The UAE is keen to boost trade with the Association of South-East Asian Nations and create innovative ecosystems that foster long-term sustainable partnerships with the regional bloc.
The opportunity comes at a "critical juncture" as the world continues to recover from coronavirus-induced slowdown and at a time of growing trade between the GCC and 10-member Asean bloc, that is set to reshape the future of global trade and connectivity.
The remarks were made by Reem Al Hashimy, UAE Minister of State for International Co-operation, said at the opening of the first Global Business Forum (GBF) Asean at Expo 2020 Dubai on Wednesday.
"We convene [at] a critical juncture, a moment at which we must embrace the opportunity that comes with our very nature, which is to be resilient, responsible and always seek to lead by example," Ms Al Hashimy said.
"If the pandemic laid bare the fragility of traditional economic systems, it also underscored the potential of those accelerating their adoption of digitisation."
The inaugural GBF Asean meeting comes before the January 1 enforcement of the Regional Economic Comprehensive Partnership (RCEP), which is expected to be the world's largest free trade deal.
It will cover $26.2 trillion of global output and a market of 2.2 billion people, and add about $186bn to global gross domestic product within nine years.
The Asean bloc includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Non-Asean signatories to the RCEP include Australia, China, Japan and New Zealand.
"The world has witnessed the unprecedented trend of deepening economic integration, along with globalisation and trade liberalisation," Nguyen Hong Dien, Vietnam's Minister of Industry and Trade, said at the event.
"Asean stays firm with the commitments of economic integration, taking the promotion of regional and-international economic co-operation as a tool to mitigate the negative impacts of Covid-19 and promote post-pandemic economic recovery."
The digital economy will be critical to driving growth in Asean's key sectors.
Executives in transport and logistics (90 per cent), agriculture and food (90 per cent), retail and e-commerce (87 per cent) and financial services and FinTech (83 per cent) were most optimistic about revenue expansion in 2022, according to a survey released on Wednesday by the Economist Intelligence Unit and the Dubai Chamber.
The growing use of digital platforms is expected to enhance efficiency and help companies to deliver innovative services to businesses and consumers.
A greater share of respondents expect most of their revenue to be secured through online channels in 2022 (67 per cent), compared with 2019 (26 per cent), it said.
The global economic slowdown due to the Covid-19 pandemic caused real GDP in the Asean region to drop by 4.3 per cent in 2020, according to EIU estimates.
Contraction in trade activity was modest, with total exports from Asean having fallen to $1.39tn in 2020, from $1.42tn the previous year.
Although more than 40 per cent of respondents reported a contraction in revenue in last year, the revenue of 32 per cent expanded.
However, 70 per cent of those in health care, 67 per cent in financial services and FinTech and 50 per cent in professional services and marketing said revenue expanded in 2020, according to the study.
UAE entities have signed numerous partnerships with their Asean peers, driving investment across smart city development, knowledge transfer, healthcare delivery, technology, manufacturing, food and beverage, retail, e-commerce, ports and logistics, FinTech and hydrocarbon storage, Ms Al Hashimy said.
We convene [at] a critical juncture. If the pandemic laid bare the fragility of traditional economic systems, it also underscored the potential of those accelerating their adoption of digitisation
Reem Al Hashimy,
UAE Minister of State for International Co-operation
"The nations of the Gulf and South-East Asia are leading proponents of these forward-thinking arts. We are entrepreneurs and we are problem solvers, always seeking new perspectives to satisfy curiosity and spark creativity," she said.
The Emirates has invested about $10bn since 2016 in Asean markets, accounting for more than 70 per cent of total investments from the Gulf.
Food and beverage imports from the bloc to the UAE topped $800 million in 2020. The bloc also accounted for more than 70 per cent of Dubai's palm oil imports and about a third of its coffee and tea.
The number of Asean companies registered with the chamber stands at more than 3,300, up 35.5 per cent since 2018, with non-oil trade between Dubai and Asean nations in the last five years at $110bn, Abdulaziz Al Ghurair, chairman of Dubai Chamber, said in his speech.
