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Aviation

Emirates to speed up airport experience

Emirates has launched its “Together” initiative in collaboration with Dubai Customs, Dubai General Directorate of Residency and Foreigners Affairs, Dubai Police and Dubai Airports. The initiative aims to improve traveller experience at the airline’s Dubai international airport hub with practical solutions based on “smart, speed, saving, service, safety and security”.

Commodities

DMCC chief eyes Western Australia ties

In an effort to strengthen bilateral relations between Dubai Multi Commodities Centre (DMCC) and Western Australia, the DMCC executive chairman, Ahmed Bin Sulayem, met Deidre Willmott, the chief executive of the Chamber of Commerce and Industry of Western Australia (CCIWA).

Education

Chartered Institute for IT signs agreements

The Middle East section of the Chartered Institute for IT (BCS) has signed memorandums of understanding with Heriot-Watt University Dubai and the University of Bolton Ras Al Khaimah. The agreements were signed by Adel Al Hashmi, the chairman of BCS, and Stephen Gill, the head of mathematical and computer sciences at Heriot-Watt and Fathima Shemim, the computing programme head at University of Bolton RAK.

Economy

RAK unveils centre for corporate registration

The government of Ras Al Khaimah yesterday unveiled RAK International Corporate Centre as its premium corporate registry jurisdiction for international businesses in the emirate. The Centre was formed following the merger of RAK International Companies and RAK Offshore.

Quote:

“Higher net-worth or more sophisticated investors will, in our view, always demand face-to-face advice.”

Ronit Ghose, a Citi analyst, speaking after Betterment, a US online investment adviser – or ‘robo-adviser’ – overhauled its entire brand.

Economy

Bee’ah launches new company EvoTeq

Bee’ah, Sharjah’s environmental management company, announced the launch of a new company called EvoTeq. Bee’ah also signed two new business agreements in its quest to work on innovative tech-based solutions for the region’s environmental issues.

Trade

Dubai and Kenya Chambers to cooperate

The Dubai Chamber of Commerce and Industry and the Kenya National Chamber of Commerce and Industry signed a deal yesterday to establish a framework for economic cooperation and stronger trade ties between Kenya and the emirate.

Finance

Northern Trust opens branch in ADGM

US asset manager Northern Trust yesterday announced the opening of its new branch office in Abu Dhabi Global Market (ADGM). The branch will offer Northern Trust’s range of asset servicing and asset management solutions directly to institutional investors and affluent individuals across the region.

Tourism

Yas Island call for events sponsors

Yas Island wants to host events all year round to boost visits to the island and add to Abu Dhabi’s economy. Miral is inviting second round of sponsorships until June 23 to be part of the scheduled Harry Potter in concert and festivals like Taste of Abu Dhabi on Yas.

Aviation

Turkish Airlines adds Saudi routes

Turkish Airlines is launching new flights from several cities in the Middle East to key tourist destinations in Turkey. The new direct flights from Saudi Arabia will be from Jeddah to Ankara and Trabzon; Riyadh to Antalya and Trabzon; and from Medina to Ankara. Additional connecting flights include the cities of Dammam, Yanbu and Al Qassim, all travelling to Trabzon. There will be others from Kuwait, Erbil in Baghdad, Sulaymaniyah in Iraq and Amman in Jordan.

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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.”