CAIRO // Many Egyptians are looking back with a mixture of disbelief and frustration at Mohammed Morsi's foreign policy in his first year in office as the nation's first freely elected president.
Mr Morsi and his Muslim Brotherhood have in just under a year ruined the close ties Egypt had built over several decades with traditional backers and investors in the Arabian Gulf region, costing the country billions of dollars in much-needed aid and investment.
Initially, the administration forged close ties with Iran, a longtime rival of Gulf Arab nations wary of the intentions and ambitions of Tehran's ruling clergy and its support of Bashar Al Assad, the Syrian president.
Mr Morsi soon upset Iran with calls for the removal of Mr Al Assad, its strong ally, and, more recently, by breaking off relations with the regime of Mr Al Assad and implicitly endorsing the travel of Egyptians to Syria to fight alongside rebels.
Relations with the United States, Egypt's main foreign backer for nearly 40 years, began on a positive note but have recently been somewhat fraught over Cairo's poor human-rights record and the president's failure to unite his deeply polarised nation.
The European Union, whose members include some of Egypt's largest donors and trade partners, such as Germany, France and Italy, is now among Cairo's harshest foreign critics, with the president's perceived authoritarianism and failure to restructure the economy blamed for blocking billions of dollars in aid.
Mr Morsi and his chief foreign policy adviser, Essam El Hadad, dismiss criticism of their handling of foreign relations, speaking of a new Egypt that makes its own policies free of outside influence.
"Our foreign policy is based on three main rules: balance, equality and achieving mutual objectives," Mr Morsi told Cairo's Al Ahram newspaper in a four-page interview published on June 7.
During his 29 years in power, Mr Morsi's deposed predecessor, Hosni Mubarak, focused on the Arabian Gulf, the West and Israel, while ignoring Africa, Asia and Latin America. The speed with which Mr Morsi has lost these friends and made new enemies has raised questions about his foreign policy.
Egypt's relations with the UAE are a case in point. Authorities in the Emirates said this month they were putting on trial 30 Emirati and Egyptian suspects over an alleged coup plot linked to Egypt's Muslim Brotherhood.
Mr Morsi has remained silent on the trial and his foreign ministry said it was monitoring the case. However, Essam El Erian, the deputy head of the Muslim Brotherhood's political arm - the Freedom and Justice party - made disparaging remarks about the Emirates during a televised hearing of a parliamentary committee. The comments outraged Egyptians and reinforced the perception of an administration whose foreign policy pronouncements are neither disciplined nor diplomatic.
Mr Morsi met politicians at the presidential palace in early June to discuss the impact on Egypt's share of Nile River water once Ethiopia completed construction of a massive dam on the Blue Nile. Unaware that the meeting was being broadcast live, some politicians, mostly from Islamic parties, suggested sabotaging the dam, aiding Ethiopian rebels or starting rumours to scare the Ethiopian government.
Ethiopia, for decades a quiet rival of Egypt on the African stage, summoned the Egyptian ambassador to demand an explanation.
Mr Morsi's own lack of experience on the world stage brings him criticism and sometimes ridicule.
Last January, at a news conference with Angela Merkel after a meeting in which the German leader gave him a dressing down for his human-rights record and views on Jews, Mr Morsi impatiently looked at his watch the moment he reached the podium, seemingly indicating his disdain for the rebuke. Ms Merkel glared at him across the stage, a look that spoke volumes of the tension between the two.
Mr Morsi at the time was besieged by the media and foreign leaders over a 2010 public address in which he described Jews as the "descendants of apes and pigs". He maintained that they were taken out of context.
Last year, he was caught on camera fiddling with his private parts as he sat next to Julia Gillard, Australia's former prime minister. The video quickly went viral on YouTube, offering rich material for critics.
On substance, too, Mr Morsi's foreign policy has provoked concern.
