Petr Klimes is the head of marketing at Abu Dhabi Islamic Bank. The 44-year-old father of three, from the Czech Republic, moved to the UAE three years ago.
How would you describe your financial journey?
When I was growing up in the Czech Republic, economic opportunities were limited. After 1989, the situation improved as the country opened up to the world. Not only could we travel internationally but we were also able to pursue better career opportunities at home and abroad. After I graduated, I joined an international bank that had opened in Prague and started to generate good income for my family that improved as my career progressed. But I also found my life partner then, got married, had three children, bought a house and a car and started the cycle of ever-larger expenses and responsibilities. It took many years before our family made the transition from a debt-driven financial situation to saving and planning for our future. Things further improved when I moved to Saudi Arabia in 2005 and three years later to the UAE, where I enjoy living and working tremendously.
Are you a spender or saver?
I don’t really like shopping – but I’m not a heavy saver either, and neither is my wife. So we’ve had to learn how to save and it wasn’t easy. For example, we enjoy going out and the fantastic dining options in Abu Dhabi. Living in the UAE as an expat, you need to learn how to balance enjoying the lifestyle and saving for your future.
Have you made financial mistakes along the way?
Oh yes. Earlier in my career I was promoted, I was so proud and I decided to buy a new apartment. The price was high, but we thought “so what?” So I took out home finance, but it turned out we needed even more money for some reconstruction, so I also took out personal finance. Despite being a banker, I somehow didn’t do the maths and just got carried away. Then the reality hit hard. I had hardly any money left at the end of the month, and I ended up maxing out my card just to live. Looking back on it, my bank didn’t ask any of the right questions and didn’t provide me with any advice. I’ve realised many banks are like that, and learnt from the experience. So after I joined Abu Dhabi Islamic Bank as a head of marketing, my colleagues and I launched the first financial education programme in the UAE, called Smartmoney, to help people take the right financial decisions. We set up a microsite and do roadshows, aimed particularly at young people.
What is your philosophy towards money?
I want to believe there is a limit to the amount of money I would want to live comfortably and that I wouldn’t be endlessly motivated to want more. But it’s very difficult to say how much that is, and how you feel when you get there. I also believe happiness comes from a balance – between enjoying today and planning for tomorrow, between risk and safety in your investments. I don’t really believe in financial speculation as this does not create real value. My personal hero is Muhammad Yunus – a Bangladeshi social entrepreneur – and other people that have used financial services to do good and to improve the lives of others.
If you won Dh1 million, what would you do with it?
I would put 50 per cent of it in our kids’ education fund, and 30 per cent in our pension fund. I’d then donate 10 per cent to charity and to some other members of the family that might need it, and I’d use the rest to go on some awesome family vacation.
What has been your biggest financial lesson?
Don’t invest in things you don’t understand. Stay true to who you are and what you believe in.
What do you enjoy spending on?
I love our family home in the Czech Republic that we have built by a river and that we seem to keep renovating. I enjoy travelling around the world, snowboarding, off-roading in the desert and also spending time with family and friends.
mkassem@thenational.ae
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WORLD CUP FINAL
England v South Africa
Yokohama International Stadium, Tokyo
Saturday, kick-off 1pm (UAE)
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
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What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
'Gehraiyaan'
Director:Shakun Batra
Stars:Deepika Padukone, Siddhant Chaturvedi, Ananya Panday, Dhairya Karwa
Rating: 4/5
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3.5/5
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.”
The bio
His favourite book - 1984 by George Orwell
His favourite quote - 'If you think education is expensive, try ignorance' by Derek Bok, Former President of Harvard
Favourite place to travel to - Peloponnese, Southern Greece
Favourite movie - The Last Emperor
Favourite personality from history - Alexander the Great
Role Model - My father, Yiannis Davos
More on animal trafficking
Gulf Under 19s final
Dubai College A 50-12 Dubai College B
Name: Brendalle Belaza
From: Crossing Rubber, Philippines
Arrived in the UAE: 2007
Favourite place in Abu Dhabi: NYUAD campus
Favourite photography style: Street photography
Favourite book: Harry Potter
Dubai works towards better air quality by 2021
Dubai is on a mission to record good air quality for 90 per cent of the year – up from 86 per cent annually today – by 2021.
The municipality plans to have seven mobile air-monitoring stations by 2020 to capture more accurate data in hourly and daily trends of pollution.
These will be on the Palm Jumeirah, Al Qusais, Muhaisnah, Rashidiyah, Al Wasl, Al Quoz and Dubai Investment Park.
“It will allow real-time responding for emergency cases,” said Khaldoon Al Daraji, first environment safety officer at the municipality.
“We’re in a good position except for the cases that are out of our hands, such as sandstorms.
“Sandstorms are our main concern because the UAE is just a receiver.
“The hotspots are Iran, Saudi Arabia and southern Iraq, but we’re working hard with the region to reduce the cycle of sandstorm generation.”
Mr Al Daraji said monitoring as it stood covered 47 per cent of Dubai.
There are 12 fixed stations in the emirate, but Dubai also receives information from monitors belonging to other entities.
“There are 25 stations in total,” Mr Al Daraji said.
“We added new technology and equipment used for the first time for the detection of heavy metals.
“A hundred parameters can be detected but we want to expand it to make sure that the data captured can allow a baseline study in some areas to ensure they are well positioned.”
Poland Statement
All people fleeing from Ukraine before the armed conflict are allowed to enter Poland. Our country shelters every person whose life is in danger - regardless of their nationality.
The dominant group of refugees in Poland are citizens of Ukraine, but among the people checked by the Border Guard are also citizens of the USA, Nigeria, India, Georgia and other countries.
All persons admitted to Poland are verified by the Border Guard. In relation to those who are in doubt, e.g. do not have documents, Border Guard officers apply appropriate checking procedures.
No person who has received refuge in Poland will be sent back to a country torn by war.
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