Australia 'welcomes' an invitation from France to take part in a February meeting of Indo-Pacific foreign ministers, but did not say if Foreign Minister Marise Payne would attend. AFP
Australia 'welcomes' an invitation from France to take part in a February meeting of Indo-Pacific foreign ministers, but did not say if Foreign Minister Marise Payne would attend. AFP
Australia 'welcomes' an invitation from France to take part in a February meeting of Indo-Pacific foreign ministers, but did not say if Foreign Minister Marise Payne would attend. AFP
Australia 'welcomes' an invitation from France to take part in a February meeting of Indo-Pacific foreign ministers, but did not say if Foreign Minister Marise Payne would attend. AFP

Australia plans to join WTO consultations on EU-China trade dispute


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Australia will seek to be included in consultations about a trade dispute between the European Union and China launched by the EU at the World Trade Organisation, the Australian trade minister said on Saturday.

Thursday's EU challenge accuses China of discriminatory trade practices against Lithuania, saying they threatened the integrity of the single market.

"Australia has a substantial interest in the issues raised in the dispute brought by the European Union against China ... and will request to join these consultations," Trade Minister Dan Tehan said.

China, which regards self-governed Taiwan as its own territory, has downgraded ties with Lithuania and pushed firms to sever links with the Baltic nation of 2.8 million people after it allowed Taiwan to open a de facto embassy in Vilnius.

Its strictures include a refusal to clear Lithuanian goods through Chinese customs, rejection of import applications from Lithuania and pressure on EU firms to remove Lithuanian content from supply chains when exporting to China.

Relations between Australia and China, its top trade partner, soured after Canberra banned Huawei Technologies from its 5G broadband network in 2018, toughened laws against foreign political interference, and urged an independent investigation into the origins of Covid-19.

Beijing responded by freezing ministerial contacts and imposing tariffs on several Australian commodities, such as coal, beef and barley.

Australia has filed two WTO complaints in the past 18 months over China's duties on imports of bottled wine and barley.

In a statement on Saturday, the foreign ministry said Australia "welcomes" an invitation from France to take part in a February meeting of Indo-Pacific foreign ministers.

"Australia greatly values cooperation with France and with Europe, including in the Indo-Pacific," it said in an e-mailed statement, without saying if Foreign Minister Marise Payne would attend.

Australia's relations with France, which holds the rotating six-month presidency of the EU Council, have also soured after Canberra signed a security pact last year with Britain and the United States, dubbed Aukus, scrapping a multi-billion-dollar submarine deal with France.

The pact, widely viewed as an attempt to shore up regional military muscle in the face of China's growing presence, riled Beijing, but also caused fury in France.

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Company: Justmop.com

Date started: December 2015

Founders: Kerem Kuyucu and Cagatay Ozcan

Sector: Technology and home services

Based: Jumeirah Lake Towers, Dubai

Size: 55 employees and 100,000 cleaning requests a month

Funding:  The company’s investors include Collective Spark, Faith Capital Holding, Oak Capital, VentureFriends, and 500 Startups. 

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Company profile

Company name: Suraasa

Started: 2018

Founders: Rishabh Khanna, Ankit Khanna and Sahil Makker

Based: India, UAE and the UK

Industry: EdTech

Initial investment: More than $200,000 in seed funding

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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MWTC info

Tickets to the MWTC range from Dh100 and can be purchased from www.ticketmaster.ae or by calling 800 86 823 from within the UAE or 971 4 366 2289 from outside the country and all Virgin Megastores. Fans looking to attend all three days of the MWTC can avail of a special 20 percent discount on ticket prices.

Updated: January 29, 2022, 12:02 PM