A woman holds a banner during the protests in Cairo yesterday.
A woman holds a banner during the protests in Cairo yesterday.

Police clash with protesters calling for economic reforms in Egypt



CAIRO // Anti-riot police clashed with demonstrators yesterday as they prepared to march towards parliament demanding economic reforms and an end to Egypt's decades-old emergency law. About 400 demonstrators, including several members of parliament and opposition leaders, gathered in Cairo's main Tahrir Square demanding political reform despite a ban and warnings from the interior ministry.

However, hundreds of anti-riot and plain-clothed police surrounded the group and began to hit the protesters with batons. One activist, named as Ahmed Douma by fellow demonstrators, was arrested. Gamila Ismail, a member of the group Egyptian Women for Change, said: "When we tried to break the police barricades and go with the march as planned, the police pushed and hit us." The legislators, mainly from the Muslim Brotherhood, Egypt's strongest opposition group, had called for yesterday's protest to demand the end of emergency law, which has been imposed since 1981, and is expected to be renewed this month.

The law was put into effect when Hosni Mubarak, the Egyptian president, came to power after his predecessor Anwar Sadat was shot dead by Islamist militants at a military parade on October 6, 1981. Hassan Nafaa, the co-ordinator of the Egyptian Association for Change, said before the clashes: "This protest includes all the Egyptian symbols across the political spectrum, who gathered here to say, in a very simple, calm and civilised way, that Egypt stands united against emergency laws which prevent holding fair and free elections."

The demonstrators called for new laws to expand political rights and constitutional amendments to ensure free and fair elections. They also chanted against Mr Mubarak and his ruling National Democratic Party. "In the name of seven million unemployed Egyptians, Mubarak is null and void" and "Egyptian people are on the pavement, they can't been afford a loaf of bread", were rallying cries at the protest.

Opposition leaders want emergency laws abolished and constitutional amendments before this year's legislative elections and next year's presidential elections. Speeches calling for reform were made by a number of leaders at the protest including, Hamdi Hassan, spokesman for the Brotherhood bloc in parliament, Hamdeen Sabahi, a politician with the leftist el-Karama party and Yehia el-Gamal, a renowned judicial figure.

Mr Mubarak, who turns 82 today, has not said if he will run in the presidential elections. He has been recuperating at the Red Sea resort of Sharm el Sheikh for more than a month after having his gallbladder removed in March. @Email:nmagd@thenational.ae

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Favourite place to go to in the UAE: The desert sand dunes, just after some rain

Who inspires you: Anybody with new and smart ideas, challenging questions, an open mind and a positive attitude

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UK-EU trade at a glance

EU fishing vessels guaranteed access to UK waters for 12 years

Co-operation on security initiatives and procurement of defence products

Youth experience scheme to work, study or volunteer in UK and EU countries

Smoother border management with use of e-gates

Cutting red tape on import and export of food

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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