Microsoft to fit portal to local users



The UAE will be one of the first countries to see a customised version of the MSN Arabia website, the Middle Eastern Web portal owned by Microsoft, as the company rolls out new features to attract more of the region's online advertising dollars. Microsoft and MSN Arabia representatives will meet today with advertisers to discuss their plans as well as introduce a new advertising concept called "advertainment" that will attempt to involve users in marketing campaigns, said Mohammed el Sayad, the general manager of MSN Arabia.

The Emirates, Egypt and Saudi Arabia will be the first to get the localised portals, with Lebanon, Bahrain and Qatar to follow, Mr el Sayad said. "There are some countries that make sense to have stand-alone versions because of the internet penetration, the amount of users and the amount of content we can generate from those countries," he said. The advertainment concept will attempt to integrate social media services such as Facebook and Twitter to share content that is tied to marketing campaigns.

"I don't think advertising will be the same any more," he said. "We want users to be entertained and involved at the same time ? for example, in gaming, we'll give users a way to play with the brand." Content on the portal will be generated through deals it has with press agencies such as the Agence France-Presse and user-generated content, Mr el Sayad said. It also aims to leverage its strong digital portfolio offerings such as Hotmail and Messenger with its MSN Arabia brand.

About 28 million internet users in the region use a Hotmail account for e-mail and almost 21 million are Messenger users, he said. MSN Arabia's strategy to create localised versions of a portal takes a page from the playbook of its main rival, Yahoo Maktoob. This month, Rich Riley, the senior vice president of Yahoo's European, Middle East and African regions, said the online giant would customise core features of its websites for the Arab world. But MSN Arabia faces a challenge. The website has about 777,000 daily unique visitors from the region, lagging its rival Yahoo Maktoob with 1.1 million hits a day, figures from Nielsen Online show. Regional figures for Google were not available.

Mr el Sayad welcomes the Yahoo Maktoob competition and said more players would help grow the market for everyone. Online advertising is expected to more than triple its share of the ad sector in the region from 4 per cent last year to 13.4 per cent by 2014, according to recent research by the consultancy Booz and Company. The sector was worth about US$90 million (Dh330.5m) last year in the region, up from $65m in 2008. "We've been there since it all started," Mr el Sayad said.

"We know the numbers that are out there. "We know each and every person at every ad agency. We still like to think that we're the preferred network when it comes to advertising." MSN Arabia is a joint venture with LINKdotNET, the internet services subsidiary of Orascom Telecom, and the Microsoft Network. dgeorgecosh@thenational.ae

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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COMPANY PROFILE
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