Sultan Al Jaber: capability, crisis management and connectivity key amid Covid-19 crisis


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The ability to keep operating, crisis management levels and connectivity with your people are being put to the test amid the Covid-19 pandemic as organisations learn "something new every day and learning in real time", said Dr Sultan Al Jaber, Minister of State and Adnoc Group chief executive.

The first responsibility of any chief executive is to protect the health and wellbeing of employees and to ensure business continuity at all times and under any circumstances, he said during an Adnoc virtual majlis discussion about the current crisis.

"The foundation of the UAE’s response has been comprehensive testing. At the same time, the UAE believes that international cooperation is key to managing the crisis. So we are staying connected to the rest of the world through health diplomacy, delivering aid and personal protective equipment (PPE) to more than 47 countries so far, when they need it and where they need it most," Dr Al Jaber said. More than 1.5 million coronavirus tests have been carried out to date in the country.

The lessons learned so far from the crisis include how capabilities are being tested every day. Can you keep your "people safe and their operations running smoothly", Dr Al Jaber said.

"Leaders are being measured against how well they manage a crisis… ensuring their organisations can run under stress. And then there is connectivity…How clearly leaders communicate to their people what they need to do to stay safe," Dr Al Jaber said.

Abu Dhabi has issued a set of guidelines to ensure the safe return of employees heading back to offices, retail outlets and others places of work in the city.

The instructions aim to “promote business continuity” for private companies while ensuring the “health and safety of employees”, as more people start heading back to work over the coming weeks and months.

Dr Al Jaber said that the need for remote working during the crisis has showed that "staying connected through digital technology has, in fact, been vital and extremely important. Our people have logged over 30 million minutes of video meetings over the last two months… and I am personally very much in constant contact with my people and my colleagues and my managers across all operations in different sites and platforms."

He said that "conveying a positive, optimistic and credible way forward… with humility and honesty… is, in fact, very essential. And it is okay to admit that you don’t have all the answers."

"It is essential to communicate a message of unity, that we are in this together and we will find our way through this together."

The oil market outlook remains unpredictable, Dr Al Jaber said, but he is optimistic that Adnoc can navigate this period of uncertainty. He highlighted that Adnoc is well-positioned due to its transformation programme over the last four years.

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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As a UAE-based travel agent who processes tourist visas from the Philippines, Jennifer Pacia Gado is fielding a lot of calls from concerned travellers just now. And they are all asking the same question.  

“My clients are mostly Filipinos, and they [all want to know] about good conduct certificates,” says the 34-year-old Filipina, who has lived in the UAE for five years.

Ms Gado contacted the Philippines Embassy to get more information on the certificate so she can share it with her clients. She says many are worried about the process and associated costs – which could be as high as Dh500 to obtain and attest a good conduct certificate from the Philippines for jobseekers already living in the UAE. 

“They are worried about this because when they arrive here without the NBI [National Bureau of Investigation] clearance, it is a hassle because it takes time,” she says.

“They need to go first to the embassy to apply for the application of the NBI clearance. After that they have go to the police station [in the UAE] for the fingerprints. And then they will apply for the special power of attorney so that someone can finish the process in the Philippines. So it is a long process and more expensive if you are doing it from here.”

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  • Kirill Shamalov, Russia's youngest billionaire and previously married to Putin's daughter Katarina
  • Petr Fradkov, head of recently sanctioned Promsvyazbank and son of former head of Russian Foreign Intelligence, the FSB. 
  • Denis Bortnikov, Deputy President of Russia's largest bank VTB. He is the son of Alexander Bortnikov, head of the FSB which was responsible for the poisoning of political activist Alexey Navalny in August 2020 with banned chemical agent novichok.  
  • Yury Slyusar, director of United Aircraft Corporation, a major aircraft manufacturer for the Russian military.
  • Elena Aleksandrovna Georgieva, chair of the board of Novikombank, a state-owned defence conglomerate.