Palestinian women wave Hamas' flag on November 23, 2012. AFP Photo
Palestinian women wave Hamas' flag on November 23, 2012. AFP Photo

Egypt court declares Palestinian movement Hamas ‘terrorist’



CAIRO // An Egyptian court declared Hamas a “terrorist organisation” on Saturday, further isolating the rulers of Gaza who once found a warm welcome under the country’s previous government.

The ruling by Judge Mohamed El Sayed of the Court For Urgent Matters described Hamas as targeting both civilians and security forces inside Egypt’s restive Sinai Peninsula and aiming to harm the country. The Sinai has been under increasing attack by militants since the Egyptian military ousted President Mohammed Morsi in 2013.

“It has been proven without any doubt that the movement has committed acts of sabotage, assassinations and the killing of innocent civilians and members of the armed forces and police in Egypt,” the judge’s ruling said, according to state news agency MENA.

It comes just days after Egypt adopted a new antiterrorism law allowing the authorities to close the premises of any declared “terrorist” organisation, and to freeze its assets as well as those of its members.

Hamas’ assets in Egypt have been frozen since March last year, when Cairo also banned the group from carrying out any activities on its soil.

An Egyptian court also banned Hamas’ military wing, the Izzedine Al Qassam Brigades, on January 31 and designated it a terrorist organisation.

In Gaza, Hamas official Mushir Al Masri condemned the latest decision and urged Egypt to reverse course.

“This ruling serves the Israeli occupation. It’s a politicised decision that constitutes the beginning of Egypt evading its role toward the Palestinian cause,” he said. “This is a coup against history and an Egyptian abuse of the Palestinian cause and resistance, which fights on behalf of the Arab nation. We call on Egypt to reconsider this dangerous decision.”

The ruling further isolates Hamas, which once found open support under Morsi and from his now-outlawed Muslim Brotherhood group. Egypt’s new government has recently begun clearing a buffer zone along its border with Gaza in an attempt to destroy a cross-border network of tunnels that Hamas considers a lifeline.

The Cairo court said that Hamas’ fighters had used heavy weapons against the army, and was colluding with the Brotherhood.

“It has been also ascertained with documents that [Hamas] has carried out bombings that have taken lives and destroyed institutions and targeted civilians and the armed forces personnel,” the ruling said. “It has also been ascertained that this movement works for the interests of the terrorist Brotherhood organisation.”

* Associated Press with additional reporting by Agence France-Presse

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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A State of Passion

Directors: Carol Mansour and Muna Khalidi

Stars: Dr Ghassan Abu-Sittah

Rating: 4/5

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