A Sheikh Zayed mural on the Corniche in Abu Dhabi. Andrew Henderson / The National
A Sheikh Zayed mural on the Corniche in Abu Dhabi. Andrew Henderson / The National
A Sheikh Zayed mural on the Corniche in Abu Dhabi. Andrew Henderson / The National
A Sheikh Zayed mural on the Corniche in Abu Dhabi. Andrew Henderson / The National

Zayed’s legacy lives on today


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Eleven years have passed since Sheikh Zayed, the founder of the country, passed away. In that time, many Emiratis have grown up and many others have been born, none of whom had the opportunity to learn from the nation’s father directly. It is all the more important, then, that the memory of Sheikh Zayed is preserved. Because, as the years pass and as the UAE grows, it becomes more and more apparent that the firm foundations laid by Sheikh Zayed and the other founding fathers are responsible for the stable, secure and prosperous society we see around us.

There is still much work to be done. Not because there was anything left undone by Sheikh Zayed, but because the union of these seven emirates is continually changing and evolving. There are new challenges abroad and new decisions to be taken at home.

It is in that light that two decisions, reported yesterday, need to be seen. The restructuring of education, as announced by the Cabinet on Sunday, was taken, as Sheikh Mohammed bin Rashid, Prime Minister and Ruler of Dubai said, to prepare future generations “to reach number one rank in the world”. In the last decade alone, the workplace has changed so much and the knowledge instilled in future generations needs to change to adapt to that reality.

The same applies to the changes announced to the way the Federal National Council is elected. As promised by the Government, the number of eligible voters has risen from the last poll in 2011, to nearly 225,000 citizens. As Mona Al Bahar, a Dubai member of the current FNC put it, the increase demonstrates the keenness of the Government to ensure “the maximum number of people participating in the nation’s building process”.

Eleven years after our founding father passed away, the country is still developing. The foundations remain firm but each new generation of leaders and citizens continue to build upon it, seeking to make a better country, year on year. That was the strategic vision of Sheikh Zayed – and that is still his legacy.

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About Proto21

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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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Engine 60kwh FWD

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