CAIRO // The ruling National Democratic Party wrapped up its annual conference this week stressing Egypt's economic progress amid allegations of corruption, stringent criticism of government policies and speculation over the future leadership of the country.
"New Thinking for the Future of Our Country" was the slogan for this year's three-day conference that ended on Monday, visible on countless party signs throughout the streets of Cairo.
Economic progress was to take centre stage during the convention.
In a speech on the opening day, Hosni Mubarak, the president, said: "I want to stress the party's and government's commitment to economic reform and our determination to continue that without hesitation."
Gamal Mubarak, Mr Mubarak's son and head of the NDP's powerful policy committee, had a prominent role throughout the convention and defended the government's liberal economic policies, which he said had led to 7.1 per cent growth and was already beginning to trickle down to the poor.
He also noted that the private sector accounted for 70 per cent of jobs in Egypt.
Activists held a parallel online convention in protest of the government, setting up a website, www.anti-ndp.com, with the counter slogan "Don't believe them".
Organised by the April 6 Youth Movement, an activist group on Facebook named after worker protests throughout the Nile Delta in April this year, the website's statement vowed to expose the NDP's failures.
"We are going to expose their lies to the whole world with statistics and let all people know that they are liars? and reveal their failures in health, education, development, fighting poverty, corruption," it said.
But Gamal Mubarak, anticipating such attacks in his speech on Sunday, said most criticism towards the NDP came from reactionaries pushing outdated policies.
"Since we are the majority party it's only natural that we get the lion's share of attacks, suspicion and criticism," he said.
"Some of those who are calling for reforms want to take us 30 or 40 years back by calling for the implementation of outdated policies, by clashing with the outside world and manipulating the people by using emotional slogans," he said.
He also praised his father.
"The reforms and visions of president Mubarak achieved sovereignty for Egypt and the independence of its territories for the longest period in our modern history," he said.
Hosni Mubarak, 80, who heads the NDP, has been in power since Oct 1981. He won a fifth six-year term as president in 2005.
Recent scandals involving businessmen close to both Gamal Mubarak and the NDP have led to widespread accusations of corruption and cronyism within the party, an issue the president's son addressed in his speech.
"The NDP is not spoiling businessmen and is not hiding any corruption. They say we are pampering the private sector? I say nobody is above the law," he said, clearly referring to the trial of Hisham Talaat Moustafa, an Egyptian tycoon who is accused of paying someone to murder Suzan Tamim, a Lebanese singer, in Dubai in July.
The scandal has tarnished Gamal Mubarak's image, with one analyst calling it the "final nail in the coffin" of his attempt to win acceptance in Egypt.
"The scandal has reinforced negative perceptions of the president's son and his inner circle of unsavoury business associates," said John R Bradley, author of Inside Egypt: The Land of the Pharaohs on the Brink of a Revolution, in an opinion piece before the convention.
Gamal Mubarak's central role in the conference has rekindled speculation he will replace his father as president, a possibility he did not dispel.
"Is there a country or party that determines four or six years before the elections who is the candidate? I don't think that we can be asked three years before the elections to respond to this question," he said in response to a question.
"We have institutional and the party's bylaws and we have a constitution and a clear legislative framework that we respect," he said.
The opposition was not convinced. "The parallel president: He acts like the actual leader and gives the throne speech," read the headline of the leftist weekly Al Arabi on Sunday.
Mr Bradley even suggested the succession of Gamal Mubarak could be what tips Egypt over the edge.
"Opposition to Gamal Mubarak inheriting the reins of power is one thing that unites all of Egypt's fractious opposition groups," he wrote.
In closing the conference on Monday, Moufid Shehab, a senior NDP member and minister of state for legal and parliamentary affairs, said "the NDP is still pursuing the democracy process that we started and we respect the laws and the constitution".
However, it only seemed to underline the political repression of recent years, ranging from the detention without trial of opposition members to the persecution of editors and journalists.
"I have no doubt that the ruling National Democratic Party with its current policies not only has become a party that is incapable of leading Egypt in the present but is posing a real burden on Egypt's future," said Hassan Nafaa, a political analyst.
Meanwhile, on the city's streets, Mahmoud el Masry, a taxi driver in his forties who has struggled with rising prices, said he had little hope this year's convention would bring about positive change.
"Every year there is the same talk, which is cheap, while everything else is becoming very expensive," he said. "Our future will be better if the government and the party distribute the millions they spend on these conferences and the ads they fill the streets with."
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RESULT
Huddersfield Town 2 Manchester United 1
Huddersfield: Mooy (28'), Depoitre (33')
Manchester United: Rashford (78')
Man of the Match: Aaron Mooy (Huddersfield Town)
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Innotech Profile
Date started: 2013
Founder/CEO: Othman Al Mandhari
Based: Muscat, Oman
Sector: Additive manufacturing, 3D printing technologies
Size: 15 full-time employees
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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.”
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
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Match info
Manchester City 3 (Jesus 22', 50', Sterling 69')
Everton 1 (Calvert-Lewin 65')
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million