Peter Rigby, the chief executive of Informa, says the UAE is an attractive place for business because of efficiencies.
Peter Rigby, the chief executive of Informa, says the UAE is an attractive place for business because of efficiencies.

In any event, UAE is good for business



Peter Rigby is the chief executive of Informa, an international business that has its headquarters in Switzerland and some 150 offices around the world. The company puts on Arab Health and other conferences and exhibitions in the region:

How important is the Middle East as you expand?

We have a bigger base here already than, say, in Brazil, China or India. It's certainly grown quicker than the developed markets, which are pretty sluggish. The developing markets are very important to us and we've invested heavily not just on the events side. We've invested in terms of training, conferences, exhibitions and publications.

You acquired IIR, a major events company, a few years back. What lesson has Informa learnt after acquiring a major competitor?

It gave us critical mass. The old Informa had stuck to a conference model, and IIR had effectively gone from a conference model that migrated into a trade show model. Many of the big shows we have here now all started off as small conferences. It's a model we've retained to this day, that mixture of conferences that become exhibitions, and when they are an exhibition then we try to raise the standard of them.

Are you continuing to expand?

We've looked to start things. We've looked to acquire things available. We've looked to grow things. I think it's fair to say that Arab Health is the best health exhibition in the world and has certainly grown more quickly than any other health exhibition. We'll continue to try to grow events like that and take successful ones like that into other markets in 2011 and 2012. We'll do bits of Arab Health in Abu Dhabi. We'll do a health exhibition in South Africa, China, Germany.

Do you prefer to grow business by boosting demand for existing products or creating new ones?

I think you have to do both. If you could just grow existing products, like running a magazine with more ads every month and it gets thicker and thicker, then that's great because launching something new always has risks associated with it. But from our perspective, we know things will wax and wane. One of the ways to get around that is to put events into new places. This is what we call geo-cloning. But at the same time as doing that, to build and start new conferences, new exhibitions.

How do outside businesses push into the UAE?

Well, I think it's an attractive place for businesses to be located because it's so efficient. So now it's a place where companies have their Middle Eastern offices, which I think is increasingly the case. We have some people in other GCC countries but the main centre is here in Dubai.

What limitations are there here?

You have to remember it's a smallish country. Therefore, it's the region you're targeting. You have to think: my customers are in the whole region because Dubai on its own isn't sufficient to support that.

The specs

Engine: 1.5-litre turbo

Power: 181hp

Torque: 230Nm

Transmission: 6-speed automatic

Starting price: Dh79,000

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Director: Venkat Prabhu
Rating: 2/5

Company Profile

Company name: Yeepeey

Started: Soft launch in November, 2020

Founders: Sagar Chandiramani, Jatin Sharma and Monish Chandiramani

Based: Dubai

Industry: E-grocery

Initial investment: $150,000

Future plan: Raise $1.5m and enter Saudi Arabia next year

COMPANY%20PROFILE
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The specs

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Transmission: 10-speed automatic

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COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
Company%20Profile
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Europe’s rearming plan
  • Suspend strict budget rules to allow member countries to step up defence spending
  • Create new "instrument" providing €150 billion of loans to member countries for defence investment
  • Use the existing EU budget to direct more funds towards defence-related investment
  • Engage the bloc's European Investment Bank to drop limits on lending to defence firms
  • Create a savings and investments union to help companies access capital
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia

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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The Bio

Favourite vegetable: “I really like the taste of the beetroot, the potatoes and the eggplant we are producing.”

Holiday destination: “I like Paris very much, it’s a city very close to my heart.”

Book: “Das Kapital, by Karl Marx. I am not a communist, but there are a lot of lessons for the capitalist system, if you let it get out of control, and humanity.”

Musician: “I like very much Fairuz, the Lebanese singer, and the other is Umm Kulthum. Fairuz is for listening to in the morning, Umm Kulthum for the night.”