Sheikh Zayed signs the Federation Agreement on December 2, 1971, creating the UAE. On his left is Sheikh Rashid, then Ruler of Dubai. Behind them are Mehdi Al Tajir, Sheikh Maktoum bin Rashid and Sheikh Hamdan bin Rashid. Photo: Ramesh Shukla
Sheikh Zayed signs the Federation Agreement on December 2, 1971, creating the UAE. On his left is Sheikh Rashid, then Ruler of Dubai. Behind them are Mehdi Al Tajir, Sheikh Maktoum bin Rashid and Sheikh Hamdan bin Rashid. Photo: Ramesh Shukla
Sheikh Zayed signs the Federation Agreement on December 2, 1971, creating the UAE. On his left is Sheikh Rashid, then Ruler of Dubai. Behind them are Mehdi Al Tajir, Sheikh Maktoum bin Rashid and Sheikh Hamdan bin Rashid. Photo: Ramesh Shukla
Sheikh Zayed signs the Federation Agreement on December 2, 1971, creating the UAE. On his left is Sheikh Rashid, then Ruler of Dubai. Behind them are Mehdi Al Tajir, Sheikh Maktoum bin Rashid and Shei


Carrying Sheikh Zayed's legacy into the next 50 years


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December 02, 2021

The UAE was born into precarious conditions. I still have vivid memories of how hard Sheikh Zayed, the Founding Father, had to work when dealing with international observers and diplomats. They doubted that the nation he had envisioned had any of the infrastructure necessary for statehood, and they were concerned for the turmoil, conflict and violence in the regional environment. In their view, his conviction that the federal union would provide prosperity and well-being for its citizens and bring peace and stability to its neighbours was a misplaced fantasy. In 1971, there was indeed a huge amount to accomplish, all at once, and starting from scratch. However, our 50th anniversary confounds the sceptics.

Today, the UAE is a major financial and trading centre. It has sophisticated institutions to govern the economy and society, and to maintain health, education, security and well-being. Its population has access to rich physical and cultural resources. It is a multicultural community strengthened by values of respect and tolerance and pride in its heritage.

As we prepare for the next 50 years’ journey, we recognise that existential challenge is today a global experience. All nations are unsettled by climate crisis, geopolitical uncertainty, an eroding international order, the imbalance between population growth and resources and the fear that digitisation will undermine the workforce. Whole regions suffer conflict, violence, division and distrust. Wherever we look, we see poverty of some kind: lack of education, food, security, energy, health, governance or infrastructure. We are losing our vibrant ecological ecosystems and sense political, social and economic disruption everywhere.

This is the context for the UAE’s development in the next 50 years. It is in this context that the leadership’s vision for 2071 becomes significant and the 10 guiding principles for action set out by our Government in a presidential decree published in October become meaningful. For the UAE to become a world leader in all fields in the next 50 years, we must address challenges that are global in scale.

In taking on this ambitious undertaking, it is important to bear in mind the distance travelled from our raw beginnings. It is equally important to remember the reasons for our success. If the future ambition and challenges feel a little daunting, a look back to our own history reminds us that we have succeeded once, and we will again succeed if we adhere to a set of values and convictions that remain essential.

Our present-day success speaks to the strength and capacity of the people, and the transformative power of Sheikh Zayed’s leadership. He was emphatic about his vision and standards, and he had every confidence in the potential of the people. Sheikh Zayed was always confident in his ability to make things happen. As a leader, the word “impossible” was never part of his vocabulary, and nothing but the best would do.

Sheikh Zayed was able to motivate people to collaborate, to combine their energies and to persevere. He gained people’s trust because they saw that his vision, his actions and his convictions were driven by a set of humanitarian values. His agenda for the country was to ensure collective well-being and to alleviate suffering. He knew that if people would work together, they could meet every challenge and achieve prosperity, security and happiness.

DUBAI, 21 November 2021. Installation in celebration of the 50th National Day of the UAE on Al Wasl Avenue, Expo 2020 Dubai. (Photo by Christopher Pike/Expo 2020 Dubai)
DUBAI, 21 November 2021. Installation in celebration of the 50th National Day of the UAE on Al Wasl Avenue, Expo 2020 Dubai. (Photo by Christopher Pike/Expo 2020 Dubai)

Sheikh Zayed left a legacy of ambition and humanitarian values that is honoured by our present leadership. They teach us to seek global horizons, and they instruct us that to do this, we must advance sustainable well-being for all nations. The Covid-19 pandemic has demonstrated that no one nation or leader can provide solutions to challenges that are global in reach. The fight against climate change, manifested most recently at Cop26, is motivated by recognition of the collective responsibility of nations for the plight of our planet. At this point in our own nation’s history, we depend on global co-operation to address the challenges of the 21st century. Once again, we require transformative leadership led by humanitarian values.

The 10 principles set by our present leadership continue the legacy of Sheikh Zayed. The two primary principles are to strengthen the union and to foster a vibrant and dynamic economy. Three further principles identify the tools we must use: developing human capital, expanding the frontiers of our digital, technical and scientific excellence and continuing a foreign policy based on multilateral co-operation.

The remaining five principles present an ethical framework to guide the use of these tools. They ask us to practise the principles of good-neighbourliness, openness and tolerance and humanitarian aid. They instruct us to advocate for peace and harmony, and to use negotiation and dialogue as the means to conflict resolution.

Pope Francis meets Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces. Getty
Pope Francis meets Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces. Getty
National success can only be achieved under conditions of global sustainability

The principles are exciting. They speak to the importance of developing intellect and knowledge, innovation and research and international collaboration. They demonstrate the wisdom and integrity of Sheikh Zayed, when he said that the most important investment a nation could make was to educate the next generation so that they are prepared for their future.

Today, education must prepare our children to address a future in which change and existential challenge are global in scale. This implies that schools, universities, vocational institutes, research centres and lifelong learning are increasingly essential. Our young people must never cease to learn, to invent or to innovate.

The principles suggest that it is also essential to promote our cultural and creative industries. Here we will find activities and aspirations that cultivate diversity, tolerance and peaceful co-existence. They involve the experience of difference and the requirement to understand other peoples’ meanings and perspectives. They build dialogue, relationships and respect between peoples.

The UAE 2071 vision and the 10 principles are anchored in our tradition of international responsibility. They recognise that national success can only be achieved under conditions of global sustainability, peace and solidarity. They are also rooted in our humanitarian heritage. They teach us that we are only strong and secure if the weakest amongst us is safe, healthy, educated and happy. Our quality of life depends on our ability to work together for our collective well-being.

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.”

The biog

Hometown: Birchgrove, Sydney Australia
Age: 59
Favourite TV series: Outlander Netflix series
Favourite place in the UAE: Sheikh Zayed Grand Mosque / desert / Louvre Abu Dhabi
Favourite book: Father of our Nation: Collected Quotes of Sheikh Zayed bin Sultan Al Nahyan
Thing you will miss most about the UAE: My friends and family, Formula 1, having Friday's off, desert adventures, and Arabic culture and people
 

Updated: December 02, 2021, 8:01 AM