Healthy food habits are not instinctive


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In a bold move, the Ministry of Education has announced a radical overhaul of health guidelines for schools. The new instructions will force schools to choose caterers based on the type of food they provide: processed food such as crisps, chips and chocolates are off the menu and caterers who fail to adjust will be off the payroll.

This is a welcome move by the ministry. There are few things more detrimental to long-term health than eating and becoming accustomed to lots of fat, salt and sugar in meals at a young age. The cost in medical bills and health problems later in life is high.

But there is more to the diet of schoolchildren than merely the food supplied at school. Juvenile obesity in children, which often continues into adulthood, is a complex problem. Children, like adults, live in a society where fast, not always healthy food is everywhere, advertised in bright colours on television and online, offered cheaply in most neighbourhoods and, in the case of some soft drinks and sweets, even seen as aspirational. In such an environment, it is easy and tempting for adults to make unhealthy choices - and so much easier for young, impressionable minds.

At the heart of this discussion is a philosophical question, epitomised by the statement in yesterday's report in The National from one parent that she gives her children Dh4 a day to purchase sandwiches and juice. Perhaps this parent has sufficiently educated her children about wholesome choices. But many do not.

Too often parents, teachers, peers and role models may think that children are mature enough to make good decisions about what they eat, and how they choose to live. This is unlikely, because schoolchildren are too young to understand the impact on their long-term health.

Most responsible parents would not let their 10-year-olds play with petrol and matches, skip out on dinner, stay up all night, talk to strangers or race off across the road without looking both ways. Why, then, do too many parents assume that children in primary school with money in their pockets won't simply eat empty calories for lunch?

The ministry's move is a recognition that healthy diet and smart choices about food are things that can be left to young minds alone. These lifestyle habits must be taught, and learnt. Teaching how to live, like what to eat, is the responsibility of parents and the wider society.

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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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What is the Supreme Petroleum Council?

The Abu Dhabi Supreme Petroleum Council was established in 1988 and is the highest governing body in Abu Dhabi’s oil and gas industry. The council formulates, oversees and executes the emirate’s petroleum-related policies. It also approves the allocation of capital spending across state-owned Adnoc’s upstream, downstream and midstream operations and functions as the company’s board of directors. The SPC’s mandate is also required for auctioning oil and gas concessions in Abu Dhabi and for awarding blocks to international oil companies. The council is chaired by Sheikh Khalifa, the President and Ruler of Abu Dhabi while Sheikh Mohamed bin Zayed, Abu Dhabi’s Crown Prince and Deputy Supreme Commander of the Armed Forces, is the vice chairman.

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