egypt's minister for investment, has spent the past decade preaching the gospel of neo-liberalism to a nation of sceptics. The collapse of Wall Street and the global credit crunch has not made his job any easier. During a panel session at a conference jointly hosted last autumn by the International Monetary Fund and the World Bank in Washington, he responded sharply to an attendee's remark about how emerging markets such as Egypt would escape the worst of the crisis because it had "no Lehman Brothers" to worry about. "Oh no?" Dr Mohieldin replied. "Let me tell you, I have brothers in the street, brothers who are poor, brothers who can't find jobs." It was typical of a man whose capitalist drive is tempered by a populist touch. "Mahmoud understands political interactions," says Mohammed el Erian, who participated in the session as the head of US-based Pimco, the world's largest bond investor, and who studied with Dr Mohieldin at England's Warwick University in the late 1980s. "He can get his view across either in a soft or aggressive way. I have seen him persuade people and I have seen him stand up to them." In the four years since Ahmed Nazif, the Egyptian prime minister, formed a new government with an aggressive reform agenda, Dr Mohieldin and his fellow neo-liberals have reduced trade barriers, deregulated the Egyptian pound, modernised the banking sector and attracted a more-than-sixfold increase in foreign direct investment. Dr Mohieldin has personally managed one of the Arab world's largest transfers of public assets, from textile mills to telephone grids, into private hands. Now, he is overhauling Egypt's debt markets, which lack the depth and product diversity needed to exploit the country's growing reservoir of wealth. Egypt's total credit level is just 35 per cent of its GDP. The Egyptian economy grew by 7.2 per cent in the year to June 30, 2008, and while inflation rose sharply - peaking at 25 per cent - due to the spike in global commodity prices, the country's unemployment rate has dipped to 8.3 per cent this year from 11.5 per cent four years ago. Though the government has revised downwards its growth outlook for this year to 6 per cent, it shows no sign of slowing the pace of reform. Over the past few months, both the nation's president, Hosni Mubarak, and his son Gamal, the chairman of the ruling party's powerful policies committee, have emphasised the need for continued liberalisation. Such a high-level endorsement is vindication for Dr Mohieldin, who began promoting free-market capitalism 15 years ago, first as an academic at Cairo University and later as a ministerial adviser. As Egypt continued to stagnate economically, Dr Mohieldin's arguments began to resonate among increasingly influential members of the regime. That includes Gamal Mubarak, 45, the godfather of Egypt's neo-liberal transformation and his father's likely successor. It was alongside the younger Mubarak that Dr Mohieldin unveiled his stock distribution plan, the one that has so many Egyptians in such an uproar. It took Dr Mohieldin and his administrative team three years to map out the plan, which will allocate all Egyptians aged 21 years and older shares in a portfolio of listed companies. The objective, he says, is to broaden ownership of listed equity in the country while giving citizens a sense of ownership propriety over corporate Egypt. If Egyptians have been slow to embrace this vision, it is largely because the results from four years of dramatic change are inconclusive. On paper at least, deregulation has been a success. The economy is growing at its fastest rate in years. Consumer goods, from fresh fruit to affordable cars, are available in a country that was for years quarantined from the global economy by the economic nationalism of the former president Gamal Abdel Nasser. But the dividends have yet to reach Egypt's long-diminishing middle class. While liberal economists call for patience, opposition politicians and internet commentators say reform has only widened the gulf between rich and poor while creating fertile ground for corruption, particularly those businessmen with contacts among the country's political elite. "Regardless of the cosmetics of growth, the people are living a tragedy," says Mohammed Habib, the first deputy chairman of the influential Muslim Brotherhood. "We are suffering a crisis of corruption and tyranny. We see banks and companies that are being looted. One hears over and over again that the regime is plundering the country." While the government's reform agenda is deeply unpopular, its architect is a well-known and genuinely popular minister - something of an oddity in Egypt. Despite their mistrust of the capitalist system's invisible hand, Egyptians are quick to offer theirs when they encounter the stocky and ebullient Dr Mohieldin as he travels across the country. Ever the college professor, he seems to delight in taking on one opponent after another, armed with thick binders filled with charts and graphs, to vanquish old orthodoxies. It is not lost on middle-class Egyptians, points out Mr el Erian, that Dr Mohieldin still lectures at Cairo University rather than the more prestigious, but less "Egyptian", American University in Cairo. And unlike his cabinet-level colleagues, Dr Mohieldin is happy to walk from one appointment to the next, with only a single bodyguard following several paces behind him. "Mahmoud's heart is in the right place and the people know and like him," says Angus Blair, head of research at Beltone Financial, a Cairo-based investment bank. "How many other cabinet members do you see walking about the streets?" After his late-night meetings, Dr Mohieldin faces another day promoting his stock allocation plan. He has appointments scheduled with the liberal-nationalist New Wafd Party and he will meet the editors of independent newspapers including Al Masri Al Youm. At each meeting he faces people who have spoken or written critically of his vision of a capitalist Egypt. He will be criticised, and he will listen patiently before explaining his position. In the Egypt of today, this is the closest thing to consensus-driven politics and Dr Mohieldin, who says his only political ambition is to "survive the present", is clearly enjoying it. "I'm battling against ingrained cynicism but we will prevail," he says, wrapping up his meeting at the Nile Hilton. "It is the challenge and tension that keeps me together." Stephen Glain is a business columnist for The National and the author of Mullahs, Merchants and Militants: The economic collapse of the Arab World sglain@thenational.ae

