DP World head, Sultan bin Sulayem, told the WEF that staff at the company adhered to all sanitation regulations from the outset to ensure operations could continue. Courtesy of World Economic Forum
DP World head, Sultan bin Sulayem, told the WEF that staff at the company adhered to all sanitation regulations from the outset to ensure operations could continue. Courtesy of World Economic Forum
DP World head, Sultan bin Sulayem, told the WEF that staff at the company adhered to all sanitation regulations from the outset to ensure operations could continue. Courtesy of World Economic Forum
DP World head, Sultan bin Sulayem, told the WEF that staff at the company adhered to all sanitation regulations from the outset to ensure operations could continue. Courtesy of World Economic Forum

DP World chief urges UK to immunise port staff to protect global vaccine supply


Alice Haine
  • English
  • Arabic

DP World chief Sultan bin Sulayem told the World Economic Forum on Friday he had urged the British government to vaccinate frontline port staff to ensure Covid-19 vaccines could safely “reach everyone”.

Mr bin Sulayem, group chairman and chief executive of DP World, which owns two deep water ports in the UK -- DP World Southampton and DP World London Gateway -- said he met with transport minister Grant Shapps via zoom to discuss vaccinating staff working at the ports.

“In the UK, they will only vaccinate people who are elderly and I told them ‘please include us in the ports’" to ensure cargo can still move freely, Mr bin Sulayem told a virtual session at the Forum.

Mr bin Sulayem said it is important to vaccinate those working in supply networks to ensure there is enough security in the system to actually deliver the vaccine.

“When this pandemic came, one of the big issues for us was how we continue to keep our operations open. It was really crucial for us to make sure cargo is moving and so the first thing we did was to comply with every regulation regarding sanitation and wearing masks," he said.

“We adhered to it and we told our people it’s a must … and we managed to do that very well because we did not close.”

Discussing the challenges of distributing the vaccine globally, Mr bin Sulayem said a collaborative effort is key to ensure it reaches developing nations as well as wealthy countries.

“Nine billion vaccines have already been reserved by the wealthy countries. That’s only 14 or 15 per cent of the world’s population,” he said. “For this pandemic we need to make sure it reaches everybody.”

Mr bin Sulayem said the pandemic has made it “difficult to find empty sea containers” for the first time in the industry, with companies across the globe trying to source them to ship the vaccine.

“Even if we have the vaccine for everybody, we cannot distribute it to everybody. It needs a collaborative effort,” he said.

Mr Sulayem said DP World has invested “a lot of money in logistic ability” over the last four years -- in people, companies and facilities -- a move that now makes it the largest operator in the sector in a number of countries, including India, China and the UK.

It has also added to its investments in Africa to ensure developing nations have equal access to the vital medicine.

“What I fear is that many wealthy countries will reserve the vaccines, and it will not be available for other countries,” he said.

“In Africa and Latin America, we have two problems: they cannot afford the vaccine and even if they have the vaccine, it's very difficult to get it to them.”

To ensure people across Africa can access the vaccine, he said DP World has invested in a logistics park in Rwanda so that it can supply Burundi and Malawi, as well as parts of Congo, Tanzania, Kenya and Uganda.

The company plans further parks in countries such as Mali and Chad to ensure they can also store the vaccines at the correct temperature.

His comments come two days after the Dubai ports and logistics company offered free vaccine transport and storage to Unicef, the UN's children's organisation, to help distribute Covid-19 vaccines to low and middle-income countries.

The new partnership – with a multi-million-dollar value – is the largest to date to support Unicef's lead role as part of Covax.

Covax, which comprises 190 countries and the World Health Organisation, is an initiative to promote equitable access to vaccines and deliver two billion doses to countries most in need by the end of 2021.

On Wednesday, Mr bin Sulayem described the vaccine’s distribution process as “humanity's biggest logistics challenge since the end of the Second World War”.

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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