Egyptian electoral workers count ballots at the end of the final day of the Egyptian presidential election in Cairo. Egypt’s voters have handed Abdel Fattah El Sisi an overwhelming victory. Mohamed Hossam / EPA
Egyptian electoral workers count ballots at the end of the final day of the Egyptian presidential election in Cairo. Egypt’s voters have handed Abdel Fattah El Sisi an overwhelming victory. Mohamed Hossam / EPA
Egyptian electoral workers count ballots at the end of the final day of the Egyptian presidential election in Cairo. Egypt’s voters have handed Abdel Fattah El Sisi an overwhelming victory. Mohamed Hossam / EPA
Egyptian electoral workers count ballots at the end of the final day of the Egyptian presidential election in Cairo. Egypt’s voters have handed Abdel Fattah El Sisi an overwhelming victory. Mohamed Ho

Sisi re-elected Egyptian president with overwhelming majority


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Egypt’s voters have handed Abdel Fattah El Sisi an overwhelming victory, but with a lower turnout that the president had called for in seeking endorsement for a second term.

The former army field marshal and military intelligence chief garnered as much as 90 per cent of the vote, according to initial counts reported by the state-run Middle East News Agency, with a turnout of about 24 million voters - about 40 per cent of the electorate.

Voters who cast their ballots for Mr El Sisi this week spoke of their support for his efforts to improve security, launching of large and long-delayed infrastructure projects, and taking brave steps to re-direct a lagging economy. But Mr El Sisi's failure to improve on the 47.5 per cent turnout of the 2014 election could be attributed to apathy among Egyptians under 30 - the country's biggest demographic - who often speak about lack of progress on education, healthcare and job creation.

Young critics say they do not believe the older generation running the country know how to create private sector jobs or jump-start needed reforms in education. The president's heavy-handed governing style constrains the ability of Egyptians in their twenties and thirties to contribute meaningfully to the country's development, they say.

"They are launching these projects with large investments assuming that it will solve the unemployment crisis and attract investments," said Mohamed Zaky El Karany, 25, a youth leader in the Social Democratic Party. "But this is not the development that people need; education and health care should be the first step to raise our human capital."

These issues primarily affect Egyptians under 30, who make up two-thirds of the country's 90 million population, said Mr El Karany.

Although Mr El Sisi's prime minister, Sherif Ismail, has said the 2018-19 budget will allocate more to education, health and social welfare and protection programmes, it is widely acknowledged that actual spending in these areas lag behind the government's targets and those set in the constitution.

Despite a growing population, the proportion of the state budget allocated for education declined from 11.9 per cent in 2004 to 7.4 per cent in 2017.

"Thirty-five per cent of Egyptian children in school do not know how to read or write, so the public-school system is failing to prepare students for either university education or vocational training," said Adel Abdel Ghafar, an Egyptian researcher at the Brookings Institution think tank. "Poor education is disadvantaging them for life."

In a pre-election interview, Mr El Sisi himself complained that "real education" had been lacking in Egypt for more than 30 years.

"An educational reform programme takes 14 years to implement," the president said.

He said he would work with global partners to improve the higher education system.

"All new universities will form partnerships with the world's top 50 universities and that will result in modifying the curricula and teaching methods appropriately," the president said.

No Egyptian institution made the Times Higher Education ranking of the top five universities in the Arab world, published one week before the elections.

The shortfall for social investment extends to Egypt's healthcare system. Medical insurance is out of reach for 25 million citizens who cannot afford the monthly premiums.  
 
"The government currently allocates only 8 billion pounds [Dh1.66bn] for the health system," said Deputy Health Minister Ali Hagazi. "The new insurance system [drafted in February] will require 120bn pounds annually." 

Prime Minister Ismail's 2018-19 budget allocates 322bn pounds to social welfare and protection programmes, with more than two thirds intended for cash handouts and food subsidies for the poorest Egyptians.
 
Observers question how the government can simultaneously improve the quality of education, fund a new medical insurance scheme and complete construction of its showcase mega-projects, which include a city built from scratch on the site of the Second World War battlefield at Al Alamein and a US$45bn (Dh165bn) new capital in the desert 40 kilometres east of Cairo.

 Mustafa Kamal, 26, an assistant researcher at Cairo's Al Ahram Centre for Political and Strategic Studies, said hitting the 3 per cent of GDP spending targets for education and health care would be difficult for the government. By comparison about 20.5 per cent of the UAE's 2017 budget was earmarked for education, and 8.6 per cent for health care.
 
"The health insurance law has not been implemented yet despite the approval of the Egyptian parliament," Mr Kamal said, "and the education ministry is late in delivering the comprehensive strategy that President El Sisi has asked for." 

The president has made clear that there are limits on what he can do to address these issues, even with a centralised power structure.
 
"Citizens have to take some of the responsibility," Mr El Sisi said. "Couples who choose to have up to five children without first having a plan for how to provide for them should take more care in thinking about the future."

His supporters say the president is doing the best he can given the security and economic challenges he inherited.

“The next four years do represent a real challenge for Egypt,” said Michael Mamadouh, 20, a business major at Ain Shams University. “The president is not responsible alone for the development of the country. The people are also responsible for this. We need all of us to work together for the benefit of our country.”

'Shakuntala Devi'

Starring: Vidya Balan, Sanya Malhotra

Director: Anu Menon

Rating: Three out of five stars

COMPANY%20PROFILE
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MATCH INFO

Uefa Champions League final:

Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports

Like a Fading Shadow

Antonio Muñoz Molina

Translated from the Spanish by Camilo A. Ramirez

Tuskar Rock Press (pp. 310)

COMPANY PROFILE
Name: Akeed

Based: Muscat

Launch year: 2018

Number of employees: 40

Sector: Online food delivery

Funding: Raised $3.2m since inception 

Global state-owned investor ranking by size

1.

United States

2.

China

3.

UAE

4.

Japan

5

Norway

6.

Canada

7.

Singapore

8.

Australia

9.

Saudi Arabia

10.

South Korea

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

Date started: 2015

Founder: John Tsioris and Ioanna Angelidaki

Based: Dubai

Sector: Online grocery delivery

Staff: 200

Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends

ANDROID%20VERSION%20NAMES%2C%20IN%20ORDER
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Electric scooters: some rules to remember
  • Riders must be 14-years-old or over
  • Wear a protective helmet
  • Park the electric scooter in designated parking lots (if any)
  • Do not leave electric scooter in locations that obstruct traffic or pedestrians
  • Solo riders only, no passengers allowed
  • Do not drive outside designated lanes
The specs: 2017 Lotus Evora Sport 410

Price, base / as tested Dh395,000 / Dh420,000

Engine 3.5L V6

Transmission Six-speed manual

Power 410hp @ 7,000rpm

Torque 420Nm @ 3,500rpm

Fuel economy, combined 9.7L / 100km

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