ABU DHABI // The retiring chief executive of golf’s largest governing body made it clear that he was not interested in soppy, sentimental reminisces about his looming departure.
However, Peter Dawson had no problem talking about the unceremonious and unplanned exit he made about three decades ago, before he became the director of the Royal & Ancient Golf Club.
Back when he was in the construction business, authorities in Nigeria abruptly hauled him into an airport interrogation room and accused him of smuggling guns, then deported him to England.
“It took me about five hours below stairs being interviewed and I was put on the midnight flight back to London,” said Dawson, laughing, who later learnt that authorities were looking for a different man with a similar name.
His retirement next year from the R&A will doubtlessly be more gentle, though marked by plenty of opinions about his tenure, which began in 1999 at the height of Tiger Woods’s powers. As with Woods, Dawson’s time at the R&A’s helm has had plenty of successes and controversies.
Yesterday at the HSBC Golf Business Forum, an annual global seminar held for the first time in Abu Dhabi, it was all about the huzzahs. Dawson, 64, was given a distinguished service award for his years of stewardship over a game that is starting to show a few cracks.
With the game’s regression in Europe, North America and Australia, to name a few crucial locales, much of the seminar was focused on fixing the economic ailments that have stalled golf’s economic engine.
With stars such as Woods and Phil Mickelson well into the back nine of their respective careers and public play declining at courses across most western countries, the forecast is not exactly rosy in the eyes of industry analysts.
But for Dawson, the timing felt right. He will be 67 by the time he retires and having found the game a place in the 2016 Olympics and with the R&A membership to vote on allowing female membership, it potentially gives two big feathers in his cap. “It’s an age thing,” he said. “It’s time, isn’t it?”
Several hot-button topics remain, including the formal polling of the all-male R&A membership in September to potentially end more than 250 years of exclusionary policies. It is safe to assume that a vote would not have been called if passage was not reasonably assured, but Dawson was making no bold predictions about the result.
“As a governing body, I think it’s the right thing to do,” he said. “But anything’s possible, so we’ll have to wait and see.”
While Dawson has helped stabilise the financial underpinnings of the R&A’s most cherished property, the British Open, the game’s governing bodies have taken some broadsides during his tenure, too. For instance, there has been continued blowback regarding the R&A’s use of three male-only clubs as British Open venues, though that point is not under discussion.
“We are not about to change our policy of where the Open is played,” he said.
Some of the HSBC seminar centred on fixing golf’s participation issues by tweaking the game with larger cups for beginners, cutting the number of holes played, or other nuances designed to attract the millennials the game sorely needs to endure.
Dawson all but dismissed the gimmickry. “This thought that if the game is easier, it will be more popular, is totally unproven,” he said. “The game is easier today, arguably for the average golfer, than it has ever been. But during that time, at least in mature markets, golf has declined a bit.
“People want instant gratification today and don’t seem to have as much time to spend on stuff. I don’t think it has anything to do with how difficult the game is.”
Another development that has seen plenty of public traction relates to the British Open potentially being staged in Northern Ireland for the first time since 1951. Dawson said that the R&A remain in discussions with Royal Portrush and various government entities, and effectively confirmed a report last week that two new holes would be built.
“Yes, if we went to Portrush, it would involve some course changes,” he said.
Dawson said that as he prepares to ride into the sunset, he hopes another wave of elite-class players will assert themselves.
“We need two or three to come through and be ‘the ones’, so to speak,” he said, “and we’re not quite there.”
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The specs
Engine: 0.8-litre four cylinder
Power: 70bhp
Torque: 66Nm
Transmission: four-speed manual
Price: $1,075 new in 1967, now valued at $40,000
On sale: Models from 1966 to 1970
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UAE currency: the story behind the money in your pockets
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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The specs: 2019 Mercedes-Benz C200 Coupe
Price, base: Dh201,153
Engine: 2.0-litre turbocharged four-cylinder
Transmission: Nine-speed automatic
Power: 204hp @ 5,800rpm
Torque: 300Nm @ 1,600rpm
Fuel economy, combined: 6.7L / 100km
UAE currency: the story behind the money in your pockets
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.