My 2020 Podcast: UN's Melissa Fleming on the 'silent war' that emptied the General Assembly



As the severity of the Covid-19 pandemic became evident, plans and events were cancelled or postponed around the world.

The Olympics and Dubai Expo are only two examples of the postponements in 2020. One major milestone the world was meant to celebrate was the 75th anniversary of the founding of the UN. World leaders were slated to descend upon New York to mark the important occasion. Instead, travel was halted and heads of state gave their brief pre-recorded speeches to a largely empty General Assembly Hall.

The UN headquarters has been empty of diplomats and officials for months now, as New York is one of the cities hit hardest by Covid-19.

“It was like a silent war that was coming in and just wreaking havoc everywhere. We were dealing with a global crisis for the first time really the Second World War and since the founding of the United Nations. A crisis that was really affecting everyone everywhere”. That is how Melissa Fleming, Undersecretary General for Global Communications at the UN, described New York in 2020.

Mrs Fleming spoke to The National of the role of the international organisation as a guest of the "My 2020" podcast.

Global co-operation is needed to tackle the challenges brought about by the pandemic. In addition to combatting the health and economic fallout from Covid-19, the UN has declared an “infodemic” that must be tackled. Mrs Fleming said that disinformation and fake news "in a public health crisis, is public harm. It makes people anxious, it leads them astray". The UN has launched an initiative called "Verified" to face this infodemic.

Next year, a major task for the UN and governments will be getting Covid-19 vaccines to people around the world – a logistical and resource challenge, complicated by disinformation campaigns against vaccines. Mrs Fleming warned: "We need to make sure that everybody has access, and even if it's only in our enlightened self-interest, you know, nobody is safe until everybody is safe."

"My 2020" is a seven-part series, hosted by Mina Al-Oraibi, The National's Editor-in-Chief, speaking to leaders on how their lives and industries have been changed by Covid-19.

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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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