The National Museum of Afghanistan in Kabul. Alamy
The National Museum of Afghanistan in Kabul. Alamy
The National Museum of Afghanistan in Kabul. Alamy
The National Museum of Afghanistan in Kabul. Alamy

How will cultural heritage be protected under the Taliban?


Melissa Gronlund
  • English
  • Arabic

Twenty years ago, the Taliban attached dynamite to two 6th-century Buddhas in the Bamiyan valley and famously blew the enormous statues to bits. The group’s reputation has since been synonymous with the destruction of cultural heritage, and many assume that their return to power will bring about a similar campaign of devastation.

But when the Taliban entered Kabul this month, they posted guards around the National Museum of Afghanistan, saving its antiquities from any feared looting. No vandalism or destruction of major heritage sites has yet been reported.

Instead, some restoration work is starting again, such as at the Machine Khana, part of an urban transformation project being undertaken in an industrial site in central Kabul. It was temporarily suspended when the Taliban first entered the capital, and opened again on Saturday, with 600 labourers and technicians showing up to work.

The site of the giant Buddha statues that were destroyed by the Taliban in 2001 in Afghanistan's Bamiyan province. AFP
The site of the giant Buddha statues that were destroyed by the Taliban in 2001 in Afghanistan's Bamiyan province. AFP

“I’m feeling cautiously optimistic about cultural heritage,” says Ajmal Maiwandi, chief executive of the Aga Khan Trust for Culture in Afghanistan, which is overseeing the Machine Khana restoration.

“Our cultural projects are for the benefit of the Afghan people, and the people of Afghanistan haven't stopped existing in the past week. They’re still there. They require assistance and then the preservation of heritage, and we continue to provide that assistance.”

While the Taliban have started to confirm some of the worst international fears over human rights, the realm of cultural heritage is starting to look like the proverbial dog that has not barked.

The Aga Khan Trust for Culture is one of the major cultural heritage non-profits in the country, with $1 billion spent by the Trust and its partners since 2002. Its projects range from the restoration of the 16th-century shrine of Abu Nasr Khwaja Parsa in Balkh, an ancient city located just outside Mazar-i-Sharif, to the conservation of the Old City of Herat – and most are expected to restart soon.

Maiwandi says that in the organisation’s discussions so far with lower to mid-level Taliban operatives, the message they have heard is that culture heritage is to be protected.

A photo from 1991 that shows 16th-century shrine of Abu Nasr Khwaja Parsa, or Green Mosque in Balkh, Afghanistan. Getty Images
A photo from 1991 that shows 16th-century shrine of Abu Nasr Khwaja Parsa, or Green Mosque in Balkh, Afghanistan. Getty Images

Philippe Marquis, head of the French Archaeological Delegation – better known as Dafa – has encountered the same. He has sent go-betweens to communicate with Dafa and the local Taliban leaders in the areas where the organisation is leading projects. They received no objection to the work they are doing.

Dafa is now in the process of signing memoranda of understanding – agreements that are one step short of a contract – with local Taliban leaders for the sites of Mes Aynak, south of Kabul, and Balkh.

“They are quite happy to see the cultural heritage workers come back,” says Marquis, who was in France for the summer when the Taliban took over. Like Maiwandi, who left Afghanistan owing to the security situation, he plans to return to Kabul once commercial flights resume and, in his case, France allows travel to the country. “The management of cultural heritage should be possible, but it will rely on western countries’ willingness to work with the Taliban.”

The Taliban’s apparently softened stance on cultural heritage today might well be part of its bid for international legitimacy, which is understood to be behind some of its positive, though mixed, messaging in support of women’s education. And all may yet change as the Taliban solidify their governance of the country and start to implement some of their more fundamentalist ideas.

In this photograph taken on November 8, 2017 an Afghan labourer is working amidst scaffolding for the ongoing conservation work at the ninth-century mosque Masjid-e Haji Piyada (mosque of the walking pilgrim) in Balkh Province. AFP
In this photograph taken on November 8, 2017 an Afghan labourer is working amidst scaffolding for the ongoing conservation work at the ninth-century mosque Masjid-e Haji Piyada (mosque of the walking pilgrim) in Balkh Province. AFP

But many charities have already been working for months in areas controlled by the Taliban.

