Ohood Al Roumi, Minister of State for Government Development and the Future, told the World Economic Forum about the benefits of the UAE's new working week. Bloomberg
Ohood Al Roumi, Minister of State for Government Development and the Future, told the World Economic Forum about the benefits of the UAE's new working week. Bloomberg
Ohood Al Roumi, Minister of State for Government Development and the Future, told the World Economic Forum about the benefits of the UAE's new working week. Bloomberg
Ohood Al Roumi, Minister of State for Government Development and the Future, told the World Economic Forum about the benefits of the UAE's new working week. Bloomberg


The future of work top of mind for leaders in Davos


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May 25, 2022

Leaders from the public and private sectors gathered in Davos come from an array of sectors and countries. And while those attending the Annual Meeting of the World Economic Forum have a wide variety of experiences and priorities, one topic that has cut across most discussions is that of the future of work.

As the chairman and chief executive officer of ManpowerGroup, Jonas Prising, said: “Changes in work will be one of the long-lasting impacts of Covid-19.”

The realities imposed by Covid-19, including remote and flexible work, are here to stay. That much is clear. Furthermore, the current economic realities, with a competition for talent and an increase in people leaving their work around the world, now known as “the great resignation”, mean that all entities and organisations are having to consider how work is organised.

On a panel entitled The Four-Day Week: Necessity of Luxury, Mr Prising was joined by UAE Minister of State for Government Development and the Future Ohood Al Roumi, who spoke of the UAE government’s decision to implement a four-and-a-half-day week since January.

She said that the UAE implemented the new working week in government entities for four reasons: “well-being, strengthening family bonds, economic growth as people with more time off spend in the domestic market, and to better align with global markets”.

She said that since January, the UAE government has been monitoring the effect on government staff and has found that 70 per cent of employees said they were more efficient, while there was a 55 per cent drop in absenteeism.

Jonas Prising, chief executive of ManpowerGroup, speaks during a panel session at the World Economic Forum in Davos, Switzerland. Bloomberg
Jonas Prising, chief executive of ManpowerGroup, speaks during a panel session at the World Economic Forum in Davos, Switzerland. Bloomberg

Social entrepreneur Hillary Cottam said that the notion of choice is valued by workers, saying “normative changes” are now important to allow for it. The issue isn’t necessarily of four days a week, she added, but having the ability to “build work around life, rather than life around work”.

However, not all workers will be able to benefit from these changes. "We have to think beyond knowledge workers," said Mr Prising. Those who have work that is labour-intensive don’t have the same luxury, he added.

As decision-makers debate the merits of different working conditions, the vast majority of workers will not have the luxury of choice that many high-skilled workers do.

Adam Grant, professor of management and psychology at Wharton School in the University of Pennsylvania, said: “We should think of tasks that need completion ... rather than hours.” He proposed enough flexibility in organisations to “allow groups to work on projects together in teams”, rather than imposing work practices.

And yet some chief executives expressed scepticism that all industries could have the same flexibility.

While the jury is out on how the working week and hybrid work will develop, what is clear is that the norms of the past have been disrupted, and no one size fits all.

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Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

The advice provided in our columns does not constitute legal advice and is provided for information only. Readers are encouraged to seek independent legal advice. 

The more serious side of specialty coffee

While the taste of beans and freshness of roast is paramount to the specialty coffee scene, so is sustainability and workers’ rights.

The bulk of genuine specialty coffee companies aim to improve on these elements in every stage of production via direct relationships with farmers. For instance, Mokha 1450 on Al Wasl Road strives to work predominantly with women-owned and -operated coffee organisations, including female farmers in the Sabree mountains of Yemen.

Because, as the boutique’s owner, Garfield Kerr, points out: “women represent over 90 per cent of the coffee value chain, but are woefully underrepresented in less than 10 per cent of ownership and management throughout the global coffee industry.”

One of the UAE’s largest suppliers of green (meaning not-yet-roasted) beans, Raw Coffee, is a founding member of the Partnership of Gender Equity, which aims to empower female coffee farmers and harvesters.

Also, globally, many companies have found the perfect way to recycle old coffee grounds: they create the perfect fertile soil in which to grow mushrooms. 

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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.”

UAE currency: the story behind the money in your pockets
From Europe to the Middle East, economic success brings wealth - and lifestyle diseases

A rise in obesity figures and the need for more public spending is a familiar trend in the developing world as western lifestyles are adopted.

One in five deaths around the world is now caused by bad diet, with obesity the fastest growing global risk. A high body mass index is also the top cause of metabolic diseases relating to death and disability in Kuwait,  Qatar and Oman – and second on the list in Bahrain.

In Britain, heart disease, lung cancer and Alzheimer’s remain among the leading causes of death, and people there are spending more time suffering from health problems.

The UK is expected to spend $421.4 billion on healthcare by 2040, up from $239.3 billion in 2014.

And development assistance for health is talking about the financial aid given to governments to support social, environmental development of developing countries.

 

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Updated: May 26, 2022, 8:32 AM