Abu Dhabi has announced plans to launch a strategy for blockchain and virtual assets strategy that aligns with the emirate’s overall economic strategy, the Abu Dhabi Blockchain and Virtual Assets Committee said on Thursday.
The committee held its first meeting, led by Mohamed Al Shorafa, chairman of the Abu Dhabi Department of Economic Development and the Securities and Commodities Authority, to discuss strategy.
“The formation of Abu Dhabi’s Blockchain and Virtual Assets Committee reflects our leadership's farsighted vision and approach, which enabled Abu Dhabi to nurture a supportive business environment, unparalleled connectivity and infrastructure and an entrepreneurial mindset that presents investors with growth opportunities,” Mr Al Shorafa said.
The committee aims to improve Abu Dhabi’s competitiveness in blockchain and the virtual asset space, as well as co-ordinate efforts of entities active in the industry, the Abu Dhabi Media Office said.
It will also liaise with regulators and promote compliance among industry participants with global standards and regulatory requirements, "particularly AML/CFT [anti-money laundering/combating the financing of terrorism] regulations, and supporting exchange of information and best practices".
The strategy-making comprises representatives of major entities and stakeholders in the field, including Dhaher Al Mheiri, chief executive of Abu Dhabi Global Market Registration Authority, Wai Lum Kwok, senior executive director authorisation at ADGM, Mohamed Kaissi, director of strategic projects at ADQ, Faisal Al Hammadi, executive director incubation at ADQ, and Mohamed Al Ramahi, chief executive of Masdar.
It also includes Nikolas Meitanis, adviser at Masdar chief executive office, Ibrahim Ajami, head of ventures and growth at Mubadala, Abdulla Al Shamsi, director general of Abu Dhabi Investment Office, and Maryam Buti Al Suwaidi, chief executive of Securities and Commodities Authority.
In its first meeting, the committee emphasised the importance of regulating blockchain and virtual asset activities to comply with AML/CFT, international and local rules and regulations, and building an ecosystem that is safe, sound and transparent, which will help to build trust and attract more companies to Abu Dhabi.
“The committee is bringing together all the relevant stakeholders to build a robust, credible and comprehensive regulatory and business ecosystem that addresses key risks and major governance issues, such as AML/CFT, investor protection, tech governance, and custody risk, to promote blockchain and virtual assets,” Mr Al Shorafa said.
“This will allow us to capitalise on blockchain technology and virtual assets to achieve Abu Dhabi’s aspirations, and the priority areas for this will be growth clusters including AgriTech, FinTech, healthcare and biopharma, energy, tourism and ICT as we aim to foster businesses in these sectors to expand and accelerate.”
The UAE government has taken concrete steps to establish a strong digital economy and make use of the advantages provided by digital transformation.
The Emirates has been in the forefront of recognising the need for a regulatory framework for the development of blockchain and virtual assets.
In March, Dubai adopted the first law of its kind in the country that regulates virtual assets and set up the Dubai Virtual Asset Regulatory Authority to regulate the sector throughout the emirate, including special development zones and free zones, excluding the Dubai International Financial Centre.
In 2018, the Financial Services Regulatory Authority, the regulator of Abu Dhabi Global Market, launched a comprehensive virtual asset framework for the trade of virtual assets by businesses, including multilateral trading facilities, custodians and brokers.
These regulations have been continuously refined to mitigate risks and make the ADGM an attractive space for home-grown, regional and international companies.
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.”
Nepotism is the name of the game
Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad.
BOSH!'s pantry essentials
Nutritional yeast
This is Firth's pick and an ingredient he says, "gives you an instant cheesy flavour". He advises making your own cream cheese with it or simply using it to whip up a mac and cheese or wholesome lasagne. It's available in organic and specialist grocery stores across the UAE.
Seeds
"We've got a big jar of mixed seeds in our kitchen," Theasby explains. "That's what you use to make a bolognese or pie or salad: just grab a handful of seeds and sprinkle them over the top. It's a really good way to make sure you're getting your omegas."
Umami flavours
"I could say soya sauce, but I'll say all umami-makers and have them in the same batch," says Firth. He suggests having items such as Marmite, balsamic vinegar and other general, dark, umami-tasting products in your cupboard "to make your bolognese a little bit more 'umptious'".
Onions and garlic
"If you've got them, you can cook basically anything from that base," says Theasby. "These ingredients are so prevalent in every world cuisine and if you've got them in your cupboard, then you know you've got the foundation of a really nice meal."
Your grain of choice
Whether rice, quinoa, pasta or buckwheat, Firth advises always having a stock of your favourite grains in the cupboard. "That you, you have an instant meal and all you have to do is just chuck a bit of veg in."
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
