Philip King is the head of retail banking at Abu Dhabi Islamic Bank. Mona Al Marzooqi / The National
Philip King is the head of retail banking at Abu Dhabi Islamic Bank. Mona Al Marzooqi / The National
Philip King is the head of retail banking at Abu Dhabi Islamic Bank. Mona Al Marzooqi / The National
Philip King is the head of retail banking at Abu Dhabi Islamic Bank. Mona Al Marzooqi / The National

Money

Your Money blog: Five quick questions with The Debt Panel’s new expert

Philip King, head of retail banking, UAE at Abu Dhabi Islamic Bank, says there are three key things we should all do to manage our finances better: budget, pay our debts on time and contact the bank if we are in trouble.

Alice Haine
Alice Haine

March 14, 2017

  • English
  • Arabic

The Debt Panel has a new banking expert from today: Philip King, head of retail banking, UAE at Abu Dhabi Islamic Bank (ADIB). Mr King takes the place of ADIB’s Jamal Alvi, who for the last year has been offering his take on how residents in the UAE should better handle their liabilities.

Mr King, from the UK, has three decades of experience in banking across Europe, the Americas and the Middle East. He joined ADIB in 2013 after a stint at Citibank. Here he answers five quick questions on the debt issues facing many residents in the Emirates:

What will you bring to the debt panel?

I’m looking forward to helping people better organise their financial lives. Part of our mission at ADIB is to educate UAE consumers on how to better manage their financial lives and their debt. The diversity of the debt panel is one of its strengths and I will be presenting the banking perspective.

Why do you think so many UAE residents are still contacting The Debt Panel for help?

I think consumers want advice from bankers on how to manage their finances better and they want to be educated, but often don’t know where to look. There is a strong need in the UAE for financial education. Based on our own research, which makes this need clear, we have developed our own financial education campaign and see a widespread need for initiatives like ours, and The Debt Panel in the UAE.

What should UAE residents be doing differently to avoid getting into debt?

Educate, educate, educate. Read about financial management, ask questions, and share your knowledge and experiences with others. Our own smart money booklet gives a great grounding in the basics of responsible financial management. On a more practical level, consumers should only take on debt if they are going to purchase things that create value. Their debt should never exceed 15 per cent of total revenue, and it is wise to consolidate debt whenever possible — for example under the type of debt consolidation programme we offer at ADIB called Al Khair.

What can the banking community do to help residents avoid getting into such high levels of debt?

Initiatives like The Debt Panel are a great first step — we need to educate and create awareness first of all. Just as important is that banks establish a transparent approach to explaining fees and the cost of finance, and give consumers the right products to match their needs.

And finally, what are the key things we should all be doing to better manage our finances?

Three things: keep a budget, pay your debts on time, and talk to your bank before your finances get you in trouble.

arayer@thenational.ae

UK's plans to cut net migration

Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.

Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.

But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.

Language requirements will be increased for all immigration routes to ensure a higher level of English.

Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.

The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.

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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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Director: Remo D’Souza
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The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part three: the age of the electric vehicle begins

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• Scientists estimate there could be as many as 3 million fungal species globally
• Only about 160,000 have been officially described leaving around 90% undiscovered
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The specs

BMW M8 Competition Coupe

Engine 4.4-litre twin-turbo V8

Power 625hp at 6,000rpm

Torque 750Nm from 1,800-5,800rpm

Gearbox Eight-speed paddleshift auto

Acceleration 0-100kph in 3.2 sec

Top speed 305kph

Fuel economy, combined 10.6L / 100km

Price from Dh700,000 (estimate)

On sale Jan/Feb 2020
 

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How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less
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