“The indications are that the Taliban broadly support the preservation of cultural heritage, not as appeasement of external audiences, but as interest in the past inherent to Afghans,” says Maiwandi. "In the larger context, I think people understand the value – both commercial and cultural – in the preservation of heritage sites. Like many other issues, this level of interest and engagement will become clearer in the weeks and months ahead."

There is, perhaps, one plain reason for this change in stance: economic opportunity. Cultural heritage projects are a vital source of revenue in an economy that has been nearly obliterated.

“For the Taliban, architectural excavations are a way of paying workers in the community,” says Marquis. “It’s a factor of local development. Cultural heritage could help take the country out of its economic position and act as a factor of stabilisation. The Taliban don’t want people to leave.”

The country is also extremely dependent on the foreign aid that cultural heritage non-profits bring. After 20 years of intensive NGO activity, these bodies supply vast tranches of Afghan civil society – “from health to education to the water supply,” says Khan Agha Dawoodzai, of the Bureau for Rights-Based Development (BRD), an Afghan NGO that focuses on human rights.

In the realm of cultural heritage, these organisations are banking on the fact that they will have left a legacy in the capacity-building and training they have effected over the past two decades.

The BRD’s projects include the repairing of the Sikh site of the Sultan Poor Chenee Springs, which it is undertaking in partnership with Aliph and the Prince Claus Fund. The work involves restoration as well as community training in “heritage first-aid”, or the suite of actions, such as situation analysis, assessment and stabilisation, which should be undertaken if a cultural heritage site is damaged by conflict or natural disaster.

“It is important that the community should be the primary caretaker of their cultural heritage,” says Dawoodzai. “Therefore we are training them in first-aid skills, so that they know their own responsibility and they feel a sense of ownership.”

That kind of thinking might persist even under the Taliban – a hope that relies on Afghan communities feeling secure enough to worry about cultural heritage rather than the safety of their families.

Scaffolding for the ongoing conservation work at the ninth-century mosque Masjid-e Haji Piyada (mosque of the walking pilgrim) in Balkh Province, taken in November 2017. AFP
Scaffolding for the ongoing conservation work at the ninth-century mosque Masjid-e Haji Piyada (mosque of the walking pilgrim) in Balkh Province, taken in November 2017. AFP

As much as economic opportunity could be the driving force for cultural heritage protection under the Taliban, ongoing economic uncertainty is probably its biggest threat.

Many employees in Kabul have been unable to draw salaries for months. Most banks are still closed and ATMs are running out of money. Inflation is up to 35 per cent, and as the turmoil at the airport attests, some Afghans are still looking for a way out, if they can find one.

Others have already left, depriving cultural projects of important sources of expertise. Those with more means – and in roles that are harder to replace – were more able to leave.

And if foreign governments or charities refuse to deal with the Taliban, the aid for ongoing projects in Afghanistan will quickly dry up – exacerbating already difficult circumstances.

“There is a danger of destruction due to development, erosion, global warming, illegal excavation and trade of antiquities in Afghanistan,” says Marquis.

He points to Lashkari Bazar, once the winter palace of the Ghaznavid and Ghurid sultans in the 10th and 13th centuries, in Helmand province. Last October, when the Taliban pushed through in Helmand, thousands fled their homes and began living in the relatively well-preserved ruins of the palace.

Dafa was in the process of rehousing the settlers elsewhere so that the site itself could be preserved for future generations, but its efforts have been suspended since the Taliban took control of the whole country. Meanwhile, the number of internally displaced people is likely to rise.

Philippe Marquis, head of Dafa, has worked in Afghanistan for twenty years. Photo: Philippe Marquis
Philippe Marquis, head of Dafa, has worked in Afghanistan for twenty years. Photo: Philippe Marquis

The danger of looting, which is ever-present in an archeologically rich country such as Afghanistan, will also almost certainly climb.

Since 2001, Afghanistan has signed on to nine different Unesco heritage protection laws, notes Alexander Herman, an expert in restitution. Abrogating any of them would be a breach of international law – but it is unclear whether the Taliban will uphold those and other conventions.

