Sheikh Khaled bin Mohamed meets famed architect Frank Gehry at Guggenheim Abu Dhabi site

Frank Gehry – the architect behind the Guggenheim Museum in Bilbao and the Louis Vuitton Foundation in Paris – met key Abu Dhabi officials at the Guggenheim Abu Dhabi museum site on Saadiyat Island.

Gehry was welcomed by Sheikh Khaled bin Mohamed bin Zayed, member of Abu Dhabi Executive Council and chairman of the Abu Dhabi Executive Office, and Mohamed Khalifa Al Mubarak, chairman of the Department of Culture and Tourism – Abu Dhabi.

Sheikh Khaled bin Mohamed bin Zayed, second from left, architect Frank Gehry, second from right, and senior officials of DCT – Abu Dhabi and the Solomon R Guggenheim Foundation, at the Guggenheim Abu Dhabi museum site on Saadiyat Island. Photo: Abu Dhabi Media Office

Also in attendance were William Mack and Wendy Fisher, chairman and president of the board of trustees of the Solomon R Guggenheim Foundation.

During the visit, Sheikh Khaled discussed the progress of the Guggenheim Abu Dhabi and reiterated the project’s goals of cultivating cultural exchange and transforming Abu Dhabi into a hub for culture and creativity.

The museum, designed by Gehry, was initially announced in 2006. Though its opening has faced delays along the way, the institution has been working on building its collection and, over the last year, has put together various virtual programmes.

Gehry’s design responds to the museum’s unique seafront location, with its three sides flanked by the Arabian Gulf. The building is planned at 30,000 square metres, which will be the largest facility for the Solomon R Guggenheim Foundation once completed. The gallery space will measure about 12,000 square metres.

Inspired by Middle Eastern design, including courtyards and wind towers, the various galleries will be linked by bridges around a central courtyard. Gehry has also envisioned various spaces for exhibition galleries, an education and research space, a conservation laboratory, a cultural centre and one for art and technology.

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Frank Gehry's impressive structures

The Dancing House, also called 'Fred and Ginger', by architects Vlado Milunic and Frank Gehry, in Prague, Czech Republic. All Photos: Alamy Stock Photo
Frank Gehry's Cleveland Clinic Lou Ruvo Centre for Brain Health, in Las Vegas, Nevada, USA
Hotel Marques de Riscal, designed by architects Frank Owen and Frank Gehry, in Elciego, Alava, Basque Country, Spain
Louis Vuitton Foundation art museum and cultural centre, designed by Frank Gehry, in Paris, France
Guggenheim Museum in Bilbao, Basque Country, Spain
Walt Disney Concert Hall in Los Angeles, California
Sculpture Peix D'or, Hotel Arts Barcelona, Mapfre Tower, in Barcelona, Spain

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.”

Sheikh Khaled bin Mohamed meets famed architect Frank Gehry at Guggenheim Abu Dhabi site

The pair discussed the progress of the museum

Frank Gehry's impressive structures