President Sheikh Mohamed bids farewell to Sultan Haitham of Oman, at the Presidential Airport in Abu Dhabi. UAE Presidential Court
President Sheikh Mohamed bids farewell to Sultan Haitham of Oman, at the Presidential Airport in Abu Dhabi. UAE Presidential Court
President Sheikh Mohamed bids farewell to Sultan Haitham of Oman, at the Presidential Airport in Abu Dhabi. UAE Presidential Court
President Sheikh Mohamed bids farewell to Sultan Haitham of Oman, at the Presidential Airport in Abu Dhabi. UAE Presidential Court


Gulf visits counter the pessimism of violent conflicts


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April 24, 2024

The recent escalation between Iran and Israel has raised concerns in Gulf countries, particularly their collective desire to defuse regional tensions and their preference for diplomatic solutions over military ones. The recent developments have added even more fuel to the already raging fire that is the tragic war in the Gaza Strip, which has consequences for the Middle East as a whole.

In this context, recent Gulf diplomacy sends a clear message that there is no retreating from the region’s emphasis on expanding the portfolio of economic, investment and development projects.

The GCC countries will continue to maintain a two-pronged approach. They believe that positive and constructive engagement with turbulent geopolitical developments and reiterating their call for de-escalation and calm do not conflict with maintaining progress and keeping up with rapid developments in technology, artificial intelligence and economic reconstruction to adapt and prepare for the post-oil era.

A visit to the UAE by Sultan Haitham of Oman this week and the ongoing Asian tour by Qatar’s Emir Sheikh Tamim are two examples of this Gulf approach.

It is an approach that rejects the idea of waiting to find solutions to the multiple regional geopolitical challenges before embarking on an ambitious economic agenda and large investment initiatives. It is also significant that Sultan Haitham’s UAE visit comes in the wake of extreme weather conditions in both countries in recent days. Such visits enhance a positive approach to managing crises and learning lessons from them without getting trapped in them – and without, figuratively speaking, waiting for the storm to pass.

The Gulf is doing its best to fend off the storm and confront the region’s diverse security challenges, and not allowing them to obstruct its ambitious and strategic goals. Recently, amid turbulent security and environmental conditions, the UAE signed Comprehensive Economic Partnership Agreements with Colombia and Costa Rica. These partnerships demonstrate that the UAE is committed to its objective of consolidating its status as a global trade hub and a primary gateway for the flow of goods and services to various continents worldwide.

Such visits enhance a positive approach to managing crises and learning lessons from them without getting trapped in them

In this context, Sheikh Tamim’s Asian tour – which includes visits to the Philippines, Bangladesh and Nepal – has paved the way for enhanced co-operation in the fields of energy, infrastructure and agriculture. The highlight of Sultan Haitham’s visit to the Emirates was the announcement of a railway network project between the two countries, with a total investment of $3 billion. This development marks a significant milestone in elevating bilateral relations to a new stage of strategic partnership, fostering vital interdependence and paving the way for a more ambitious shared future.

The UAE-Oman rail network is both a transport project and a strategic initiative that will enhance freight movement efficiency and regional connectivity. It will significantly reduce travel time and eliminate delays due to weather and traffic conditions. Each train will be able to seamlessly transport up to 15,000 tonnes of cargo between five major ports and more than 15 integrated cargo facilities in the two countries. The 303-kilometre route connecting Abu Dhabi with the Omani state of Sohar will adhere to the highest safety and environmental standards.

The passenger train will achieve speeds of up to 200 kilometres an hour, covering the distance between Abu Dhabi and Sohar in 100 minutes and between Al Ain and Sohar in 47 minutes. The cargo train, meanwhile, will operate at 120 kilometres an hour. In line with this promising trajectory, the UAE has formally confirmed its unwavering commitment to fostering co-operation with governments worldwide. It firmly believes that addressing global challenges requires collective action and a shared commitment to crafting unified visions for a safer and more prosperous future.

Ultimately, it is such initiatives that foster positive outlooks and counteract the pessimism fuelled by violent conflicts near and far. They also underscore the growing strategic significance of the Gulf, positioning it as one of the world’s critical regions poised to seize opportunities and assume a central role in shaping the future of international trade, transportation, energy and connectivity across Asia, Africa and Europe.

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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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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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Updated: April 24, 2024, 6:29 AM