Equally, while many believe the Taliban have publicly announced a ban on looting, this announcement could not be verified, and any government is unlikely to be able to control on-the-ground looting. Marquis expects the black market trade in antiquities to increase, both via looting from the ground and the sale of collections as various tribal leaders seek to raise money. The ransacking of the National Museum in the 1990s, after the Soviet war, and other looting during that period created a prolonged and lucrative dark market for Afghan antiquities.

“There is a balance to be struck between heritage and economic development,” says Maiwandi. “If heritage is really important to the Taliban, they have to be held accountable for its preservation.”

Internal divisions and unfolding events on the ground mean that, ultimately, any prognoses are speculation. While the ministers of some departments have been announced, there has been no word on the Minister of Culture. It could also be that NGOs are signalling a positivity about the Taliban because they know the Taliban will be the only game in town.

And the work of cultural heritage practitioners has long been an uphill battle.

“You have to understand that we're a generally optimistic people,” says Maiwandi. “There's no doubt. One can’t work the way we have in Afghanistan for two decades without retaining optimism. So we retain that optimism now as well.”

Indoor cricket in a nutshell

Indoor Cricket World Cup - Sep 16-20, Insportz, Dubai

16 Indoor cricket matches are 16 overs per side

8 There are eight players per team

There have been nine Indoor Cricket World Cups for men. Australia have won every one.

5 Five runs are deducted from the score when a wickets falls

Batsmen bat in pairs, facing four overs per partnership

Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.

Zones

A Front net, behind the striker and wicketkeeper: 0 runs

B Side nets, between the striker and halfway down the pitch: 1 run

Side nets between halfway and the bowlers end: 2 runs

Back net: 4 runs on the bounce, 6 runs on the full

The bio

Favourite book: Peter Rabbit. I used to read it to my three children and still read it myself. If I am feeling down it brings back good memories.

Best thing about your job: Getting to help people. My mum always told me never to pass up an opportunity to do a good deed.

Best part of life in the UAE: The weather. The constant sunshine is amazing and there is always something to do, you have so many options when it comes to how to spend your day.

Favourite holiday destination: Malaysia. I went there for my honeymoon and ended up volunteering to teach local children for a few hours each day. It is such a special place and I plan to retire there one day.

The National Archives, Abu Dhabi

Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.

Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en

TEST SQUADS

Bangladesh: Mushfiqur Rahim (captain), Tamim Iqbal, Soumya Sarkar, Imrul Kayes, Liton Das, Shakib Al Hasan, Mominul Haque, Nasir Hossain, Sabbir Rahman, Mehedi Hasan, Shafiul Islam, Taijul Islam, Mustafizur Rahman and Taskin Ahmed.

Australia: Steve Smith (captain), David Warner, Ashton Agar, Hilton Cartwright, Pat Cummins, Peter Handscomb, Matthew Wade, Josh Hazlewood, Usman Khawaja, Nathan Lyon, Glenn Maxwell, Matt Renshaw, Mitchell Swepson and Jackson Bird.

Abu Dhabi GP schedule

Friday: First practice - 1pm; Second practice - 5pm

Saturday: Final practice - 2pm; Qualifying - 5pm

Sunday: Etihad Airways Abu Dhabi Grand Prix (55 laps) - 5.10pm

Play-off fixtures

Two-legged ties to be played November 9-11 and November 12-14

 

  • Northern Ireland v Switzerland
  • Croatia v Greece
  • Denmark v Ireland
  • Sweden v Italy
Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Islamophobia definition

A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.

