(FILES) An undated file picture shows Lebanese singer Suzanne Tamim posing during a photoshoot in Egypt. Egypt's public prosecutor charged Egyptian tycoon Hisham Talaat Mustafa in connection with the brutal killing of Tamim, state media reported on September 2, 2008. Tamim was found dead in the Gulf emirate of Dubai in July. AFP PHOTO/STR *** Local Caption ***  214885-01-08.jpg
Suzanne Tamim posing during a photoshoot in Egypt.

Tamim's murder turns into political drama in Egypt



CAIRO // Egyptians have been gripped by a political drama overshadowing the dozens of television serials airing throughout the month of Ramadan and drawing attention, once more, to the cozy relationship between money and political power in the country. The lead character this time is Hisham Talaat Moustafa, an Egyptian billionaire and prominent figure in the ruling National Democratic Party, who has been charged with paying US$2 million (Dh7.34m) to have Suzan Tamim, a Lebanese singer, brutally murdered.

Ms Tamim, 31, was found dead in the living room of her Dubai apartment on July 28, with multiple knife wounds to her face and body. "The ruling and media men of the National Democratic party are desperately trying to distance themselves from the Hisham Talaat Moustafa case," said Ibrahim Eissa, editor of the opposition daily Al Dustour. "[But] any attempt to separate the ruling party from the scandals of its men will surely fail."

Moustafa, 48, is a prominent member of the NDP's policy committee, which is headed by Gamal Mubarak, the son of Hosni Mubarak, the president, and was chairman of the board of Egypt's largest publicly traded real estate company, which is worth several billion dollars. He is also a member of Egypt's Shura Council and was expected to be the next in line to become housing minister. Moustafa has been charged with ordering and paying Mohsen el Sokari, 39, a former Egyptian state security officer, $2m to kill Tamim, according to Abdel Maguid Mahmoud, the prosecutor general. He is currently in custody awaiting trial.

This is just one of a number of cases that have shed light on the marriage between money and power in Egypt. The regime is still reeling from the involvement of Mamdouh Ismail, another Shura Council member, in a ferry tragedy that claimed the lives of around 1,000 Egyptians in Feb 2006. Ismail, the head of the Al Salaam Maritime Transport Company which owned the ferry, fled to London to avoid prosecution after the incident. A court found him innocent in July this year, but after public outrage against the verdict, Mr Mahmoud appealed and a retrial opened last week.

Mohammed Farid Khamis, a prominent businessman and NDP member in parliament, is currently being questioned for allegedly attempting to bribe a judge. "Mamdouh Ismail, Hisham Talaat Moustafa, Mohammed Farid Khamis, and more are coming - the businessmen who are related to the government through membership of the parliament or Shura Council are falling," Mahmoud Mosallam, a member of the NDP, wrote in the independent daily Al Masry Al Youm on Saturday.

"The government must purify itself from the businessmen ? The government has lost from betting on the businessmen and by selling them huge swathes of land at very cheap prices. They just sought protection in its alliance," he wrote. The predominantly state-owned media have tried to play down the cases, both through their coverage and by omission. Pro-government papers like Al Ahram did not even mention the nationality of Moustafa when el Sokari was arrested in Cairo last month.

Mr Mahmoud, too, issued a publishing ban on the case, and last month, copies of Al Dustour newspaper were withdrawn from sale after it reported that "a prominent Egyptian figure" who was "highly influential" was allegedly involved in Tamim's death. Mr Mahmoud later referred the newspaper's managing editor to public prosecutors for breaking the ban. At the same time, state-owned television gave Moustafa a platform on prime time shows to defend himself, which he used to threaten newspapers, which wrote about his involvement in the case, with legal action.

Analysts expressed concern over the state's protection of accused ruling party members and associated businessmen. "Most of the catastrophes that have been inflicted on the country recently have come from the alliance between businessmen and the [NDP's] policy committee, [whose members] present themselves as the new liberals," said Diaa Rashwan, a political analyst. "The political meaning and implications are very dangerous. A group that has no political, cultural or moral reference is running Egypt's affairs. This is pretty scary."

Magdi el Geled, editor of the independent daily Al Masry Al Youm, said the Moustafa case typified Egypt's political establishment and similar cases were likely to follow. "The place of Moustafa's case is not the Criminal Court, it should have been transferred to its rightful place - a political trial for our whole era," he wrote in yesterday's issue. "If we want justice, integrity and transparency, we should punish Hisham and those who stand behind him, who produced him and 10s of others. Enough of fooling the Egyptian people and Egyptians also should stop fooling themselves, otherwise a thousand Hishams will be born daily, as the corrupt womb is still fertile," he wrote.

For the majority of Egyptians, however, such cases simply reinforce their feeling of detachment from the state. "They are playing with money," said Sabah, a middle-aged newspaper seller, at her stand in the Cairo suburb of Heliopolis. "Paying millions to chase and kill a woman, while we can't feed our kids." nmagd@thenational.ae

Fixture and table

UAE finals day: Friday, April 13 at Rugby Park, Dubai Sports City

  • 3pm, UAE Conference: Dubai Tigers v Sharjah Wanderers
  • 6.30pm, UAE Premiership: Dubai Exiles v Abu Dhabi Harlequins

 

UAE Premiership – final standings

  1. Dubai Exiles
  2. Abu Dhabi Harlequins
  3. Jebel Ali Dragons
  4. Dubai Hurricanes
  5. Dubai Sports City Eagles
  6. Abu Dhabi Saracens

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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If you go...

Fly from Dubai or Abu Dhabi to Chiang Mai in Thailand, via Bangkok, before taking a five-hour bus ride across the Laos border to Huay Xai. The land border crossing at Huay Xai is a well-trodden route, meaning entry is swift, though travellers should be aware of visa requirements for both countries.

Flights from Dubai start at Dh4,000 return with Emirates, while Etihad flights from Abu Dhabi start at Dh2,000. Local buses can be booked in Chiang Mai from around Dh50

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Cory Sandhagen v Umar Nurmagomedov
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COMPANY PROFILE

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