As the university term comes to an end, many students all over the developed world are thinking about how to acquire valuable work experience during the summer months.
In a recent report, the Abu Dhabi Competitiveness Office suggested that government-subsidised internships in the private sector could offer a breakthrough in Emiratisation. While all steps towards Emiratisation are steps in the right direction, it is important to take a realistic view of the benefits of internships, and to consider the difficulties, as well as the benefits, of current internship programmes.
In many countries, the use of internships has increased dramatically in recent years. Since the global financial crisis of 2008, interns have come to be seen as a low-cost, high-skill alternative to short-term hiring, for large and small organisations alike.
The benefits of internship programmes are well-documented. Organisations can use interns to complete specific short-term projects, or fill in for permanent workers on holiday.
This can be a trial run for a potential employment relationship. Organisations can evaluate the talent and potential of an intern, who meanwhile can gain valuable insights into the employer's work environment and can test the fit between the organisation and the young person's work values.
Another positive by-product of internship programmes is thatthey can be used to help promote minority inclusion in the workplace - an issue particularly relevant to Emiratisation.
On the other hand, there are also well-documented negative consequences of internship programmes. Interns can take up a lot of supervisory time and effort, sometimes at great cost to organisational performance.
Also the quality of work from interns can be low, so that the finished product must be discarded or re-done because it does not meet the employer's standards.
In private-sector interships for Emiratis, it is important to manage expectations carefully.
In general, students with limited work histories tend to have unrealistic expectations of a new workplace. This is true across cultures and countries.
When their expectations are not met, interns can become disillusioned, leading to a phenomenon known as "reverse recruiting", in which unhappy interns actively discourage other students from taking future internships.
Several very sensitive issues must be carefully managed if private-sector internships for Emiratis are to be effective.
If internships are to be government-subsidised, there is a real risk that some companies may view the internship process as a revenue stream. It could be tempting to employers to take on Emirati interns in exchange for some payment, but not actually provide the interns with any real work experience, perhaps not even requiring them to show up for work.
If the companies themselves do not receive any payment, but rather the subsidy goes directly to the intern, there is still a risk that in some organisations the internship process may simply be a bureaucratic exercise. That is, a company could show a willingness to support Emiratisation, without really engaging fully in the process.
Such "ghost internships" are an already a problem that is recognised by officials at some UAE universities that require internships for their graduating students.
Because of such negative experiences, many sponsors now visit internship locations to ensure that the process works as intended.
A further barrier to effective internship can arise over its acceptance by young Emiratis. The chance to provide a government- subsidised internship may entice companies, but it does not necessarily follow that these posts will appeal to Emiratis.
Already, within university internship programmes there is a distinct preference for Emiratis to intern in public-sector companies. Even at the level where no salaries or benefits are provided, the public sector is preferred, for a familiar reason: Emiratis find government work more culturally comfortable than private business.
This public-sector preference highlights the dominant factor in the Emiratisation challenge:
As long as government employees enjoy pay, benefits and conditions that are not comparable with those in the private sector, there is likely to be a strong, persistent preference for public-sector employment.
At the entry- and mid-levels, government organisations have created a set of workplace expectations with which the private sector simply cannot compete.
To overcome or change this preference will require a significant policy shift in public-sector recruitment, work practices and benefits.
The real challenge is identifying what those policies may be and ensuring they can be implemented in a fair manner that supports the social and economic stability of the UAE.
Dr James C Ryan is an assistant professor of human resource management in the college of business and economics at United Arab Emirates University
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.”
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Global state-owned investor ranking by size
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Email sent to Uber team from chief executive Dara Khosrowshahi
From: Dara
To: Team@
Date: March 25, 2019 at 11:45pm PT
Subj: Accelerating in the Middle East
Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.
Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.
I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.
This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.
It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.
Uber on,
Dara
The specs
Engine: 6.2-litre V8
Transmission: ten-speed
Power: 420bhp
Torque: 624Nm
Price: Dh325,125
On sale: Now
Know your Camel lingo
The bairaq is a competition for the best herd of 50 camels, named for the banner its winner takes home
Namoos - a word of congratulations reserved for falconry competitions, camel races and camel pageants. It best translates as 'the pride of victory' - and for competitors, it is priceless
Asayel camels - sleek, short-haired hound-like racers
Majahim - chocolate-brown camels that can grow to weigh two tonnes. They were only valued for milk until camel pageantry took off in the 1990s
Millions Street - the thoroughfare where camels are led and where white 4x4s throng throughout the festival
PROFILE OF SWVL
Started: April 2017
Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh
Based: Cairo, Egypt
Sector: transport
Size: 450 employees
Investment: approximately $80 million
Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani
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%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.0-litre%204cyl%20turbo%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E261hp%20at%205%2C500rpm%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E400Nm%20at%201%2C750-4%2C000rpm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E7-speed%20dual-clutch%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E10.5L%2F100km%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh129%2C999%20(VX%20Luxury)%3B%20from%20Dh149%2C999%20(VX%20Black%20Gold)%3C%2Fp%3E%0A