ABU DHABI // Two British teachers who are on a global tour to highlight the production cycle of modern technology were in the capital to explain their mission.
Stuart Block and Claire Le Hur are travelling 10,000 kilometres by bicycle to trace the worldwide production of mobile phones, from where raw materials are mined in Africa, to factories in Asia and consumers in Europe.
Mr Block is travelling by tandem so he can pick up interested passengers along the way, while Ms Le Hur is on a bamboo bike.
Along the way, the two have stopped at schools to meet pupils and impart the economic, geographical and cultural lessons they have picked up on their journey.
They are also trying to develop teaching materials and raise funds for educational charities through their mission that is being chronicled on the website beyondthebike.org.
“The big thing is raising money – not only money, but awareness for education and the lack of education that so many people have,” said Ms Le Hur. “It actually makes us better at our jobs to be able to go back and teach people back in the UK, or wherever it is we end up.”
Last week, on a UAE stopover as they flew from South Africa to Singapore, the pair visited Cranleigh Abu Dhabi school and Dubai College.
“It’s about getting lots of different people to engage in what we are doing and bringing the world into different classrooms,” said Ms Le Hur, 34, a classics and languages teacher.
Their journey began in September in London and they cycled to Amsterdam. They then flew to Uganda and pedalled to South Africa, visiting mines and meeting park rangers en route.
They started the Asian leg of their trip last week and were expected to finish their journey in May or June in China.
Their accommodation has ranged from the homes of fellow teachers to camping on school grounds.
They often get tips on where to stay from pedestrians that Mr Block has picked up on his tandem. “To understand the human geography better you need to have proper conversations with people,” said 37-year-old economics teacher. “Often you learn quite a bit about what’s going on with prices and what the challenges are, what they think of their politicians or are their policies actually working on the ground. I’ve learnt a lot more about the countries through conversations.”
If there is one lesson both have taken away from their journey it is that the world is filled with kind and generous people.
“We have been overwhelmed by the hospitality, of people taking us in, rich people, poor people of all religions, all cultures, giving us food, giving us water and being interested in what we’re doing,” said Ms Le Hur.
Cranleigh Abu Dhabi headmaster Brendan Law said he hoped his pupils would be inspired by the travellers.
“The thing that I always love about this kind of talk is just purely inspiration,” said Mr Law. “It’s great to see children’s eyes light up at the possibilities that life can bring.”
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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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