US health centre names local chief



ABU DHABI // A pathologist and administrator who has worked at the Cleveland Clinic, one of America's leading health centres, for more than 30 years will be the new chief executive of Abu Dhabi's first speciality cardiac hospital. Dr Andrew Fishleder's appointment to head the Cleveland Clinic Abu Dhabi, which is scheduled to open in 2011, was to be announced today during the Arab Health Congress.

"I am truly honoured to have the opportunity to lead Cleveland Clinic's expansion in the Middle East," Dr Fishleder said. The 360-bed facility will be modelled on its US namesake, which is well known for its cardiac care. It will also focus on digestive and respiratory diseases, neuroscience and ophthalmology and offer a variety of services including psychiatry and the treatment of back pain. It will further handle patients with serious ailments who would otherwise need to be sent abroad for treatment.

"Many patients have come from Abu Dhabi to the Cleveland Clinic and that was the beginning of our relationship," Dr Fishleder said. "Historically we have had a lot of people from the Gulf states and many come for cardiovascular care. "We have had a long-standing relationship with the leadership in the UAE and Abu Dhabi. We have been approached from many places around the world to consider partnerships and this was a very natural one with regards to the relationship we already have in place.

"Clearly whatever we transfer here has to be sensitive to the culture here in Abu Dhabi, but at the same time, the goal from the health care delivery perspective is to model it after the clinic, which is a physician-run organisation," he said. "The services and operations are brought in from a physician's perspective. This is the core strength of the Cleveland Clinic and I don't see any reason why that could not be transferred here."

The Abu Dhabi hospital will also use a new health care model developed at the main Cleveland Clinic under which all the doctors working in a section collaborate on the care of each patient. "Within the cardiovascular institute we have cardiologists, vascular surgeons, vascular medicine doctors all having complementary expertise," Dr Fishleder said. "If they work side by side in the same physical environment then they can work together all the time. They know one another so it's very easy for patients to receive consultation and have a joint decision be made on what is in the best interest of the patient."

The hospital also plans to work with other institutions in the Mubadala Healthcare network, including the Imperial College of London Diabetes Centre and the newly announced Wooridul Spine Hospital, to tap into medical expertise from around the world. The Cleveland Clinic already manages Sheikh Khalifa Medical City Abu Dhabi, as part of Health Authority - Abu Dhabi's strategy to promote well-known health care brands.

Tawam Hospital in Al Ain is also affiliated with Johns Hopkins Medicine, which is well known for its medical research in the US. "The growth of this city and country is phenomenal," Dr Fishleder said. "The investment in health care, as well as other aspects of infrastructure of the city, make this an exciting place to participate." amcmeans@thenational.ae

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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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