Abu Dhabi Global Market hires Dhaher Almheiri for development and oversight role



Abu Dhabi Global Market has unveiled its latest high-profile hire with the appointment of the former DIFC executive director Dhaher Mohammed bin Dhaher Almheiri as the head of the centre’s registration bureau.

Mr Almheiri will be responsible in his new position for the development and oversight of the registration process for both financial and non-financial services companies established in the free zone.

He will also oversee the registration of property and members’ compliance to laws and non-financial services-related regulations.

“This is a very exciting time for Abu Dhabi and I am honoured to be able to take part in its remarkable growth story through Abu Dhabi Global Market, which has all the essential building blocks to become a key player in the global financial world,” said Mr Almheiri.

“I am looking forward to the opportunities that lie ahead as we build a robust and business- friendly registration process that meets our clients’ requirements and measures against top international financial centres globally.”

Mr Almheiri is ADGM’s third high-profile appointment in as many months. In October the free zone announced the appointment of Richard Teng, formerly chief regulatory officer of Singapore’s stock exchange, as chief executive of its regulatory authority.

Last month Sir Richard Sants, former chief executive of the UK’s Financial Services Authority and head of compliance at Barclays, was hired as chief adviser to ADGM’s chairman Ahmed Ali Al Sayegh on a short-term basis.

“We are delighted to have Dhaher join our team and we welcome him to Abu Dhabi Global Market,” said Mr Al Sayegh. “Dhaher has a solid track record in both the financial and non-financial services industry and a deep understanding of operational best practice.”

“[He] will be instrumental in delivering a customer-focused, efficient, business-friendly and seamless registration process, a key component of our core value proposition to our member institutions as we prepare to receive our first licence application later this year.”

The financial centre two weeks ago launched a public consultation on the first tranche of its operating regulations, with comment open until February 5 on draft regulations on subjects including the application of English law, companies and operating regulations, real property and insolvency regulations.

A second tranche of regulation is set to be released for consultation in the coming weeks.

jeverington@thenational.ae

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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.”

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