Mr El Sisi reassured the nation during a speech to a group of orthodox Christians. AFP
Mr El Sisi reassured the nation during a speech to a group of orthodox Christians. AFP
Mr El Sisi reassured the nation during a speech to a group of orthodox Christians. AFP
Mr El Sisi reassured the nation during a speech to a group of orthodox Christians. AFP

‘Why are you worried?’: El Sisi reassures Egyptian people as Libya tensions rise


Hamza Hendawi
  • English
  • Arabic

Addressing widespread fears the country could go to war in neighbouring Libya, Egypt's president sought to reassure Egyptians, saying no harm would come to them if they remain united.

President Abdel Fattah El Sisi made no direct mention of Libya, where a showdown is rapidly building between Egypt and Turkey.

The two regional powerhouses are backing rival sides in a drawn-out battle for Tripoli.

Turkey supports the Government of National Accord based in the Libyan capital, while Egypt supports Field Marshal Khalifa Haftar, commander of the Libyan National Army, who has vowed to end the rule of militias in Tripoli.

His campaign to capture Tripoli began in April, but his forces have not yet dislodged fighters backing the government there.

The potential for a broader conflict has grown significantly since Turkey sent troops to Libya this week as part of a security pact signed between Ankara and Tripoli.

The countries also signed a maritime demarcation agreement which expanded Turkey's continental shelf in the east Mediterranean.

In theory, that infringes on a region Egypt, Cyprus, Israel and Greece are planning to turn into an energy hub after the discovery there of natural gas.

"I see that the Egyptians are worried. Why are you worried?" he told several hundred worshippers gathered late on Monday night at a cathedral to celebrate Coptic Orthodox Christmas.

“There is no reason to worry … no one can hurt us so long as we are standing together,” Mr El Sisi said at the televised event late on Monday night.

“So long as Egyptians are united no one can do anything to us or drag us into something here or there.”

Mr El Sisi, a general-turned-president in office since 2014, has repeatedly said that Egypt would not tolerate any foreign domination of Libya.

Whatever happens in Libya affects Egypt, he has said.

He has also made clear that Egypt will not send troops to Libya, with which Egypt shares a desert border. Short of moving troops to Libya, Egypt's only option appears to be a significant expansion of the military assistance Cairo provides the LNA while seeking to isolate Ankara internationally.

Egypt responded to Turkey's attempt to gain a foothold in Libya by staging shows of force in the Mediterranean, throwing into exercises some of its most recent military acquisitions including submarines and helicopter and troop carriers.

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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.”

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