Outside the big set-piece events – the speeches from members of the ruling families of the UAE – at the 2015 Government Summit in Dubai, there was plenty of intellectual lubrication to keep the grey matter ticking over.
Klaus Schwab, the founder and chairman of the World Economic Forum (WEF), appeared to be more provocative than he was at Davos last month. Maybe it’s something to do with the warmer climate, but the professor highlighted three quite controversial themes for the summit.
Top of his agenda was the “collapse of trust between leaders and those they lead, especially political and business leaders”.
That could be a touchy subject at an occasion where many of the political and business leaders of the UAE were in attendance, but in case anyone took offence, Mr Schwab was quick to “commend the UAE and its leadership for the vision with which the country is led, and which has made it the most competitive country in the region and one of the most competitive in the world”. Glad that one is cleared up then.
The other big challenges Mr Schwab identified were the changing economic environment, the effect of technological change on everyday life and the way we do business.
In conversation with Mohammed Al Gergawi – the Minister for Cabinet Affairs who is also the guiding light behind the summit organisation and a big advocate of the “smart city” concept at its core – the WEF chairman expanded: “In the new world economic order, it is not the big fish that eats the small; it is the fast fish that eats the slow.”
And on the pace of technological change, he was equally apocalyptic: “Change is not slow and gradual any more, it does not comes in waves; now it comes like a tsunami, and it is interwoven with everything we do, changing people and their lives.”
In this fast-moving world, we should be thankful for small islands of stability, such as Mr Schwab himself, who came across as a grand old institution in the swirling sea of change. “I’ve met practically every leader in the world over the last 45 years,” he informed the summit.
Later on the opening day, a veritable tsunami swept across the main plenary arena with the first session devoted to the issue of women and their role in the business and civil scene.
The feisty panel, led by Sheikha Lubna Al Qasimi, UAE Minister of Development International Cooperation, but ably backed by prominent women from Egypt and Saudi Arabia, was just getting down to one thorny issue: men were leading the world, but there were wars, economic problems, instability. Was this cause and effect, the panel asked?
Just as they were about to debate that question, one very important man walked into the hall. Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai, decided to hear the women’s debate himself.
In such august company, you might have expected the panel to tone down their calls for radical change for women, but no. Sheikha Lubna applauded progress the UAE had made towards female equality, but also pointed out that women comprised only 1 per cent of members of senior executive boards. She set a target of doubling that this year.
Just as forthright was Princess Ameerah Al Taweel of Saudi Arabia, who was asked if it was true that “behind every great man was a great woman”, in the words of the old saying.
“No, that’s not true. I’d rather say next to, not behind, every man you will find a woman.”
fkane@thenational.ae
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Where can I submit a sample?
Volunteers can now submit DNA samples at a number of centres across Abu Dhabi. The programme is open to all ages.
Collection centres in Abu Dhabi include:
- Abu Dhabi National Exhibition Centre (ADNEC)
- Biogenix Labs in Masdar City
- Al Towayya in Al Ain
- NMC Royal Hospital in Khalifa City
- Bareen International Hospital
- NMC Specialty Hospital, Al Ain
- NMC Royal Medical Centre - Abu Dhabi
- NMC Royal Women’s Hospital.
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
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Arsenal's pre-season fixtures
Thursday Beat Sydney 2-0 in Sydney
Saturday v Western Sydney Wanderers in Sydney
Wednesday v Bayern Munich in Shanghai
July 22 v Chelsea in Beijing
July 29 v Benfica in London
July 30 v Sevilla in London
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
WHAT%20ARE%20THE%20PRODUCTS%20WITHIN%20THE%20THREE%20MAJOR%20CATEGORIES%3F
%3Cp%3E%3Cstrong%3EAdvanced%20materials%3A%3C%2Fstrong%3E%20specifically%20engineered%20to%20exhibit%20novel%20or%20enhanced%20properties%2C%20that%20confer%20superior%20performance%20relative%20to%20conventional%20materials%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAdvanced%20components%3A%3C%2Fstrong%3E%20includes%20semiconductor%20components%2C%20such%20as%20microprocessors%20and%20other%20computer%20chips%2C%20and%20computer%20vision%20components%20such%20as%20lenses%20and%20image%20sensors%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAdvanced%20products%3A%3C%2Fstrong%3E%20includes%20personal%20electronics%2C%20smart%20home%20devices%20and%20space%20technologies%2C%20along%20with%20industry-enabling%20products%20such%20as%20robots%2C%203D%20printing%20equipment%20and%20exoskeletons%3C%2Fp%3E%0A%3Cp%3E%3Cem%3ESource%3A%20Strategy%26amp%3B%3C%2Fem%3E%3C%2Fp%3E%0A
Profile of MoneyFellows
Founder: Ahmed Wadi
Launched: 2016
Employees: 76
Financing stage: Series A ($4 million)
Investors: Partech, Sawari Ventures, 500 Startups, Dubai Angel Investors, Phoenician Fund