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An Emirati envoy has set out the UAE's mission to bring companies and countries together and unleash the potential of advanced technology to serve as a global hub for philanthropy.
Badr Jafar, special envoy for business and philanthropy, said the Emirates was well-positioned to act as a "trusted partner" in co-ordinating crucial international aid efforts.
Speaking to The National at the UN General Assembly in New York, Mr Jafar underlined the need to improve efficiency and transparency in charitable giving to ensure funds reach where they are needed most.
He gave the example of how hundreds of billions of dollars are donated each year through Zakat, one of the five pillars of Islam, which requires Muslims above a certain financial threshold to donate 2.5 per cent of their wealth.
"The key question is, where is that money going and how is it going?" said Mr Jafar, also chief executive of Sharjah conglomerate Crescent Enterprises.
"So are we able to develop better digital platforms to help to channel those funds in a way that's more transparent, but that ultimately leads to also greater impact?"
"I think the UAE can play a great role by connecting not just geographies, North, South, East, West, but also sectors, to come together to develop these sorts of solutions and to be a trusted partner as a convener but also as an implementer."
The envoy's remarks come at a time when the secure delivery of aid has never been more crucial, with the world grappling with the human cost of deadly conflicts in Gaza, Sudan and Ukraine.
"The UAE's real secret sauce is our ability to translate ideas into projects, initiatives and outcomes that really deliver real impact to our society, and to societies that we partner with," said Mr Jafar, who has held talks with charitable organisations and agencies during Unga to outline the UAE's vision.
"One of the things that we've been working on is the creation of a blueprint of sorts, as to what the UAE as a hub for philanthropy would look like," he told The National.
Global effort
The business and philanthropy champion said the challenges faced by the United States Agency for International Development (USAID) – which has had most of its aid programmes cut by President Donald Trump – highlighted the need for charitable partners to put on a united front.
"The shock to the system that happened when USAID was dismantled was very real," Mr Jafar said. "But when you put it in perspective, just to give you the US example, USAID at its peak delivered around $60 billion or $70 billion a year, which is a lot of money.
"Obviously those programmes that relied on it were in particular destitute when that money stopped all of a sudden. But if you look at private philanthropy in the US last year, north of $600 billion was disbursed – so 10 times the government aid.
"And this is by private, I mean actually private individuals, this is over and above corporate philanthropy or corporate social responsibility. So there's a thriving cluster in North America. There's also a significant cluster in Europe.
Mr Jafar added: "In other parts of the world it's more fragmented. They want to be more engaged in their giving. They want more transparency. They want to see better use of technology.
"And technology has the ability to move philanthropy from a one-to-many model, where one person gives to many people, to a many-to-one model, where now you have many individuals giving smaller amounts to a specific cause or one individual even.
"So the confluence of these various trends requires a trusted partner to try and bring together research and data, convening, and also education and training of best-in-class practices.
"And I think the UAE is, I believe – many others do – the UAE has a unique potential to be that hub."
Company%20profile
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The specs: 2018 Nissan Altima
Price, base / as tested: Dh78,000 / Dh97,650
Engine: 2.5-litre in-line four-cylinder
Power: 182hp @ 6,000rpm
Torque: 244Nm @ 4,000rpm
Transmission: Continuously variable tranmission
Fuel consumption, combined: 7.6L / 100km
Results
5pm: Al Maha Stables – Maiden (PA) Dh80,000 (Turf) 1,600m; Winner: Reem Baynounah, Fernando Jara (jockey), Mohamed Daggash (trainer)
5.30pm: Wathba Stallions Cup – Maiden (PA) Dh70,000 (T) 1,600m; Winner: AF Afham, Tadhg O’Shea, Ernst Oertel
6pm: Emirates Fillies Classic – Prestige (PA) Dh100,000 (T) 1,600m; Winner: Ghallieah, Sebastien Martino, Jean-Claude Pecout
6.30pm: Emirates Colts Classic – Prestige (PA) Dh100,000 (T) 1,600m; Winner: Yas Xmnsor, Saif Al Balushi, Khalifa Al Neyadi
7pm: The President’s Cup – Group 1 (PA) Dh2,500,000 (T) 2,200m; Winner: Somoud, Adrie de Vries, Jean de Roualle
7.30pm: The President’s Cup – Listed (TB) Dh380,000 (T) 1,400m; Winner: Haqeeqy, Dane O’Neill, John Hyde.
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
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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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March 15 - Australia, Melbourne; March 22 - Bahrain, Sakhir; April 5 - Vietnam, Hanoi; April 19 - China, Shanghai; May 3 - Netherlands, Zandvoort; May 20 - Spain, Barcelona; May 24 - Monaco, Monaco; June 7 - Azerbaijan, Baku; June 14 - Canada, Montreal; June 28 - France, Le Castellet; July 5 - Austria, Spielberg; July 19 - Great Britain, Silverstone; August 2 - Hungary, Budapest; August 30 - Belgium, Spa; September 6 - Italy, Monza; September 20 - Singapore, Singapore; September 27 - Russia, Sochi; October 11 - Japan, Suzuka; October 25 - United States, Austin; November 1 - Mexico City, Mexico City; November 15 - Brazil, Sao Paulo; November 29 - Abu Dhabi, Abu Dhabi.
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Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East