The Maldives has scrapped a US$500 million (Dh1.83 billion) contract to develop its international airport.
The deal with India's GMR Group was the biggest foreign investment project in the Maldives and the move to cancel it has provoked criticism from India.
"The decision to terminate the contract with GMR without due consultation with the company or efforts at arbitration provided for under the agreement sends a very negative signal to foreign investors and the international community," said India's external affairs ministry.
The contract to develop and operate the airport was awarded to GMR - which is leading the consortium developing Delhi International Airport - in 2010 under the previous regime in the Maldives. The former president Mohamed Nasheed was ousted earlier this year.
"In a unilateral and completely irrational move the government of Maldives has … issued a notice to the GMR Male International Airport intending to take over the possession and control of the Ibrahim Nasir International Airport (INIA) under the pretext that the agreement is void," said GMR, adding that it was challenging the assertion that the agreement was "void".
It said that it was striving to "ensure the safety of our employees and safeguard our assets".
The Maldives is the lowest lying country in the world, with a maximum natural height above sea level of less than 2.5 metres. Known for its luxury resorts, the country is made up of almost 1,200 islands.
Tourism is the main economic contributor in the Maldives, making up 28 per cent of the country's GDP and more than 60 per cent of its foreign exchange receipts.
"The company would further like to state that it has taken all measures to continue operations at the Ibrahim Nasir International Airport thereby ensuring that this vital gateway to Maldives is kept open," said GMR.
"The company understands the importance of tourism to the economy of Maldives and having been entrusted the responsibility of operating and developing the INIA, will discharge its duties to the fullest."
Under the agreement in 2010, GMR won the right to build and operate the airport for 25 years, which would be extendable by a further 10 years after that.
The plans included building a 55,700 square metre passenger terminal and increasing the terminal capacity to handle 5.5 million passengers each year.
The development plans also included a VIP terminal, landside development and improving the existing terminal. GMR Male International Airport is a joint venture company which is made up of GMR Infrastructure, which holds 77 per cent, and Malaysia Airports Holding Berhad, which has the remaining 23 per cent.
GMR has been given a week to leave the Maldives, according to reports.
"The government of India would continue to remain engaged with the government of Maldives on this issue, and would expect that the government of Maldives would fulfil all legal processes and requirements in accordance with the relevant contracts and agreement it has concluded with GMR in this regard," said India's ministry of external affairs.
"We call upon the government of Maldives and all concerned parties to ensure that Indian interests in Maldives and the security of Indian nationals are fully protected."
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Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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.”
Managing the separation process
- Choose your nursery carefully in the first place
- Relax – and hopefully your child will follow suit
- Inform the staff in advance of your child’s likes and dislikes.
- If you need some extra time to talk to the teachers, make an appointment a few days in advance, rather than attempting to chat on your child’s first day
- The longer you stay, the more upset your child will become. As difficult as it is, walk away. Say a proper goodbye and reassure your child that you will be back
- Be patient. Your child might love it one day and hate it the next
- Stick at it. Don’t give up after the first day or week. It takes time for children to settle into a new routine.And, finally, don’t feel guilty.
MATCH INFO
Azerbaijan 0
Wales 2 (Moore 10', Wilson 34')
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DEADPOOL & WOLVERINE
Starring: Ryan Reynolds, Hugh Jackman, Emma Corrin
Director: Shawn Levy
Rating: 3/5
Scores in brief:
Boost Defenders 205-5 in 20 overs
(Colin Ingram 84 not out, Cameron Delport 36, William Somerville 2-28)
bt Auckland Aces 170 for 5 in 20 overs
(Rob O’Donnell 67 not out, Kyle Abbott 3-21).
Polarised public
31% in UK say BBC is biased to left-wing views
19% in UK say BBC is biased to right-wing views
19% in UK say BBC is not biased at all
Source: YouGov
