Readers weigh in on the long-term economic goals of the Brics countries. Sergei Ilnitsky / EPA
Readers weigh in on the long-term economic goals of the Brics countries. Sergei Ilnitsky / EPA
Readers weigh in on the long-term economic goals of the Brics countries. Sergei Ilnitsky / EPA
Readers weigh in on the long-term economic goals of the Brics countries. Sergei Ilnitsky / EPA

Opinion

A new world order has already begun

Readers discuss the recent Brics summit. Other topics: Lulu Island, landlords, orphans and recycling

Letters to the Editor

July 11, 2015

  • English
  • Arabic

With regard to the article on the Brics summit, The Brics and mortar of the new world order (July 9), creating a new world order doesn't necessarily mean that you have to start with the big fights such as the situation in Greece. Countries like South Africa and Brazil don't want open confrontation with the West. Yet they have agreed to start the New Development Bank, which says something about their long-term intentions.

The argument that Brics lacks the ability or even the will to create a new world order, at least in terms of economics, does reflect what Brics is attempting at the present moment.

But if the new Brics bank helps countries like Egypt, for example, would that qualify as an example of defying the western-dominated financial order?

If the bank goes on to help developing countries across the global south and thus strengthens the economic bonds of the southern hemisphere, wouldn't that be a step towards changing the world economic order?

Ahmed Said, Egypt

Decades of devotion at work

After reading your uplifting piece, Portait of a Nation: After 35 years, it's time to retire for Abu Dhabi school worker (July 10), I just wish that we had more role models like Moideen Kunhahamed. Our youngsters can learn the tenacity needed for a great career from such people. Actually, we all can learn lessons from this humble man and his decades of hard work.

Matthew Litty, Dubai

Looking for a great landlord

With regard to your article, Abu Dhabi and Dubai renters' peace of mind a matter of landlords and locations (July 10), it must be noted that our landlords, at least in Abu Dhabi, have always been kind to us.

We haven’t had a rent increase of more than three per cent a year. The result of such behaviour is that they have always had the best people living in their buildings.

Brigitte von Bulow, Abu Dhabi

When it comes to our rental situation, we haven't had peace of mind in Abu Dhabi because we have had really difficult landlords who seem to think that we have the ability to print money.

Carol Goodey, Dubai

Orphans get a new family

Regarding your report, Family Village officially opens doors to welcome 19 orphans (July 10), the entire project sounds amazing and the most wonderful thing is how happy the orphans look.

I hope they do well in this family village because these children deserve a place like this. Well done to everyone involved!

Angela Pop, Dubai

An island jewel in the UAE

Concerning your piece, Lulu Island: an uncultured pearl in a sea of development (July 10), I have had the opposite experience with the island.

For me, Lulu Island has made the water on the beaches of Abu Dhabi unbearable because it created a barrier that keeps fresher waters from the Gulf away from the shoreline. The water between Lulu’s shoreline and the Abu Dhabi coast gets hot easily and makes swimming not very enjoyable.

Omar Jaramillo, Berlin

I first went to Lulu Island seven years ago by boat. The island was so promising at that time. I thought that it would be the centre of leisure and relaxation for many years to come. But ever since, nothing much has changed and now it is frequently closed to the public. It could be a such a great treasure.

Eric Sapurna, Abu Dhabi

I've been living here for three and a half years and Lulu Island is right across from the Corniche, where I live. It is always closed to the public but I often see cars on the island. Who gets to go to the island on a regular basis?

Rejane Serao, Abu Dhabi

Recycling starts with education

With regard to your article, UAE recycling: Residents and government must share responsibility (July 8), the thousands of used bottles would be a great start to implementing the new scheme. Sadly, of course, these bottles are getting smaller and smaller.

More waste for less water. Positive incentives and education are much better than fines. Without educating the household staff in particular, this new scheme will be fruitless.

Christine Gstottl, Dubai

The specs

Engine: 3.0-litre six-cylinder MHEV

Power: 360bhp

Torque: 500Nm

Transmission: eight-speed automatic

Price: from Dh282,870

On sale: now

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.”

While you're here
Lulu IslandBricsorphansADM