President Donald Trump speaks in the Roosevelt Room of the White House in Washington. AP
President Donald Trump speaks in the Roosevelt Room of the White House in Washington. AP
President Donald Trump speaks in the Roosevelt Room of the White House in Washington. AP
President Donald Trump speaks in the Roosevelt Room of the White House in Washington. AP

What is DEI? Trump puts federal diversity employees on paid leave and moves to close offices


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President Donald Trump, in one of the first executive orders issued after his inauguration on Monday, called for the end of all "illegal DEI" programmes in the federal government and the termination of all related positions and roles.

"Americans deserve a government committed to serving every person with equal dignity and respect, and to expending precious taxpayer resources only on making America great," he said in the order.

But what is DEI, and what does it mean for the future of the public and private sector?

What is DEI?

DEI stands for "diversity, equity and inclusion" and refers to programmes and frameworks aimed at promoting fair treatment and participation for all people.

Diversity is focused on the inclusion of everyone, regardless of race, ability, background, religion or gender, while equity is centred on providing equality of opportunity and equal treatment. Inclusion is focused on allowing every person to have a voice of equal value and creating a culture of openness to all ideas.

While "DEI" is a term that has only recently come to public attention, the concept has been around since the civil rights movement. The Civil Rights Act of 1964 outlawed employment discrimination based on race, religion, sex, colour and national origin, banned segregation in public places, and enabled Americans to sue workplaces that had discriminatory employment practices.

In the years following, companies began having diversity training, with the aim of instructing employees about bias and discrimination in the workplace. This practice was stimulated further by the murder of the black man George Floyd by police, which precipitated a wave of protests against racial discrimination across the country.

Why did Trump take action on DEI?

Mr Trump's executive order stated that DEI "policies not only violate the text and spirit of our long-standing federal civil rights laws, they also undermine our national unity".

The executive order picks up where Mr Trump's first administration left off: one of his final acts during his first term was an executive order banning federal agency contractors and recipients of federal funding from conducting anti-bias training that addressed concepts like systemic racism. Joe Biden promptly rescinded that order on his first day in office and issued a pair of executive orders – now rescinded – outlining a plan to promote DEI throughout the federal government.

DEI has taken centre stage in the so-called culture wars that have rocked the US in recent years. While proponents of DEI view it as a way to correct historical injustice and build a more inclusive future, critics say the concept discriminates against white men and moves the focus in the workplace away from merit and hard work.

In yet another executive order focused on "ending illegal discrimination and restoring merit-based opportunity", Mr Trump said DEI aimed to "deny, discredit and undermine the traditional American values of hard work, excellence, and individual achievement in favour of an unlawful, corrosive and pernicious identity-based spoils system".

"Hardworking Americans who deserve a shot at the American dream should not be stigmatised, demeaned or shut out of opportunities because of their race or sex," the order said.

When he was serving as a senator from Ohio, Vice President JD Vance introduced a piece of legislation that would have eliminated DEI programmes from the federal government. "The DEI agenda is a destructive ideology that breeds hatred and racial division ... Americans’ tax dollars should not be co-opted to spread this radical and divisive ideology," he said.

'Taking our country backward'

Critics of Mr Trump's actions have called his executive orders a major step backward. “Instead of working to create economic opportunities that will allow Americans to get ahead, build generational wealth and achieve the American dream, President Trump on day one of his administration signed an executive order to systematically dismantle all diversity, equity, and inclusion initiatives within the federal government,” congressional Black Caucus chairwoman Yvette Clarke said in a statement.

She added that Republicans had set their sights on “cutting off access to economic opportunity for Black and minority communities in the federal government, on college campuses and in corporate America” since the Supreme Court’s 2023 decision that said race could not be a factor in college admissions, and called the executive order “nothing short of an attempt to take our country backward".

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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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The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence

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COMPANY PROFILE

Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed 

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Director: Ayan Mukerji

Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana

Rating: 2/5

The Bio

Favourite vegetable: “I really like the taste of the beetroot, the potatoes and the eggplant we are producing.”

Holiday destination: “I like Paris very much, it’s a city very close to my heart.”

Book: “Das Kapital, by Karl Marx. I am not a communist, but there are a lot of lessons for the capitalist system, if you let it get out of control, and humanity.”

Musician: “I like very much Fairuz, the Lebanese singer, and the other is Umm Kulthum. Fairuz is for listening to in the morning, Umm Kulthum for the night.”

UAE v Ireland

1st ODI, UAE win by 6 wickets

2nd ODI, January 12

3rd ODI, January 14

4th ODI, January 16

The Bio

Hometown: Bogota, Colombia
Favourite place to relax in UAE: the desert around Al Mleiha in Sharjah or the eastern mangroves in Abu Dhabi
The one book everyone should read: 100 Years of Solitude by Gabriel Garcia Marquez. It will make your mind fly
Favourite documentary: Chasing Coral by Jeff Orlowski. It's a good reality check about one of the most valued ecosystems for humanity

Libya's Gold

UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves. 

The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.

Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.

A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.

TRAP

Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue

Director: M Night Shyamalan

Rating: 3/5

Updated: January 22, 2025, 6:22 PM