BlackBerry service suspension withdrawn

The BlackBerry service in the UAE, due to be suspended in two days' time, is to continue as normal, the Telecommunications Regulatory Authority (TRA) has announced.

In a statement from WAM, the Government news agency, the TRA said that BlackBerry services are now compliant with the UAE's telecommunications regulatory framework. The UAE authorities had sought the ability to decode the encrypted messages that BlackBerry users send to one another. Other countries, including India and Saudi Arabia, have sought similar access.

"Therefore", the TRA affirmed today in a statement: "all Blackberry services in the UAE will continue to operate as normal and no suspension of service will occur on October 11".

The TRA also acknowledged "the positive engagement and collaboration of Research In Motion" (RIM, the Canadian owner of BlackBerry) "in reaching this regulatory compliant outcome".

In August the TRA announced it had had taken the decision to suspend certain BlackBerry services, citing security reasons.

BlackBerry e-mail, BlackBerry web browsing, social networking and instant messaging on BlackBerry devices supported as part of the BlackBerry service were expected to be suspended in the UAE on October 10.

In a statement after the TRA announcement, the telecoms provider Etisalat, which claims to provide services to 80 per cent of BlackBerry users in the Emirates, said: "Our focus has always been to ensure continuity of service for our customers. With the TRA’s notification of uninterrupted Blackberry services in the UAE, we are pleased to confirm that all Blackberry services will continue to operate as normal.

"In light of the TRA decision, the alternative mobility packages announced by Etisalat in August, for its existing BlackBerry customers, are no longer applicable."

Etisalat also announced that it will be launching two new BlackBerry devices, the Torch and the New Curve.

A statement from Du welcomed the BlackBerry announcement.

"Since the TRA's August 1 announcement regarding the possible suspension of certain Blackberry services, our focus has always been to ensure continuity of service for our customers", said Du.

Both Etisalat and du received notification from the TRA that BlackBerry services would not be interrupted, and sent messages to their users.

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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.”