Hold fast the passport


Colin Randall
  • English
  • Arabic

One of the worst things you can do in the Arab world, a wise Iraqi-American colleague declared with only a minimum of exaggeration, is to lose your passport. "If the house is on fire, that's all you go back inside for," he said. "Let the jewellery burn." In all the years since she first ventured outside her native France, my wife has never lost hers. Or, at any rate, she hadn't until three days before a booked flight from Abu Dhabi to London. In fact, if she is right, even this blemish on her passport-owning record can be blamed on her old man.

What happened next, between sudden realisation of loss and planned departure, is not for the squeamish. My colleague was right. We discovered that to have any hope of sorting it out, you need the stamina of an ox, the patience of a saint, the elbows of an opening day of Harrods sale shopper, wads of dirhams and a tankful of petrol. The process began simply enough at the consular section of the French embassy, where the charming and efficient Françoise assured us that an emergency passport could be issued that morning on production of a declaration of loss from a nearby police station.

It was too simple to be true. The police station sent us to the Immigration Department. After a lot of upstairs/downstairs activity, shuffling between this desk and that, one office and another, we emerged with a very official-looking document. But we had barely begun. It had to be taken to the Sharia court for more signatures, and from there to the police station at Khalifa City for another. Next stop was a newspaper office to insert a small ad. And back again to immigration, where the declaration needed for the French was finally issued. It was already too late to return to Françoise, but we did spend a further 50 minutes jostling with others, in the absence of a formal queue, on what turned out to be a needless but costly procedure in the typing and photocopying section.

The following day, the emergency passport was duly handed over. But it now needed an official stamp before it could be used to leave the country. Upstairs/downstairs began all over again as we resumed our role as the parcel in pass-the-parcel. Two or three hours later, having seen no fewer than 10 officials, we were given a scrap of paper containing a message in Arabic. I stared at it in disbelief.

Do not mock scraps of paper. It informed airport immigration that a letter had been faxed. The letter was found, and we sailed through to our flight. And let none of this be taken as criticism of the officials we encountered. Almost without exception, they were polite, understanding and anxious to help; if the system has endless layers of bureaucracy, that is not their fault. And nor, as any of them might have pointed out but didn't, is it their fault if some clot planning a trip overseas contrives to lose the very piece of identification he or she requires most.
@email:crandall@thenational.ae

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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