Brace yourself, dear reader. The next 600 words or so will be accompanied by the clang of blatant and unashamed name-dropping. I was at the World Economic Forum’s annual meeting in Davos last week.
I know Davos polarises opinion, mainly between those who go and those who don’t.
If you’re one of the former, it’s a unique mind-expanding experience and an unequalled networking opportunity. For the rest, it’s a useless talking shop, all hot air in a cold climate.
I understand the doubters, but any lingering scepticism was dispelled on day one in the breakfast room of my extortionately overpriced hotel. It’s not often you get the chance for an impromptu chat over coffee with Nouriel Roubini, the “Doctor Doom” economist who predicted the global financial crisis. He seemed rather more optimistic about things.
Next I shared a snow-buggy with Gerald Lawless, the Jumeirah chief executive, on our way to the congress centre where he was to talk about the marine environment. He was worried he might be cast as the fall guy for Big Leisure, but in the end he won them over with his knowledge of the migratory habits of turtles.
Mission number one at the congress centre was to find the Emirati delegation, which was not difficult. There, prominently installed in one of the main thoroughfare cafes, was a fair sprinkling of the UAE elite.
“I am Mohammed Al Gargawi”, he said, with a finger-breaking handshake. As if I didn’t know. His charming wife, Mona Al Mari, was there too. All the buzz was about the Iranian president, Hussain Rouhani.
After a quick chat with my old pal Lionel Barber, editor of the Financial Times, I headed off to hear Mohamed Al Abaar, chairman of Emaar, speak candidly of the problems of the Arab world in a “Chatham House” session. Unfortunately the rules prevent me from reporting.
Then on to an evening event, in one of the big hotels along the Davos Promenade. The temperature was dropping now, around minus 5, so I was glad of the hearty man-hug I got from Sir Richard Branson, an old sparring partner.
“We must get a drink later,” he said as we parted in the street swapping mobile numbers, but the schedule proved impossible. I’m on a promise for his trip to Abu Dhabi next month.
Tony Blair was positively glowing (must have been the altitude) at a reception organised by JP Morgan, the investment bank that pays him, but declined to chat. Maybe he was keener to talk to Mark Carney, the governor of the Bank of England, which is understandable.
Mr Carney, on the other hand, was absolutely everywhere, and found time to chit-chat with journalists, even about trivia like his remarkable resemblance to the American actor George Clooney. “Not the first time I’ve heard that,” he quipped modestly.
Lord Mandelson, the former British minister, was also convivial later on. He slipped into a discreet little restaurant with a friend, popped over to my table to say hello, adding: “I’m escaping a boring dinner with a crowd of bankers, don’t tell anybody.” Your secret is safe with me, Peter.
Then a nightcap at the Belvedere hotel, the epicentre of the Davos experience. There were so many late-night receptions going on that the queue to get in was long, and cold. “What’s the point of being a master of the universe if you have to line up?” joked an investment banker, whose name I promised not to reveal.
Then, after a trudge through the snow to my Burj Al Arab-priced accommodation, came blessed sleep. And day two.
fkane@thenational.ae
MATCH INFO
Wales 1 (Bale 45 3')
Croatia 1 (Vlasic 09')
Series information
Pakistan v Dubai
First Test, Dubai International Stadium
Sun Oct 6 to Thu Oct 11
Second Test, Zayed Stadium, Abu Dhabi
Tue Oct 16 to Sat Oct 20
Play starts at 10am each day
Teams
Pakistan
1 Mohammed Hafeez, 2 Imam-ul-Haq, 3 Azhar Ali, 4 Asad Shafiq, 5 Haris Sohail, 6 Babar Azam, 7 Sarfraz Ahmed, 8 Bilal Asif, 9 Yasir Shah, 10, Mohammed Abbas, 11 Wahab Riaz or Mir Hamza
Australia
1 Usman Khawaja, 2 Aaron Finch, 3 Shaun Marsh, 4 Mitchell Marsh, 5 Travis Head, 6 Marnus Labuschagne, 7 Tim Paine, 8 Mitchell Starc, 9 Peter Siddle, 10 Nathan Lyon, 11 Jon Holland
Manikarnika: The Queen of Jhansi
Director: Kangana Ranaut, Krish Jagarlamudi
Producer: Zee Studios, Kamal Jain
Cast: Kangana Ranaut, Ankita Lokhande, Danny Denzongpa, Atul Kulkarni
Rating: 2.5/5
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
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.”
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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