Workers clear a road following floods caused by heavy rains in Dubai, on April 19. Bloomberg
Workers clear a road following floods caused by heavy rains in Dubai, on April 19. Bloomberg
Workers clear a road following floods caused by heavy rains in Dubai, on April 19. Bloomberg
Workers clear a road following floods caused by heavy rains in Dubai, on April 19. Bloomberg


The UAE's resilience in the face of a storm


The National
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April 26, 2024

With regard to the editorial How people power helped the UAE weather the storm (April 23): The piece rightly mentioned that this event will linger in people's minds for years to come. Going ahead, as stated in the editorial, climate preparedness must be a factor in a city planning to face future challenges. It was impressive nonetheless that the city was able to get back to its feet in such a short time, considering the amount it rained. Air travel was naturally impacted but it was managed efficiently all in all, considering the weather disturbances. Kudos to UAE authorities for taking so many initiatives to help the people.

K Ragavan, Bengaluru, India

The GCC's focus on sustainability

With reference to Fareed Rahman's article UAE and Oman set up investment partnerships worth $35bn (April 24): The GCC countries deserve praise for their efforts to create sustainable living conditions. The emphasis of the GCC countries on creating certain energy and industrial projects as a means of increasing employment and reducing reliance on oil in the future is a smart move.

It is commendable that future projects have a focus on sustainability and the attempt is to prevent harmful effects on the environment. Because of how quickly the weather has changed in this region of the world in recent years, there are also prospects to address additional water storage, such as building dams that can gradually convert to producing power, and increasing agricultural land to reduce reliance on importing food staples.

Another approach to improve connectivity between the GCC countries is through the proposed rail network, which will enable freight and passengers to commute more quickly and reach their destinations. There will undoubtedly be additional tourism initiatives in the area in the near future as a result of improved passenger connections.

The guidance and leadership in the GCC is what will eventually raise people's standards of living even more.

Ramachandran Nair, Muscat, Oman

Pro-Palestine protests in the US

With reference to the podcast on Israeli Prime Minister Benjamin Netanyahu condemning pro-Palestine protests being held at US universities (April 25): Benjamin Netanyahu may say that “more has to be done” to stop them but the US still has something called the First Amendment and only the US government can decide on matters related to American law. Assuming a prime minister of a different country can dictate otherwise is an outrage.

Virginia Abugattas, New Jersey, US

I salute the American common people who are standing with Gaza and Palestinians in solidarity. Israeli occupation must end. Palestine has the right to be free.

Hamid K Mohamad, Ontario, Canada

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Children who witnessed blood bath want to help others

Aged just 11, Khulood Al Najjar’s daughter, Nora, bravely attempted to fight off Philip Spence. Her finger was injured when she put her hand in between the claw hammer and her mother’s head.

As a vital witness, she was forced to relive the ordeal by police who needed to identify the attacker and ensure he was found guilty.

Now aged 16, Nora has decided she wants to dedicate her career to helping other victims of crime.

“It was very horrible for her. She saw her mum, dying, just next to her eyes. But now she just wants to go forward,” said Khulood, speaking about how her eldest daughter was dealing with the trauma of the incident five years ago. “She is saying, 'mama, I want to be a lawyer, I want to help people achieve justice'.”

Khulood’s youngest daughter, Fatima, was seven at the time of the attack and attempted to help paramedics responding to the incident.

“Now she wants to be a maxillofacial doctor,” Khulood said. “She said to me ‘it is because a maxillofacial doctor returned your face, mama’. Now she wants to help people see themselves in the mirror again.”

Khulood’s son, Saeed, was nine in 2014 and slept through the attack. While he did not witness the trauma, this made it more difficult for him to understand what had happened. He has ambitions to become an engineer.

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LIVING IN...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

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 Outsider

Stephen King, Penguin

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Updated: April 26, 2024, 5:06 AM