Malaysia, one of the fastest growing economies in the Association of South-East Asian Nations, is on track to reach a free trade agreement with the UAE by the end of the year and hopes to explore a broader trade treaty with the wider GCC economic bloc, a senior official said.
Malaysia has “excellent relations with the Middle East” and plans to further boost ties with Arab economies, the country's Minister of Investment, Trade and Industry, Tengku Zafrul Aziz, told the ninth annual Belt and Road summit in Hong Kong.
“This has been the case regardless of the ideological queue of the government in power [in Malaysia], which indicates how strategic the region is to us,” Mr Aziz said on Thursday. “For Malaysia, we are continuing discussions with the GCC for an FTA, and we are on track to conclude an FTA with the UAE by end of the year on a wider scale.”
[Malaysian Prime Minister] Anwar Ibrahim has proposed an Asean-GCC FTA, and this is something that needs to be explored seriously
Tengku Zafrul Aziz,
Malaysia's Investment, Trade and Industry Minister
The UAE, the Arab world’s second largest economy, and Malaysia initiated talks for a comprehensive economic partnership agreement (Cepa) last year and have held several rounds of discussions.
Mr Aziz’s latest comments come after Dr Thani Al Zeyoudi, UAE Minister of State for Foreign Trade, visited Malaysia in June, where the two sides held talks to explore trade and investment opportunities in high-growth sectors such as technology, manufacturing and services.
“Our nations both recognise the developmental importance of open, rules-based trade and are committed to ensuring [that] our private sectors are able to maximise the opportunities available in each other’s economies,” state news agency Wam quoted Dr Al Zeyoudi as saying at the time. “We see considerable potential for greater trade and investment flows … and we look forward to making progress on our Cepa negotiations."
In 2023, the two countries reported bilateral non-oil trade worth $4.7 billion, maintaining the record levels achieved in 2022.
UAE trade treaties
The UAE is actively seeking trade, investment and economic co-operation treaties with nations around the world as it pursues its national economic goal of Dh4 trillion ($1.1 trillion) in foreign trade by 2031. The country is pushing to diversify its economic base and has signed a series of Cepas with fast-growing economies in Asia, the Middle East and Africa, which have already provided a boost to the UAE's non-oil foreign trade.
The Emirates has signed Cepas with Indonesia, the biggest economy in the Asean trading bloc, as well as Cambodia. The UAE is continuing trade discussions with other Asean members, including the Philippines and Vietnam.
In the first six months of this year, the UAE’s non-oil foreign trade hit a record Dh1.4 trillion as a 25 per cent year-on-year surge in non-oil exports helped the aggregate non-oil foreign trade jump 11.2 per cent on an annual basis, the latest government data shows.
The UAE's Cepa programme is expected to grow the country's exports by 33 per cent and contribute more than Dh153 billion to its gross domestic product by 2031. The country, which aims to sign 26 Cepa deals, has already signed trade treaties with India, Turkey, Israel, Cambodia and Georgia, while talks are under way with Serbia, New Zealand and Ecuador.
Boosting GCC trade ties
Hong Kong on Monday said it was exploring options, including free trade agreements, with the UAE and the Gulf to boost trade and investment ties with economies in the region. The pacts being considered include investment protection treaties, as well as economic co-operation deals and avoidance of double taxation agreements, Dr Patrick Lau, deputy executive director of Hong Kong Trade Development Council, told The National at the Belt and Road Summit.
Malaysia also called for a GCC-Asean trade treaty, which will benefit economies in the two blocs. “[Malaysian Prime Minister] Anwar Ibrahim has proposed an Asean-GCC FTA, and this is something that needs to be explored seriously,” Mr Aziz said during his keynote speech in Hong Kong.
Several major global economies are also pursuing trade deals with the Gulf region. Trade and investment relations between China, the world’s second-largest economy, and the GCC, which is home to a third of the world's proven oil reserves, would receive a major boost from a potential FTA.
The UK is also in talks with the GCC over an FTA, while a free trade treaty between the Gulf economies and Turkey is expected to create a $2.4 trillion trade opportunity.
Abu Dhabi Sustainability Week
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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.”
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
The Specs
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Engine 2.9-litre, twin-turbo V6
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Power 503bhp
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Disturbing%20facts%20and%20figures
%3Cp%3E%3Cstrong%3E51%25%3C%2Fstrong%3E%20of%20parents%20in%20the%20UAE%20feel%20like%20they%20are%20failing%20within%20the%20first%20year%20of%20parenthood%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E57%25%20vs%2043%25%3C%2Fstrong%3E%20is%20the%20number%20of%20mothers%20versus%20the%20number%20of%20fathers%20who%20feel%20they%E2%80%99re%20failing%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E28%25%3C%2Fstrong%3E%20of%20parents%20believe%20social%20media%20adds%20to%20the%20pressure%20they%20feel%20to%20be%20perfect%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E55%25%3C%2Fstrong%3E%20of%20parents%20cannot%20relate%20to%20parenting%20images%20on%20social%20media%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E67%25%3C%2Fstrong%3E%20of%20parents%20wish%20there%20were%20more%20honest%20representations%20of%20parenting%20on%20social%20media%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E53%25%3C%2Fstrong%3E%20of%20parents%20admit%20they%20put%20on%20a%20brave%20face%20rather%20than%20being%20honest%20due%20to%20fear%20of%20judgment%3C%2Fp%3E%0A%3Cp%3E%3Cspan%20style%3D%22font-size%3A%2014px%3B%22%3ESource%3A%20YouGov%3C%2Fspan%3E%3C%2Fp%3E%0A
Gifts exchanged
- King Charles - replica of President Eisenhower Sword
- Queen Camilla - Tiffany & Co vintage 18-carat gold, diamond and ruby flower brooch
- Donald Trump - hand-bound leather book with Declaration of Independence
- Melania Trump - personalised Anya Hindmarch handbag
Company profile
Name: Oulo.com
Founder: Kamal Nazha
Based: Dubai
Founded: 2020
Number of employees: 5
Sector: Technology
Funding: $450,000
Sholto Byrnes on Myanmar politics
UAE currency: the story behind the money in your pockets
The specs
Engine: 4.0-litre, six-cylinder
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UAE currency: the story behind the money in your pockets
How Alia's experiment will help humans get to Mars
Alia’s winning experiment examined how genes might change under the stresses caused by being in space, such as cosmic radiation and microgravity.
Her samples were placed in a machine on board the International Space Station. called a miniPCR thermal cycler, which can copy DNA multiple times.
After the samples were examined on return to Earth, scientists were able to successfully detect changes caused by being in space in the way DNA transmits instructions through proteins and other molecules in living organisms.
Although Alia’s samples were taken from nematode worms, the results have much bigger long term applications, especially for human space flight and long term missions, such as to Mars.
It also means that the first DNA experiments using human genomes can now be carried out on the ISS.
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
Company%20Profile
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