Live updates: Follow the latest on Trump's Gulf trip
It's hardly a heartland for the MAGA faithful, but the tens of thousands of US citizens that call the UAE home will watch closely when Donald Trump touches down in Abu Dhabi on Thursday.
As with everywhere the US President goes, he divides opinion.
But the American expats that The National spoke to said they hope his push for friendship and peace in the Middle East will be the legacy of his visit, whatever their personal politics.
They told The National they see great promise in Mr Trump selecting the Gulf as the first foreign stop of his second term in office, believing this will drive up investment and tighten bonds between countries.
The four-day visit began on Tuesday in Riyadh, with stops in Doha and Abu Dhabi scheduled for this week amid high hopes that talks will be fruitful.
“I feel like if there is any hope for peace, it will be with Trump," said Darlene Tezdiker, 56, from Florida, who teaches adults English and has lived in the UAE for more than a decade. "I hope there will be stronger trade and that all talks are productive.
“I hope President Trump will have a positive influence and impact, not just for America but for everyone involved, as this area has experienced instability with the wars. The US and he already have a stable relationship with the UAE and he has deep respect for the leadership.
“As an American, I'm very proud that our country is viewed positively so I hope he can keep that image intact and that he stays on point,” she added.
Striving for peace
Mr Trump’s visit is being closely watched amid the Israel-Hamas war and US tension with Iran. Marc Sievers, a retired US diplomat, listed talks on the Iranian nuclear issue, the Gaza war and economic deals as top of the agenda.
“President Trump has been quite clear that while he would consider Iran maintaining a civilian nuclear programme, their enrichment capabilities and ballistic missile capabilities must be dismantled,” said Mr Sievers, the US ambassador to Oman in 2016.
"I find it hard to believe Iran will accept this approach, so that's issue number one as the Gulf states don’t want a military option.
“And the next is what can be done to bring this violent phase of the Israeli-Palestinian conflict to an end.”
The Gulf region has not been badly hit by President Trump's tariffs announced earlier this year, with 10 per cent levies proving much lower than tariffs set on other Middle Eastern countries.
Artificial intelligence, advanced technology and energy deals are expected to dominate the headlines.
“Opportunities in trade and investment, commitments to large investments in the American economy – this is obviously close to the US President's heart,” Mr Sievers said. "He wants to be able to show before next year's midterm elections that his economic policies are successful."
The strength of US ties with the Gulf is expected to be another key message. Riyadh was Mr Trump’s first official port of call also during his first presidential term and he is only the second US president after George W Bush in 2008 to visit the Emirates.
“The Gulf is the centre of the Arab world, maybe not in population, but in terms of wealth and influence, and also on the world stage,” Mr Sievers said. “Many important things make the Gulf, not just economically but politically and diplomatically, a world centre.
"We had two rounds of nuclear negotiations between the United States and Iran, held in Oman. The UAE is involved in prisoner-related exchanges between Russia and Ukraine, and we had discussions on Ukraine held in Riyadh. This is the centre of the region and important to the US.”
Driving towards crypto
Crypto entrepreneur Rahul Sethuram, 37, says deeper co-operation will benefit people in both countries.
“The UAE has resources, a lot of talent and it would be good for the US to maintain a strong relationship, especially because this region is heavily investing in the deep tech space.”
As the US President's visit progresses, Americans are constantly being asked for their take on their colourful and controversial leader.
“People ask, ‘Oh my God, what do you feel about Trump, can you believe he said this or that?“ Mr Sethuram added. “There is a big spectacle, almost like watching like a reality show. But I do still have some optimism that he has a good long-term vision, he approaches issues very differently than other politicians.“
Trump begins Gulf tour - in pictures
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.”
Nepotism is the name of the game
Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad.
PROVISIONAL FIXTURE LIST
Premier League
Wednesday, June 17 (Kick-offs uae times) Aston Villa v Sheffield United 9pm; Manchester City v Arsenal 11pm
Friday, June 19 Norwich v Southampton 9pm; Tottenham v Manchester United 11pm
Saturday, June 20 Watford v Leicester 3.30pm; Brighton v Arsenal 6pm; West Ham v Wolves 8.30pm; Bournemouth v Crystal Palace 10.45pm
Sunday, June 21 Newcastle v Sheffield United 2pm; Aston Villa v Chelsea 7.30pm; Everton v Liverpool 10pm
Monday, June 22 Manchester City v Burnley 11pm (Sky)
Tuesday, June 23 Southampton v Arsenal 9pm; Tottenham v West Ham 11.15pm
Wednesday, June 24 Manchester United v Sheffield United 9pm; Newcastle v Aston Villa 9pm; Norwich v Everton 9pm; Liverpool v Crystal Palace 11.15pm
Thursday, June 25 Burnley v Watford 9pm; Leicester v Brighton 9pm; Chelsea v Manchester City 11.15pm; Wolves v Bournemouth 11.15pm
Sunday June 28 Aston Villa vs Wolves 3pm; Watford vs Southampton 7.30pm
Monday June 29 Crystal Palace vs Burnley 11pm
Tuesday June 30 Brighton vs Manchester United 9pm; Sheffield United vs Tottenham 11.15pm
Wednesday July 1 Bournemouth vs Newcastle 9pm; Everton vs Leicester 9pm; West Ham vs Chelsea 11.15pm
Thursday July 2 Arsenal vs Norwich 9pm; Manchester City vs Liverpool 11.15pm
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
UAE currency: the story behind the money in your pockets