Company%20Profile
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ADCC AFC Women’s Champions League Group A fixtures

October 3: v Wuhan Jiangda Women’s FC
October 6: v Hyundai Steel Red Angels Women’s FC
October 9: v Sabah FA

WHAT IS A BLACK HOLE?

1. Black holes are objects whose gravity is so strong not even light can escape their pull

2. They can be created when massive stars collapse under their own weight

3. Large black holes can also be formed when smaller ones collide and merge

4. The biggest black holes lurk at the centre of many galaxies, including our own

5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed

Golden Shoe top five (as of March 1):

Harry Kane, Tottenham, Premier League, 24 goals, 48 points
Edinson Cavani, PSG, Ligue 1, 24 goals, 48 points
Ciro Immobile, Lazio, Serie A, 23 goals, 46 points
Mohamed Salah, Liverpool, Premier League, 23 goals, 46 points
Lionel Messi, Barcelona, La Liga, 22 goals, 44 points

Moon Music

Artist: Coldplay

Label: Parlophone/Atlantic

Number of tracks: 10

Rating: 3/5

ACL Elite (West) - fixtures

Monday, Sept 30

Al Sadd v Esteghlal (8pm)
Persepolis v Pakhtakor (8pm)
Al Wasl v Al Ahli (8pm)
Al Nassr v Al Rayyan (10pm)

Tuesday, Oct 1
Al Hilal v Al Shorta (10pm)
Al Gharafa v Al Ain (10pm)

Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
Director: Venkat Prabhu
Rating: 2/5
COMPANY PROFILE
Name: Airev
Started: September 2023
Founder: Muhammad Khalid
Based: Abu Dhabi
Sector: Generative AI
Initial investment: Undisclosed
Investment stage: Series A
Investors: Core42
Current number of staff: 47
 
COMPANY%20PROFILE%20
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Haltia.ai%0D%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202023%0D%3Cbr%3E%3Cstrong%3ECo-founders%3A%3C%2Fstrong%3E%20Arto%20Bendiken%20and%20Talal%20Thabet%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%0D%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20AI%0D%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2041%0D%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20About%20%241.7%20million%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Self%2C%20family%20and%20friends%26nbsp%3B%3C%2Fp%3E%0A
Joker: Folie a Deux

Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson

Director: Todd Phillips 

Rating: 2/5

The National in Davos

We are bringing you the inside story from the World Economic Forum's Annual Meeting in Davos, a gathering of hundreds of world leaders, top executives and billionaires.

COMPANY%20PROFILE
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EA Sports FC 25
How to wear a kandura

Dos

  • Wear the right fabric for the right season and occasion 
  • Always ask for the dress code if you don’t know
  • Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work 
  • Wear 100 per cent cotton under the kandura as most fabrics are polyester

Don’ts 

  • Wear hamdania for work, always wear a ghutra and agal 
  • Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Which honey takes your fancy?

Al Ghaf Honey

The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year

Sidr Honey

The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest

Samar Honey

The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments

RESULTS

5pm Wathba Stallions Cup Maiden (PA) Dh70,000 (Dirt) 1,400m

Winner Munfared, Fernando Jara (jockey), Ahmed Al Mehairbi (trainer)

5.30pm Handicap (PA) Dh70,000 (D) 1,600m

Winner Sawt Assalam, Szczepan Mazur, Ibrahim Al Hadhrami

6pm Maiden (PA) Dh70,000 (D) 1,800m

Winner Dergham Athbah, Pat Dobbs, Mohamed Daggash

6.30pm Handicap (PA) Dh70,000 (D) 1,800m

Winner Rajee, Fernando Jara, Majed Al Jahouri

7pm Conditions (PA) Dh80,000 (D) 1,800m

Winner Kerless Del Roc, Fernando Jara, Ahmed Al Mehairbi

7.30pm Handicap (TB) Dh70,000 (D) 2,000m

Winner Pharoah King, Pat Dobbs, Doug Watson

8pm Conditions (PA) Dh85,000 (D) 2,000m

Winner Sauternes Al Maury, Dane O’Neill, Doug Watson

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home. 

Intercontinental Cup

Namibia v UAE Saturday Sep 16-Tuesday Sep 19

Table 1 Ireland, 89 points; 2 Afghanistan, 81; 3 Netherlands, 52; 4 Papua New Guinea, 40; 5 Hong Kong, 39; 6 Scotland, 37; 7 UAE, 27; 8 Namibia, 27