About Takalam

Date started: early 2020

Founders: Khawla Hammad and Inas Abu Shashieh

Based: Abu Dhabi

Sector: HealthTech and wellness

Number of staff: 4

Funding to date: Bootstrapped

Our legal columnist

Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

BRAZIL%20SQUAD
%3Cp%3EGoalkeepers%3A%20Alisson%2C%20Ederson%2C%20Weverton%3Cbr%3E%3Cbr%3EDefenders%3A%20Dani%20Alves%2C%20Marquinhos%2C%20Thiago%20Silva%2C%20Eder%20Militao%20%2C%20Danilo%2C%20Alex%20Sandro%2C%20Alex%20Telles%2C%20Bremer.%3Cbr%3E%3Cbr%3EMidfielders%3A%20Casemiro%2C%20Fred%2C%20Fabinho%2C%20Bruno%20Guimaraes%2C%20Lucas%20Paqueta%2C%20Everton%20Ribeiro.%3Cbr%3E%3Cbr%3EForwards%3A%20Neymar%2C%20Vinicius%20Junior%2C%20Richarlison%2C%20Raphinha%2C%20Antony%2C%20Gabriel%20Jesus%2C%20Gabriel%20Martinelli%2C%20Pedro%2C%20Rodrygo%3C%2Fp%3E%0A
Racecard

7pm: Abu Dhabi - Conditions (PA) Dh 80,000 (Dirt) 1,600m

7.30pm: Dubai - Maiden (TB) Dh82,500 (D) 1,400m

8pm: Sharjah - Maiden (TB) Dh82,500 (D) 1,600m

8.30pm: Ajman - Handicap (TB) Dh82,500 (D) 2,200m

9pm: Umm Al Quwain - The Entisar - Listed (TB) Dh132,500 (D) 2,000m

9.30pm: Ras Al Khaimah - Rated Conditions (TB) Dh95,000 (D) 1,600m

10pm: Fujairah - Handicap (TB) Dh87,500 (D) 1,200m

Alita: Battle Angel

Director: Robert Rodriguez

Stars: Rosa Salazar, Christoph Waltz, Keean Johnson

Four stars

HIJRA

Starring: Lamar Faden, Khairiah Nathmy, Nawaf Al-Dhufairy

Director: Shahad Ameen

Rating: 3/5

Skoda Superb Specs

Engine: 2-litre TSI petrol

Power: 190hp

Torque: 320Nm

Price: From Dh147,000

Available: Now

INDIA'S%20TOP%20INFLUENCERS
%3Cp%3E%3Cstrong%3EBhuvan%20Bam%3C%2Fstrong%3E%3Cbr%3E%3Ca%20href%3D%22https%3A%2F%2Fwww.instagram.com%2Fbhuvan.bam22%2F%3Fhl%3Den%22%20target%3D%22_self%22%3EInstagram%3C%2Fa%3E%20followers%3A%2016.1%20million%3Cbr%3EBhuvan%20Bam%20is%20a%2029-year-old%20comedian%20and%20actor%20from%20Delhi%2C%20who%20started%20out%20with%20YouTube%20channel%2C%20%E2%80%9CBB%20Ki%20Vines%E2%80%9D%20in%202015%2C%20which%20propelled%20the%20social%20media%20star%20into%20the%20limelight%20and%20made%20him%20sought-after%20among%20brands.%3Cbr%3E%3Cstrong%3EKusha%20Kapila%3C%2Fstrong%3E%3Cbr%3E%3Ca%20href%3D%22https%3A%2F%2Fwww.instagram.com%2Fkushakapila%2F%3Fhl%3Den%22%20target%3D%22_self%22%3EInstagram%3C%2Fa%3E%20followers%3A%203.1%20million%3Cbr%3EKusha%20Kapila%20is%20a%20fashion%20editor%20and%20actress%2C%20who%20has%20collaborated%20with%20brands%20including%20Google.%20She%20focuses%20on%20sharing%20light-hearted%20content%20and%20insights%20into%20her%20life%20as%20a%20rising%20celebrity.%3Cbr%3E%3Cstrong%3EDiipa%20Khosla%3C%2Fstrong%3E%3Cbr%3E%3Ca%20href%3D%22https%3A%2F%2Fwww.instagram.com%2Fdiipakhosla%2F%3Fhl%3Den%22%20target%3D%22_self%22%3EInstagram%3C%2Fa%3E%20followers%3A%201.8%20million%3Cbr%3EDiipa%20Khosla%20started%20out%20as%20a%20social%20media%20manager%20before%20branching%20out%20to%20become%20one%20of%20India's%20biggest%20fashion%20influencers%2C%20with%20collaborations%20including%20MAC%20Cosmetics.%3Cbr%3E%3Cstrong%3EKomal%20Pandey%3Cbr%3E%3C%2Fstrong%3E%3Ca%20href%3D%22https%3A%2F%2Fwww.instagram.com%2Fkomalpandeyofficial%2F%3Fhl%3Den%22%20target%3D%22_self%22%3EInstagram%3C%2Fa%3E%20followers%3A%201.8%20million%3Cbr%3EKomal%20Pandey%20is%20a%20fashion%20influencer%20who%20has%20partnered%20with%20more%20than%20100%20brands%2C%20including%20Olay%20and%20smartphone%20brand%20Vivo%20India.%3Cbr%3E%3Cstrong%3ENikhil%20Sharma%3C%2Fstrong%3E%3Cbr%3E%3Ca%20href%3D%22https%3A%2F%2Fwww.instagram.com%2Fnikkkhil%2F%3Fhl%3Den%22%20target%3D%22_self%22%3EInstagram%3C%2Fa%3E%20followers%3A%201.4%20million%3Cbr%3ENikhil%20Sharma%20from%20Mumbai%20began%20his%20online%20career%20through%20vlogs%20about%20his%20motorcycle%20trips.%20He%20has%20become%20a%20lifestyle%20influencer%20and%20has%20created%20his%20own%20clothing%20line.%3Cbr%3E%3Cem%3ESource%3A%20Hireinfluence%2C%20various%3C%2Fem%3E%3Cbr%3E%3C%2Fp%3E%0A
Specs

