The UAE is the country in which the majority of Arab youths would most like to live, according to a survey. Silvia Razgova / The National
The UAE is the country in which the majority of Arab youths would most like to live, according to a survey. Silvia Razgova / The National

Opinion

Arab youths are looking for hope

How do other regional states respond to young people’s desire to live in a country like the UAE?

National Editorial

April 22, 2015

It should come as no surprise that most Arab youths view the UAE as a model country. As The National reported yesterday, people between the ages of 18 and 24 who took part in the Arab Youth Survey chose the UAE, for the fourth year in a row, as the top country in the world in which they would like to live, and the country they would most like their country to emulate. In the survey, commissioned by public relations consultancy Asda'a Burson-Marsteller, the UAE was placed ahead of 20 countries, including the United States, Germany and Canada.

It is no surprise that the UAE ranks highly. Our country is open, tolerant, stable, dynamic, expanding and full of economic potential. It is a trailblazer in a region that has suffered many years of political and economic turmoil. But can other Arab countries follow this UAE model?

The unique position of this country has developed from its success in leveraging its vast oil reserves. Not all the other Arab states have the same natural resources, but they all have some point of difference that could be exploited.

When it became necessary for Dubai to find other sources of income to fuel growth, it looked to its strengths – a geographical position that gave it an edge as a trading post and transport hub and its potential as a tourism and lifestyle destination.

Each country has to discover its own comparative advantages and focus on ways to use them for the economic benefit of its ­citizens.

The survey also found that four years after the Arab Spring uprisings began, Arab youths are more doubtful than ever about the potential effectiveness of western-style democracy in the Middle East. Of course, there is no single model of western democracy – even the French, Americans and British have different political systems – and there should be no single template for states in this region. Each country must develop a constitutional model that has its own characteristics, is inclusive for all its people and respects the rule of law.

The UAE model is, in fact, a prudent understanding of one’s strength.

if you go

The flights Fly Dubai, Air Arabia, Emirates, Etihad, and Royal Jordanian all offer direct, three-and-a-half-hour flights from the UAE to the Jordanian capital Amman. Alternatively, from June Fly Dubai will offer a new direct service from Dubai to Aqaba in the south of the country. See the airlines’ respective sites for varying prices or search on reliable price-comparison site Skyscanner.

The trip 

Jamie Lafferty was a guest of the Jordan Tourist Board. For more information on adventure tourism in Jordan see Visit Jordan. A number of new and established tour companies offer the chance to go caving, rock-climbing, canyoning, and mountaineering in Jordan. Prices vary depending on how many activities you want to do and how many days you plan to stay in the country. Among the leaders are Terhaal, who offer a two-day canyoning trip from Dh845 per person. If you really want to push your limits, contact the Stronger Team. For a more trek-focused trip, KE Adventure offers an eight-day trip from Dh5,300 per person.

The specs

Engine: 3-litre twin-turbo V6

Power: 400hp

Torque: 475Nm

Transmission: 9-speed automatic

Price: From Dh215,900

On sale: Now

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
More from Neighbourhood Watch:

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.”