The gate on Harvard Yard at the Harvard University campus in Cambridge, Massachusetts. Getty Images via AFP
The gate on Harvard Yard at the Harvard University campus in Cambridge, Massachusetts. Getty Images via AFP
The gate on Harvard Yard at the Harvard University campus in Cambridge, Massachusetts. Getty Images via AFP
The gate on Harvard Yard at the Harvard University campus in Cambridge, Massachusetts. Getty Images via AFP


Will there ever be a Harvard in the Middle East?


Omar Al Busaidy
Omar Al Busaidy
  • English
  • Arabic

September 11, 2023

Ask the average child in Africa, Asia or South America about where they would like to get their higher education and they would almost certainly say they’d like to graduate from an Ivy league school in the US, or one of the top universities in the UK or Canada. In fact, even after they graduate from these schools, some would make sure that the university they went to is clearly mentioned on the headline of their LinkedIn profile or when they work out at the gym, they would be wearing the university’s merchandise.

Of course, there are high-quality universities in the Middle East and Asia, in countries such as Israel, Singapore and China, but nine times out of 10, western universities still get picked. There are several reasons for that. Some might argue that western universities offer better quality of education, university life, better career opportunities after graduating and a stronger alumni network.

Everyone knows that once upon a time, the Middle East was the envy of the world; it was home to the best scholars, inventors, doctors and engineers. In fact, western students would travel East to study in Baghdad, Damascus and Cairo.

Students fill out their application forms at the Abu Dhabi Vocational Education and Training Institute. The National
Students fill out their application forms at the Abu Dhabi Vocational Education and Training Institute. The National

So what happened? How did the Middle East lose the appeal of being the beacon of light for higher education?

There are several theories, one of which could be that throughout the 21st century, the region has been constantly fighting wars and internal conflicts that served as battlegrounds for superpowers to push and pull Middle Eastern states into power politics. This led to the destruction of both hard and soft infrastructure, brain drain of the brightest minds to western countries who offered the dream of having white picket-fenced homes, a yard and a dog in a cosy neighbourhood cul-de-sac.

The Middle East has been on the rise again in the years since, especially with the energy-rich Gulf countries using their revenue to build cities and infrastructure that could conceivably rival the likes of London, Los Angeles and New York. Indeed, the roads and bridges are now second to none, airports are unmatched, malls are as big as the eye can see, and skyscrapers are among the tallest in the world. When it comes to higher education, they are able to host some of the most-renowned education franchises, including Carnegie Mellon University, George Washington University, Sorbonne University, New York University and others.

Family and friends with the graduates at the Mohamed bin Zayed University of Artificial Intelligence commencement of class 2023 ceremony, in Abu Dhabi. Khushnum Bhandari / The National
Family and friends with the graduates at the Mohamed bin Zayed University of Artificial Intelligence commencement of class 2023 ceremony, in Abu Dhabi. Khushnum Bhandari / The National

Again, however, we go back to the first question: where do the students want to study? They will still prefer the international institutions, particularly if they have franchises in the region, rather than studying at local universities. What can and should be done to ensure that in 20 or 30 years from now, the world’s brightest will want to study at the likes of Zayed University, Princess Nourah bint Abdulrahman University or Sultan Qaboos University?

There are some areas that can be tackled for our local universities to improve their rankings among the world’s educational institutions.

First, they need to allocate a significant outlay for research and development. Indeed, amounts spent on R&D in other parts of the world dwarf what is spent in our region. According to a study by Strategy&, a part of the PricewaterhouseCoopers network, R&D spending, including capital expenditures, is between 0.1 per cent of GDP in Bahrain and 0.9 per cent in the UAE. The average for OECD countries, in comparison, is 2.5 per cent.

Building academic cities is an important step, but the region’s institutions need more investment.

Second, during my time pursuing an undergraduate degree here in the UAE, I always had to show my identification card to enter the campus, which was surrounded by a large wall. I didn’t notice this on campuses in the US, where I received a master’s degree. This may seem irrelevant, but I believe that allowing the campus to be part of the community enables the transfer of ideas, knowledge and opportunities that then fosters a symbiotic relationship between the community and the university.

To paraphrase the late US president Ronald Reagan’s plea to the Soviet Union regarding the Berlin Wall, I would invite all universities to “tear down their walls”.

Third, there needs to be more collaboration between academia and industry.

For example, companies such as Boston Dynamics work in sync with the Massachusetts Institute of Technology, Stanford University collaborates with companies in the Silicon Valley, and the University of Washington has ties to Microsoft, Amazon and other tech companies. We can only create clearer career paths and educational journeys for students if we connect them to the opportunities that they will find when they graduate.

At a recent event, Sheikh Abdullah bin Zayed, Minister of Foreign Affairs, spoke about sending his children to public schools, and said that he would like to see other citizens do the same since a large number of them send their children to private schools. Sheikh Abdullah was making an important statement, as he discussed ways to elevate the standard and quality of public and local education with a view to make them more appealing for the citizens.

Today, we have a succeeded in attracting investors, tourists and workers to the region. The hope is that in the future, people from around the world will be drawn to this part of the world, also to study in its universities and wear their merchandise and flaunt their mascots long after they have graduated.

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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.”

Defined benefit and defined contribution schemes explained

Defined Benefit Plan (DB)

A defined benefit plan is where the benefit is defined by a formula, typically length of service to and salary at date of leaving.

Defined Contribution Plan (DC) 

A defined contribution plan is where the benefit depends on the amount of money put into the plan for an employee, and how much investment return is earned on those contributions.

Updated: September 11, 2023, 5:08 PM