The Saint Sophia Cathedral in Kiev, Ukraine. Sergey Dolzhenko / EPA
The Saint Sophia Cathedral in Kiev, Ukraine. Sergey Dolzhenko / EPA

Euro 2012 promises to be test for Kiev



Emerging from the airport in Kiev, visitors are greeted with highway signs displaying crimson petals enclosing a green football pitch - a football flower for Ukraine.

The capital is preparing to co-host - with Poland - the Uefa Euro 2012 championship, which starts on June 8, along with the droves of rowdy football fans who will come for the matches.

Whether you are a sports nut or businessman, Kiev has an array of attractions, from the high to the low.

The city's main square is in an urban valley, and it collects teenagers in mini-skirts, couples on dates and groups of Asian and Eastern European tourists. A white pillar rising above the cobblestone streets is topped by a gold-plated angel that is supposed to protect the city.

Overlooking the angel is probably the easiest hotel to find in Kiev, the Hotel Ukraine. A renovation completed last month has transformed an establishment once marked by a neon sign in the shape of a woman into one with a bright, airy lobby. As before the renovation, its hallways are patrolled by non-English-speaking matrons who have the double duty of dispensing keys and cleaning rooms.

The less adventurous can head to the Hyatt up the road, where perfectly made beds and free wireless await the tired traveller. For a higher tariff, the Hyatt will put you in a room with a view of Saint Sophia Cathedral.

Skip the expense and walk across the street to the cathedral's gates, which enclose plush lawns, pleasing brick walkways and a traditional Ukrainian art museum that occasionally hosts opera recitals.

A magnificent bell tower anchors the main gate, and round green domes cap off the cathedral. In the evening, the grounds are perfectly still except for the rumbling of cars bumping along the road outside.

twitter: Follow and share our breaking business news. Follow us

iPad users can follow our twitterfeed via Flipboard - just search for Ind_Insights on the app.

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.”

Our legal columnist

Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

PFA Premier League team of 2018-19

Allison (Liverpool)

Trent Alexander-Arnold (Liverpool)

Virgil van Dijk (Liverpool)

Aymeric Laporte (Manchester City)

Andrew Robertson (Liverpool)

Paul Pogba (Manchester United)

Fernandinho (Manchester City)

Bernardo Silva (Manchester City)

Raheem Sterling (Manchester City)

Sergio Aguero (Manchester City)

Sadio Mane (Liverpool)

'Skin'

Dir: Guy Nattiv

Starring: Jamie Bell, Danielle McDonald, Bill Camp, Vera Farmiga

Rating: 3.5/5 stars