Saudi passengers arrive at King Khalid International Airport in Riyadh. AFP
Saudi passengers arrive at King Khalid International Airport in Riyadh. AFP
Saudi passengers arrive at King Khalid International Airport in Riyadh. AFP
Saudi passengers arrive at King Khalid International Airport in Riyadh. AFP

Saudi Arabia allows fully vaccinated expats to return from 20 banned countries


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Saudi Arabia has lifted a travel ban on residents fully vaccinated against Covid-19 from 20 countries, state media said, in a move that allows the return of thousands of expatriates who have been stranded abroad for months.

The ban was issued by the Ministry of Interior in February to curb the spread of the coronavirus.

The country decided to admit vaccinated expats coming from red-list countries based on health reports as a decline in Covid-19 cases continues in Saudi Arabia, a representative for the Ministry of Interior said on Tuesday. Those arriving must have received two doses of a vaccine against Covid-19 in the kingdom before departure to their home country.

Expats who meet the criteria can return to the kingdom directly without need for quarantine in a third country as per previous rules.

The decision was welcomed by expats who expressed their relief to be reunited with their family members stranded abroad.

"I am so happy my parents and siblings can return from Lebanon, we had been worried sick due to the ongoing situation there and just want them to come back," said Nadine Ali, a Lebanese living in Jeddah.

Travel to and from the kingdom was banned in March last year due to the outbreak of the pandemic. Saudi Arabia reopened its air, land and sea borders in January but banned travel to and from countries with a high number of Covid-19 cases, where new mutations of the virus were found.

Many expats had to travel to countries on the green list first before heading to Saudi Arabia as direct flights were unavailable from a number of countries.

"At one point we had to go to Ethiopia to come back into the country from South Africa. It was impossible to come back to Saudi Arabia directly as flights were banned from South Africa. I am so glad now we don't have to quarantine in another country and my wife can just come back safely," Mr Amin Mustafa, a South African citizen living in the kingdom told The National.

The Indian, Pakistani and Indonesian embassies welcomed the decision to allow their citizens back into the country.

Saudi Arabia this month allowed vaccinated tourists to enter the country for the first time in 17 months. Last month the kingdom announced that citizens who breach Covid-19 restrictions on travelling to red-list countries could be barred from travelling for up to three years.

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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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Updated: August 25, 2021, 12:44 PM