US hedges bets but insists on need for Egyptian reform


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WASHINGTON // Slowly, the US stance on events in Egypt is changing. "The Egyptian government can't reshuffle the deck and then stand pat," the US State Department spokesman PJ Crowley said in a message on Twitter yesterday, after Hosni Mubarak, the Egyptian president, on Friday night announced that he would dismiss his cabinet.

"President Mubarak's words pledging reform must be followed by action," Mr Crowley added in the strongest statement yet to come from the State Department.

Mr Crowley's comments came before Mr Mubarak yesterday picked his intelligence chief and confidante, Omar Suleiman, as vice president, a post Mr Mubarak has never filled in 30 years of his rule.

There was no immediate US reaction to the appointment of Mr Suleiman, who has played a prominent role in Egypt's relations with the United States and its ally Israel.

But Washington was still hedging its bets yesterday as Egyptians embarked on a fifth day of protest in defiance of Mr Mubarak, whose televised speech to the nation late Friday did little to placate demonstrators.

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EDITORIAL

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The US is caught between support for Mr Mubarak, in whose leadership it has invested billions over the decades and who has been a long-time and loyal ally in the region, and the calls for change, reform and greater freedom from the streets of Egypt that Washington can no longer ignore.

For days, US officials had been urging "restraint" from all sides, the kind of language used when diplomats seek to avoid taking a clear position. On Friday night, however, Barack Obama, the US president, struck a more strident note with a short statement from the White House.

He called on the Egyptian government to respect the "universal" rights of its people to peaceful assembly and free speech.

Mr Obama's statement came after Mr Mubarak's own address in which the Egyptian leader promised his people that he would heed their calls for change. It also came after apparently the first conversation between the two leaders since the protests began.

"I told him," Mr Obama said of that conversation, "he has a responsibility to give meaning to those words, to take concrete steps and actions that deliver on that promise."

That remark, for all its implied admonishment, nevertheless suggested that Mr Obama still saw Mr Mubarak as leading such steps. And while it contrasted markedly in tone from that of Joe Biden, the US vice president, who only 24 hours earlier had told PBS he did not see Mr Mubarak as a dictator and rejected any comparison with Tunisia, it contained the same overall message: the US will support reform, will push for more political openness, but - at least for now - within the confines of the current leadership.

Graeme Bannerman, a scholar with the Middle East Institute and a former Middle East analyst at the US State Department, said: "The problem for the United States is that [US-aligned Arab] governments have supported, or at least not opposed, American policies that are unpopular with their own people.

"Therefore, whatever change occurs which increases popular participation - which we are for - will create a government that will be less friendly with our policies."

US officials, both privately and publicly, have long protested at Egyptian government practices. In a new batch of diplomatic dispatches out of the US embassy in Cairo released by Wikileaks on Friday, Margaret Scobey, the US ambassador to Egypt, in 2009 described policy brutality in Egypt as "routine and pervasive".

The US also openly criticised Egyptian parliamentary elections in November 2010 in which Cairo banned international monitors, and the National Democratic Party, Mr Mubarak's party, won nearly every seat.

Nevertheless, in December the US still approved an aid package to Egypt of more than US$2 billion (Dh7.3bn). US military aid to Egypt totals over $1.3bn annually. In addition, the US Agency for International Development (USAID) has provided more than $28bn in economic and development assistance to the country since 1975.

After Israel, Egypt is the second largest recipient of US aid.

On Friday, Robert Gibbs, the White House spokesman, said the US was going to review its "assistance posture" pending developments in Egypt, but critics said change in US policy was unlikely unless forced upon Washington.

"The US wants the regime to stay at all costs," said As'ad AbuKhalil, a professor of political science at California State University and author of the Angry Arab News Service blog. He said Egypt's peace treaty with Israel was one of the overriding factors in this calculation.

"The optimism of Arabs, and Egyptians in particular, has to be counterbalanced with the extent to which Israel and America are not going to let change come to Egypt."

Options for the US are, however, limited. It will not openly side with the government against protesters asking for the very reforms the US traditionally promotes, nor can it abandon the Egyptian leadership. Officials in Washington will likely continue simply to call for restraint in the coming days until the situation clears, mindful that the worst outcome would be a brutal crackdown.

But US attitudes toward Arab public opinion may well shift. For long, officials and policymakers in Washington have seen Arab public opinion as largely irrelevant and even unreasonable.

Thus David Frum, a speech writer for former President George W Bush, could this week dismiss Palestinian anger over revelations contained in the Palestine Papers as evidence that popular Palestinian demands are unrealistic.

Popular Arab demands may not be so easy to ignore any more.

"This should be some of the lessons," Mr Bannerman said. "There is a popular public opinion in the Arab world, and it's not just for their own well-being, it is a whole series of issues.

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PROFILE

Name: Enhance Fitness 

Year started: 2018 

Based: UAE 

Employees: 200 

Amount raised: $3m 

Investors: Global Ventures and angel investors 

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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.”

Company profile

Company: Verity

Date started: May 2021

Founders: Kamal Al-Samarrai, Dina Shoman and Omar Al Sharif

Based: Dubai

Sector: FinTech

Size: four team members

Stage: Intially bootstrapped but recently closed its first pre-seed round of $800,000

Investors: Wamda, VentureSouq, Beyond Capital and regional angel investors

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What is graphene?

Graphene is extracted from graphite and is made up of pure carbon.

It is 200 times more resistant than steel and five times lighter than aluminum.

It conducts electricity better than any other material at room temperature.

It is thought that graphene could boost the useful life of batteries by 10 per cent.

Graphene can also detect cancer cells in the early stages of the disease.

The material was first discovered when Andre Geim and Konstantin Novoselov were 'playing' with graphite at the University of Manchester in 2004.

Greatest Royal Rumble results

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The Undertaker beats Rusev in a casket match

Brock Lesnar retains the WWE Universal title against Roman Reigns in a steel cage match

Braun Strowman won the 50-man Royal Rumble by eliminating Big Cass last

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Specs
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What is Genes in Space?

Genes in Space is an annual competition first launched by the UAE Space Agency, The National and Boeing in 2015.

It challenges school pupils to design experiments to be conducted in space and it aims to encourage future talent for the UAE’s fledgling space industry. It is the first of its kind in the UAE and, as well as encouraging talent, it also aims to raise interest and awareness among the general population about space exploration. 

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RESULTS
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My Country: A Syrian Memoir

Kassem Eid, Bloomsbury

Biography

Her family: She has four sons, aged 29, 27, 25 and 24 and is a grandmother-of-nine

Favourite book: Flashes of Thought by Sheikh Mohammed bin Rashid

Favourite drink: Water

Her hobbies: Reading and volunteer work

Favourite music: Classical music

Her motto: I don't wait, I initiate

 

 

 

 

 

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Call of Duty: Black Ops 6

Developer: Treyarch, Raven Software
Publisher:  Activision
Console: PlayStation 4 & 5, Windows, Xbox One & Series X/S
Rating: 3.5/5