Sudan's President Omar Al Bashir welcomes his Egyptian counterpart Abdel Fattah El Sisi at Khartoum International Airport on October 25, 2018. AFP
Sudan's President Omar Al Bashir welcomes his Egyptian counterpart Abdel Fattah El Sisi at Khartoum International Airport on October 25, 2018. AFP

Egypt woos Sudan as upstream Nile basin states draw closer



Driven by security and water concerns, Egypt has been actively wooing Sudan in a bid to draw its southern neighbour away from regional rivals Turkey and Qatar and enlist its support in a dispute with Ethiopia over Cairo's vital share of Nile waters.

Until 1956, Sudan was a condominium territory over which Egypt and the United Kingdom exercised joint sovereignty, meaning Egyptian influence once stretched from the shores of the Mediterranean deep into sub-Saharan Africa. Relations between the two Nile-basin, Afro-Arab nations have been fraught as a result of this colonial legacy, with tension often focusing on a dispute over a border strip controlled by Egypt and claimed by Sudan.

Ambitious attempts over the years to build a solid economic and political partnership have failed or made little progress and the rise to power in 1989 of an Islamist-leaning government led by Sudanese President Omar Al Bashir cast a dark shadow on relations.

More recently, Egypt was seriously alarmed by some of Sudan’s foreign policy choices, including Khartoum’s one-time flirtation with non-Arab and mostly Shiite Iran and later its friendly relations with Qatar and Turkey, two of Cairo’s chief regional rivals.

Equally alarming to Egypt has been Sudan’s perceived decision to side with Ethiopia in the latter’s dispute with Egypt over the construction of a major dam on the Blue Nile, which Egypt fears could significantly reduce its share of a river upon which it relies for 90 per cent of its fresh water needs. In siding with Addis Ababa, Khartoum hoped to secure a share of the the electricity to be generated from the Grand Ethiopian Renaissance Dam and also to pressure Cairo into a compromise on the border dispute.

Over the past two years, Sudan has accused Cairo of meddling in its internal affairs and of siding with rivals in South Sudan and Uganda. At the height of tensions earlier this year, Khartoum recalled its ambassador to Cairo and sanctioned media campaigns calling on the Sudanese to boycott Egyptian products and travel.

“Egypt’s relations with Sudan have always been through ups and downs,” said Hany Raslan, a Sudan expert with Cairo’s Al Ahram Centre for Political and Strategic Studies. “What the two countries are doing now is building genuine bilateral interests that could serve as a safety valve against future tensions.”

Egypt views Sudan as its strategic backyard, where it closely monitors potential threats to its national security.

It has, for example, bristled over Sudan’s offer of asylum to senior members of the Muslim Brotherhood, an outlawed Islamist group whose stalwart Mohamed Morsi was president for a year before the military, then led by current President Abdel Fattah El Sisi, removed him amid mass protests in 2013.

Egypt has also accused Sudan of allowing human trafficking and the smuggling of weapons across their porous desert border to ISIS militants fighting security forces in the Sinai Peninsula. Egypt has also complained that Sudan has been aiding extremist Islamist groups opposed to Libya’s Gen Khalifa Haftar, the Cairo- and UAE-backed commander of the self-styled Libyan National Army.

It is against this backdrop that Egypt under President El Sisi has been reaching out to Sudan in a way not seen in decades, perhaps with the knowledge that the battered economy of its southern neighbour following the secession of South Sudan in 2011 makes it more open to offers of economic cooperation and technical aid.

Making his sixth visit to Sudan since taking office in 2014, President El Sisi’s gushing remarks last week underlined just how much Cairo needs Khartoum on its side.

“No one, no matter how hard he tries, can count all that binds of our two nations,” he said .

“What binds us ... is rarely found between two nations anywhere in the world,” he added after some half-dozen bilateral co-operation agreements were signed, including a deal to export surplus electricity to Sudan and the establishment of a cross-border rail link.

President Al Bashir reciprocated with some upbeat rhetoric of his own along with a decision to lift a ban on imports of Egyptian agricultural produce that his government imposed last year when relations were at their lowest ebb in years.  "We have agreed to turn this relationship into a strategic one in every field," he said.

__________

Read more:

Sudan protests over Egyptian TV serial about terrorists

Sudan reshuffle brings in new oil and foreign ministers

South Sudanese Christians seek refuge with an unlikely neighbour

__________

Significantly, neither leader mentioned the border dispute, a sign that they may have decided to move forward without having to resolve that conflict for the moment.

Michael W Hanna of the New York-based Century Foundation believes the Egyptian-Sudanese rapprochement takes on added significance coming at a time when a reformist leader is at the helm in Ethiopia in the form of Prime Minister Abiy Ahmed. His stunning reconciliation with sworn enemy Eritrea has changed the region’s political landscape.

“In that climate of uncertainty, and despite pre-existing tensions over border issues and political dissidents, it is perhaps unsurprising that Egypt and Sudan have sought to mend fences and avert diplomatic deterioration,” said Mr Hanna.

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Director: Jon M Chu
Stars: Cynthia Erivo, Ariana Grande, Jonathan Bailey
Rating: 4/5
Intercontinental Cup

Namibia v UAE Saturday Sep 16-Tuesday Sep 19

Table 1 Ireland, 89 points; 2 Afghanistan, 81; 3 Netherlands, 52; 4 Papua New Guinea, 40; 5 Hong Kong, 39; 6 Scotland, 37; 7 UAE, 27; 8 Namibia, 27

Disclaimer

Director: Alfonso Cuaron 

Stars: Cate Blanchett, Kevin Kline, Lesley Manville 

Rating: 4/5

The Cairo Statement

 1: Commit to countering all types of terrorism and extremism in all their manifestations

2: Denounce violence and the rhetoric of hatred

3: Adhere to the full compliance with the Riyadh accord of 2014 and the subsequent meeting and executive procedures approved in 2014 by the GCC  

4: Comply with all recommendations of the Summit between the US and Muslim countries held in May 2017 in Saudi Arabia.

5: Refrain from interfering in the internal affairs of countries and of supporting rogue entities.

6: Carry out the responsibility of all the countries with the international community to counter all manifestations of extremism and terrorism that threaten international peace and security

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Install an air filter in your home.

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Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

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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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