A member of the military band takes a nap while waiting for the National Day festivities to start at Heritage Village on Wednesday.
A member of the military band takes a nap while waiting for the National Day festivities to start at Heritage Village on Wednesday.

Flying shoes and grounded boat crew



Islamists claimed responsibility for the bombing of a Russian train that killed 26 people and injured more than 100. A statement on a website linked to Chechen rebels claimed that the attack was "prepared and executed along with other acts of sabotage, planned from the start of this year and successfully carried out against a set of strategically important sites in Russia, on the orders of Caucasus Emir Dokku Umarov". The self-styled "emir" is the leader of the "Caucasus Emirate", which seeks to unite Islamic groups in the North Caucasus and establish Sharia rule. The statement also described the Nevsky Express, which runs between Moscow and St Petersburg, as being "mainly used by the ruling bureaucrats of Russia".

An Iraqi journalist who threw his shoes at the former US president George Bush was pelted with footwear on a visit to Paris. Muntadar al Zaidi was attacked by another Iraqi journalist apparently supportive of US policy in the region, as he spoke about Iraqi war victims at a conference. Like president Bush, Mr al Zaidi was able to dodge the flying shoe and joked afterwards: "He stole my technique." The attacker was chased from the building by Mr al Zaidi's brother, who also deployed flying footwear.

President Obama came under fire after announcing an extra 30,000 US troops for Afghanistan while saying he planned to begin a withdrawal from 2011. Some Democrats questioned the US$30 billion cost of the extra troops, while Republicans said setting a date for a pull-out sent the wrong message to both America's allies and the Taliban. Senator John McCain asked President Obama: "You either have a winning strategy, and once it has succeeded then you withdraw, or you have an arbitrary date. Which is it?" America's decision to increase troop numbers also placed pressure on western governments to increase their involvement. The Taliban said it would step up its battle, and that if more troops were sent "more Americans will die".

One of the world's leading climate researchers was forced to stand down after e-mails were leaked showing he advocated suppressing evidence showing global warming was not caused by man. Professor Phil Jones, the head of the climate research unit at the University of East Anglia in the UK, will give up his post while an inquiry takes place. The e-mails suggest that supporters of climate change theories manipulated data to hide evidence that global warming had stopped, something Prof Jones described as "absolute rubbish".

A vote to ban minarets in Switzerland was described as a "security risk" by the country's foreign minister. Nearly 60 per cent of Swiss voted in favour of the ban, which was proposed by the right-wing Swiss People's Party, the largest party in parliament, on the grounds that minarets were a sign of Islamisation. Micheline Calmy-Rey, the Swiss foreign minister, said she was "shocked" and disappointed" by the vote and warned her countrymen that "provocation risks triggering other provocation and risks inflaming extremism". The measure has forced the government to ban the construction of any new minarets, but still allows mosques to be built.

Peru's chief of police suspended a senior investigator who was said to have faked a report that people were being murdered for their fat. Last month Felix Murga caused a sensation after arresting four suspects he claimed were behind the deaths of 60 people, whose fat was sold to European cosmetic companies. Doubts were first raised when local police in the region where the gang were said to be operating said they had no knowledge of any killings. Mr Murga, the head of an anti-kidnapping unit, has now been placed on indefinite leave for damaging the reputation of his department.

A lawyer in Saudi Arabia said he was planning to sue the government over its failure to protect the city of Jeddah after flooding killed more than 100 people. A massive rainstorm brought flash flooding and two metres of water in the city centre that caused massive damage and saw many victims drown in their cars. The human rights lawyer Walid Abu al Kheir said the city had failed to use money intended for drainage works and that this had caused the worst of the flooding. Public protests are banned in Saudi Arabia, but 11,000 people have already signed a Facebook page called Popular Campaign to Save the City of Jeddah.

A council in England has apologised to a woman after initially telling her to remove two gnomes by her front door on the grounds that they were a fire hazard. Linda Langford, 57, was also ordered to remove a pottery tortoise from outside her flat in Tipton in the West Midlands. Sandwell Metropolitan Borough Council has since apologised, with Mahboob Husaain, the borough's cabinet member for housing, saying officials had "slightly misinterpreted the policy on items in communal areas".

Five British sailors, who caused an international incident after their yacht strayed into Iranian waters, blamed a faulty propeller and the wrong map. The group were sailing from Bahrain to Dubai when they were detained by the Revolutionary Guard. They were freed after two days and allowed to continue to Dubai after Iranian authorities concluded the incident had been "a mistake".

National Day celebrations saw thousands take to the streets of all seven Emirates, with fireworks in the skies and traffic jams of cars decorated with the national colours and images of rulers. This year is the 38th anniversary of the creation of the UAE, with celebrations now reaching more remote areas as well as the major cities because of improved transport and communications links. In his address to the nation, Sheikh Mohammed bin Rashid, Ruler of Dubai and Prime Minister of the UAE, said that "big goals will remain our objectives".

* The National

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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Our family matters legal consultant

Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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.”