The inaugural Investopia summit will prepare the world for a post-pandemic era, said Abdulla bin Touq, UAE Minister of Economy.
“We are proud to start a discussion to drive global investment, accelerate innovation and contribute to the growth of future generations,” the minister said, opening the summit along side the World Government Summit in Dubai on Monday.
“We want to create a dynamic business ecosystem where today’s economies grow and tomorrow’s are born. We have come together to mark a new beginning.”
We want to create a dynamic business ecosystem where today’s economies grow and tomorrow’s are born
Abdulla bin Touq,
Minister of Economy
Investopia is one of the events within the first set of the Projects of the 50 developmental and economic initiative announced by the government in 2021.
It is the first platform that unifies all national investment opportunities and development projects from all emirates in line with the initiative.
“Future generations will be living in a world that is very different to the one we are accustomed to. It is essential that we prepare ourselves and our children for that new world,” Mr bin Touq said.
As the investment world is on the hunt for returns, the future lies in the global investment community to grow together as one, he added.
The Investopia summit explores “how global growth hubs are shifting and how globalisation is changing in the midst of geopolitical developments”, the minister said.
Although the world has seen a strong recovery from the coronavirus, rising inflation has led to higher food, energy and fertiliser prices which are hitting the developing world harder as they have limited fiscal space, Rebeca Grynspan, secretary-general of the United Nations Conference on Trade and Development, said during a separate panel discussion at the Investopia summit.
“A total of 104 countries are net importers of food. Russia and Ukraine account for 30 per cent of global wheat production and 20 per cent of barley and maize output,” she said.
“The UN projects that there will be an increase of 30 million undernourished people in the world on top of Covid-19 and climate change. The price rises will hit the vulnerable the most.”
The world will see more regionalisation, shorter global value chains and more diversification of sources of input, the Unctad official said.
Meanwhile, Anthony Scaramucci, founder and managing partner, SkyBridge Capital, said that “globalisation is very far from dead” and the global supply chain will be disrupted less in 2023.
“We need each more now than before. It’s easy to be pessimistic about the global economic outlook, but there is good reason to be positive with the introduction of artificial intelligence, vertical farming and biotechnology.”
The world will see more regionalisation, shorter global value chains and more diversification of sources of input
Rebeca Grynspan,
secretary-general of Unctad
While world leaders have come together to optimally allocate resources, young people are using technology to decentralise how the world functions, he said.
“For instance, blockchain takes power from people who use it in a malevolent way.”
Greece had the second-largest growth in gross domestic product in the EU in 2021, Spyridon-Adonis Georgiadis, Minister of Development and Investment, Greece, said at the summit.
“We were expecting economic growth above 5 per cent in 2022 before Russia’s invasion of Ukraine. Now, we expect growth in the range of 3.5 per cent to 4 per cent,” he said.
Greece recorded strong foreign direct investment in 2021 in the areas of renewable energy, logistics, real estate, tourism, agriculture and manufacturing, the minister added.
“We are not so dependent on Russia’s natural gas, so the impact of energy prices on our economy is not large.”
More from Armen Sarkissian
The Sheikh Zayed Future Energy Prize
This year’s winners of the US$4 million Sheikh Zayed Future Energy Prize will be recognised and rewarded in Abu Dhabi on January 15 as part of Abu Dhabi Sustainable Week, which runs in the capital from January 13 to 20.
From solutions to life-changing technologies, the aim is to discover innovative breakthroughs to create a new and sustainable energy future.
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HAJJAN
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MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
MATCH INFO
Syria v Australia
2018 World Cup qualifying: Asia fourth round play-off first leg
Venue: Hang Jebat Stadium (Malacca, Malayisa)
Kick-off: Thursday, 4.30pm (UAE)
Watch: beIN Sports HD
* Second leg in Australia scheduled for October 10
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.”
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
KILLING OF QASSEM SULEIMANI
Tuesday results:
- Singapore bt Malaysia by 29 runs
- UAE bt Oman by 13 runs
- Hong Kong bt Nepal by 3 wickets
Final:
Thursday, UAE v Hong Kong