Engine: Dual-motor all-wheel-drive electric

Range: Up to 610km

Power: 905hp

Torque: 985Nm

Price: From Dh439,000

Available: Now

THE BIO

Favourite book: ‘Purpose Driven Life’ by Rick Warren

Favourite travel destination: Switzerland

Hobbies: Travelling and following motivational speeches and speakers

Favourite place in UAE: Dubai Museum

TCL INFO

Teams:
Punjabi Legends 
Owners: Inzamam-ul-Haq and Intizar-ul-Haq; Key player: Misbah-ul-Haq
Pakhtoons Owners: Habib Khan and Tajuddin Khan; Key player: Shahid Afridi
Maratha Arabians Owners: Sohail Khan, Ali Tumbi, Parvez Khan; Key player: Virender Sehwag
Bangla Tigers Owners: Shirajuddin Alam, Yasin Choudhary, Neelesh Bhatnager, Anis and Rizwan Sajan; Key player: TBC
Colombo Lions Owners: Sri Lanka Cricket; Key player: TBC
Kerala Kings Owners: Hussain Adam Ali and Shafi Ul Mulk; Key player: Eoin Morgan

Venue Sharjah Cricket Stadium
Format 10 overs per side, matches last for 90 minutes
Timeline October 25: Around 120 players to be entered into a draft, to be held in Dubai; December 21: Matches start; December 24: Finals

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Will the pound fall to parity with the dollar?

The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.

Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.

New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.

“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.

The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.

The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.

Bloomberg

The specs

Engine: 2.9-litre twin-turbo V6

Power: 540hp at 6,500rpm

Torque: 600Nm at 2,500rpm

Transmission: Eight-speed auto

Kerb weight: 1580kg

Price: From Dh750k

On sale: via special order

%20Ramez%20Gab%20Min%20El%20Akher
%3Cp%3E%3Cstrong%3ECreator%3A%3C%2Fstrong%3E%20Ramez%20Galal%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Ramez%20Galal%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStreaming%20on%3A%20%3C%2Fstrong%3EMBC%20Shahid%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2.5%2F5%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
While you're here
McLaren GT specs

Engine: 4-litre twin-turbo V8

Transmission: seven-speed

Power: 620bhp

Torque: 630Nm

Price: Dh875,000

On sale: now

The 10 Questions
  • Is there a God?
  • How did it all begin?
  • What is inside a black hole?
  • Can we predict the future?
  • Is time travel possible?
  • Will we survive on Earth?
  • Is there other intelligent life in the universe?
  • Should we colonise space?
  • Will artificial intelligence outsmart us?
  • How do we shape the future?

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.”

Updated: August 29, 2021, 5:15 AM