While failing to secure support from traditional donors, including a pending US$4.8 billion (Dh17.6bn) loan from the International Monetary Fund, Mr Morsi has spearheaded the country's growing dependence on Qatar's largesse to stay economically afloat. Doha has offered at least $5bn in loans and grants to Cairo over the past year - a source of consternation not just to his critics at home but also abroad.
Mr Morsi told Al Ahram he wanted to maintain close ties with Washington and made light of the fact that he has yet to be invited to the White House nearly year after taking office.
"It is a question of arranging it [the visit], nothing more," the Egyptian leader said.
Mr Morsi's standing in Washington rose significantly in November, when he successfully mediated a truce between Israel and Hamas, the Palestinian chapter of Egypt's Brotherhood. However, relations with the US were dealt a blow in early June when an Egyptian court sentenced 43 non-profit organisation workers, including 16 Americans, to sentences as long as five years for what the judge said was their use of illegal funds to foment unrest in Egypt.
None of the 43 were jailed, with all the foreign defendants outside the country and most of the Egyptians receiving suspended sentences. But the verdict raised a diplomatic storm, with influential US legislators implicitly threatening to cut off aid.
The proposed 2014 budget from the US president, Barack Obama, has honoured aid commitments to US allies in the Middle East, including $1.5bn in military aid and economic support to Egypt.
The Morsi administration has also continued to be publicly upbeat on relations with Washington.
"At an official level, relations are continuing at a good and positive rate," said Mr El Hadad, Mr Morsi's foreign policy adviser. "But I have the feeling that there are some who are seeking to poison this relationship with false information and incorrect news and faulty assessments." He did not elaborate.
MATCH INFO
What: Brazil v South Korea
When: Tonight, 5.30pm
Where: Mohamed bin Zayed Stadium, Abu Dhabi
Tickets: www.ticketmaster.ae
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Results
Ashraf Ghani 50.64 per cent
Abdullah Abdullah 39.52 per cent
Gulbuddin Hekmatyar 3.85 per cent
Rahmatullah Nabil 1.8 per cent
MATCH INFO
Chelsea 1 (Hudson-Odoi 90 1')
Manchester City 3 (Gundogan 18', Foden 21', De Bruyne 34')
Man of the match: Ilkay Gundogan (Man City)
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
Killing of Qassem Suleimani
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
Sarfira
Director: Sudha Kongara Prasad
Starring: Akshay Kumar, Radhika Madan, Paresh Rawal
Rating: 2/5
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
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The specs: 2017 Ford F-150 Raptor
Price, base / as tested Dh220,000 / Dh320,000
Engine 3.5L V6
Transmission 10-speed automatic
Power 421hp @ 6,000rpm
Torque 678Nm @ 3,750rpm
Fuel economy, combined 14.1L / 100km
25-MAN SQUAD
Goalkeepers: Francis Uzoho, Ikechukwu Ezenwa, Daniel Akpeyi
Defenders: Olaoluwa Aina, Abdullahi Shehu, Chidozie Awaziem, William Ekong, Leon Balogun, Kenneth Omeruo, Jamilu Collins, Semi Ajayi
Midfielders: John Obi Mikel, Wilfred Ndidi, Oghenekaro Etebo, John Ogu
Forwards: Ahmed Musa, Victor Osimhen, Moses Simon, Henry Onyekuru, Odion Ighalo, Alexander Iwobi, Samuel Kalu, Paul Onuachu, Kelechi Iheanacho, Samuel Chukwueze
On Standby: Theophilus Afelokhai, Bryan Idowu, Ikouwem Utin, Mikel Agu, Junior Ajayi, Valentine Ozornwafor
Company%20Profile
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Nayanthara: Beyond The Fairy Tale
Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni
Director: Amith Krishnan
Rating: 3.5/5
PROFILE OF SWVL
Started: April 2017
Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh
Based: Cairo, Egypt
Sector: transport
Size: 450 employees
Investment: approximately $80 million
Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani
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.”
TRAP
Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue
Director: M Night Shyamalan
Rating: 3/5
The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now
COMPANY%20PROFILE
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