The View From Here: 'Sandwiched' by financial support responsibilities



If your parents are anything like mine, there are times when you appreciate having an ocean between you and them. But for expatriates, members of the "sandwich generation", taking care of elderly parents while supporting themselves and their own children is a burden they can't avoid.

Of course, many Emiratis, for whom caring for parents into old age is a given, would shake their heads in wonder at this. In the Middle East, Africa, as well as Asia, the concept of sending parents to a home, or leaving them to fend for themselves is just plain weird.

In any case, the circle is rapidly turning and whether we are ready or not, many of us will end up having to provide some form of assistance to an ageing family, even as we are still tying the shoelaces of the upcoming generation. A study by the SunAmerica Financial Group and Age Wave, a research organisation that studies the effects of ageing on society, shows that almost half of Americans over 55 expect to support both their ageing parents and their children.

In the UK, about 250,000 couples are in the same position, according to The Guardian newspaper. And a large share of Pakistan's nearly US$11 billion (Dh40.4bn) in remittances is spent on caring for family back home.

According to the UN, the fastest-growing group in the world is the "oldest old" - those who have lived past the age of 80. Many of these people are expected to outlive their savings. At the same time, their children will also likely be part of another rapidly growing demographic - people who opt to have children later in life.

I'd go so far as to predict that we are not far away from the time when parental care will soon be right up there with children's education as a make-or-break issue when deciding on whether to move abroad for work. The cost of schooling is already a pivotal issue for families faced with relocation, a cost some employers try avoid. I can't think of many countries on the traditional expat work list that will issue residence visas to elderly dependants.

And it's no secret that offshore companies will, if at all possible, hire young, single workers if they can, rather than carry the burden of an employee with a spouse and children in tow. Only where they have no choice do they reluctantly provide family assistance. So it goes without saying that parental assistance of any kind is off the table.

In time, they may have no choice, as more professionals find themselves responsible for two generations. Issues such as relocation allowances that include elderly dependants, including air fares and even nursing care assistance will eventually become part of the package for people with the more sought-after skills.

In the meantime, though, it's best to make what preparations you can to manage the situation yourself.

Speak to your parents and ask about estate planning. Do they have an attorney? Where do they keep all the relevant documents? Make sure you have the contact details of important people, such as a neighbour, their physician and lawyer.

If any of these contact details change, your parents should let you know. This is why it's important to discuss these issues with them, particularly if you are going to be abroad for some time. Next, have a contact person to call in time of crisis. It could be a friend of the family or a sibling living in your home country.

There will be few situations more distressing than having to manage a crisis while still trying to book a flight out and wrestling your luggage through the Etihad terminal.

Finally, you may also need to get a realistic picture of your parents' financial health. Not easy to do. My father, who regards parting with an extra cent as a personal failure, will not disclose his finances if his life depends on it. Luckily, I have mum as an inside spy to provide me with the necessary intelligence.

Ultimately, if your parents run into financial difficulty, you may have to step in and help out. To do so effectively, you need to be prepared.

Gavin du Venage is a business writer and entrepreneur based in South Africa.

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
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Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Company%20profile
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Cryopreservation: A timeline
  1. Keyhole surgery under general anaesthetic
  2. Ovarian tissue surgically removed
  3. Tissue processed in a high-tech facility
  4. Tissue re-implanted at a time of the patient’s choosing
  5. Full hormone production regained within 4-6 months
The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
THE BIO: Martin Van Almsick

Hometown: Cologne, Germany

Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)

Favourite dessert: Umm Ali with dark camel milk chocolate flakes

Favourite hobby: Football

Breakfast routine: a tall glass of camel milk

The British in India: Three Centuries of Ambition and Experience

by David Gilmour

Allen Lane

THE SPECS

Engine: 1.5-litre turbocharged four-cylinder

Transmission: Constant Variable (CVT)

Power: 141bhp 

Torque: 250Nm 

Price: Dh64,500

On sale: Now

Other workplace saving schemes
  • The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
  • Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
  • National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
  • In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
  • Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.

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.”

UAE%20PREMIERSHIP
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Final scores

18 under: Tyrrell Hatton (ENG)

- 14: Jason Scrivener (AUS)

-13: Rory McIlroy (NIR)

-12: Rafa Cabrera Bello (ESP)

-11: David Lipsky (USA), Marc Warren (SCO)

-10: Tommy Fleetwood (ENG), Chris Paisley (ENG), Matt Wallace (ENG), Fabrizio Zanotti (PAR)

COMPANY PROFILE
Company name: BorrowMe (BorrowMe.com)

Date started: August 2021

Founder: Nour Sabri

Based: Dubai, UAE

Sector: E-commerce / Marketplace

Size: Two employees

Funding stage: Seed investment

Initial investment: $200,000

Investors: Amr Manaa (director, PwC Middle East) 

Health Valley

Founded in 2002 and set up as a foundation in 2006, Health Valley has been an innovation in healthcare for more than 10 years in Nijmegen, the Netherlands.
It serves as a place where companies, businesses, universities, healthcare providers and government agencies can collaborate, offering a platform where they can connect and work together on healthcare innovation.
Its partners work on technological innovation, new forms of diagnostics and other methods to make a difference in healthcare.
Its agency consists of eight people, four innovation managers and office managers, two communication advisers and one director. It gives innovation support to businesses and other parties in its network like a broker, connecting people with the right organisation to help them further

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

COMPANY%20PROFILE
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Company name: Play:Date

Launched: March 2017 on UAE Mother’s Day

Founder: Shamim Kassibawi

Based: Dubai with operations in the UAE and US

Sector: Tech 

Size: 20 employees

Stage of funding: Seed

Investors: Three founders (two silent co-founders) and one venture capital fund

No_One Ever Really Dies

N*E*R*D

(I Am Other/Columbia)

Shooting Ghosts: A U.S. Marine, a Combat Photographer, and Their Journey Back from War by Thomas J. Brennan and Finbarr O’Reilly

Fight card

Preliminaries:

Nouredine Samir (UAE) v Sheroz Kholmirzav (UZB); Lucas Porst (SWE) v Ellis Barboza (GBR); Mouhmad Amine Alharar (MAR) v Mohammed Mardi (UAE); Ibrahim Bilal (UAE) v Spyro Besiri (GRE); Aslamjan Ortikov (UZB) v Joshua Ridgwell (GBR)

Main card:

Carlos Prates (BRA) v Dmitry Valent (BLR); Bobirjon Tagiev (UZB) v Valentin Thibaut (FRA); Arthur Meyer (FRA) v Hicham Moujtahid (BEL); Ines Es Salehy (BEL) v Myriame Djedidi (FRA); Craig Coakley (IRE) v Deniz Demirkapu (TUR); Artem Avanesov (ARM) v Badreddine Attif (MAR); Abdulvosid Buranov (RUS) v Akram Hamidi (FRA)

Title card:

Intercontinental Lightweight: Ilyass Habibali (UAE) v Angel Marquez (ESP)

Intercontinental Middleweight: Amine El Moatassime (UAE) v Francesco Iadanza (ITA)

Asian Featherweight: Zakaria El Jamari (UAE) v Phillip Delarmino (PHI)