"Yet, there is huge potential to expand bilateral trade further and tap into existing synergies. In order for this to happen, we must work together to remove trade barriers, facilitate the ease of doing business and identify new areas where we can align our ambitions.”
The specs
Engine: 3.0-litre 6-cyl turbo
Power: 374hp at 5,500-6,500rpm
Torque: 500Nm from 1,900-5,000rpm
Transmission: 8-speed auto
Fuel consumption: 8.5L/100km
Price: from Dh285,000
On sale: from January 2022
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
Is it worth it? We put cheesecake frap to the test.
The verdict from the nutritionists is damning. But does a cheesecake frappuccino taste good enough to merit the indulgence?
My advice is to only go there if you have unusually sweet tooth. I like my puddings, but this was a bit much even for me. The first hit is a winner, but it's downhill, slowly, from there. Each sip is a little less satisfying than the last, and maybe it was just all that sugar, but it isn't long before the rush is replaced by a creeping remorse. And half of the thing is still left.
The caramel version is far superior to the blueberry, too. If someone put a full caramel cheesecake through a liquidiser and scooped out the contents, it would probably taste something like this. Blueberry, on the other hand, has more of an artificial taste. It's like someone has tried to invent this drink in a lab, and while early results were promising, they're still in the testing phase. It isn't terrible, but something isn't quite right either.
So if you want an experience, go for a small, and opt for the caramel. But if you want a cheesecake, it's probably more satisfying, and not quite as unhealthy, to just order the real thing.
Baby Driver
Director: Edgar Wright
Starring: Ansel Elgort, Kevin Spacey, Jamie Foxx, Lily James
Three and a half stars
Keep it fun and engaging
Stuart Ritchie, director of wealth advice at AES International, says children cannot learn something overnight, so it helps to have a fun routine that keeps them engaged and interested.
“I explain to my daughter that the money I draw from an ATM or the money on my bank card doesn’t just magically appear – it’s money I have earned from my job. I show her how this works by giving her little chores around the house so she can earn pocket money,” says Mr Ritchie.
His daughter is allowed to spend half of her pocket money, while the other half goes into a bank account. When this money hits a certain milestone, Mr Ritchie rewards his daughter with a small lump sum.
He also recommends books that teach the importance of money management for children, such as The Squirrel Manifesto by Ric Edelman and Jean Edelman.
Farage on Muslim Brotherhood
Nigel Farage told Reform's annual conference that the party will proscribe the Muslim Brotherhood if he becomes Prime Minister.
"We will stop dangerous organisations with links to terrorism operating in our country," he said. "Quite why we've been so gutless about this – both Labour and Conservative – I don't know.
“All across the Middle East, countries have banned and proscribed the Muslim Brotherhood as a dangerous organisation. We will do the very same.”
It is 10 years since a ground-breaking report into the Muslim Brotherhood by Sir John Jenkins.
Among the former diplomat's findings was an assessment that “the use of extreme violence in the pursuit of the perfect Islamic society” has “never been institutionally disowned” by the movement.
The prime minister at the time, David Cameron, who commissioned the report, said membership or association with the Muslim Brotherhood was a "possible indicator of extremism" but it would not be banned.
if you go
The flights
Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.
The hotel
Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.
The tour
Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
La Mer lowdown
La Mer beach is open from 10am until midnight, daily, and is located in Jumeirah 1, well after Kite Beach. Some restaurants, like Cupagahwa, are open from 8am for breakfast; most others start at noon. At the time of writing, we noticed that signs for Vicolo, an Italian eatery, and Kaftan, a Turkish restaurant, indicated that these two restaurants will be open soon, most likely this month. Parking is available, as well as a Dh100 all-day valet option or a Dh50 valet service if you’re just stopping by for a few hours.
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
The Matrix Resurrections
Director: Lana Wachowski
Stars: Keanu Reeves, Carrie-Anne Moss, Jessica Henwick
Rating:****
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 President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
