Dubai - April 17 2012 - The exterior of a wind tower in Dubai's historic Bastakiya area. The majority of buildings, wind towers and residences in Bastakiya comprise of gypsum and stone and are thought to date back to as far as 1890. The historic area is now home so many guest houses, art cafes and galleries. (Razan Alzayani/ The National)
Dubai - April 17 2012 - The exterior of a wind tower in Dubai's historic Bastakiya area. The majority of buildings, wind towers and residences in Bastakiya comprise of gypsum and stone and are thoughtShow more

The UAE has a rich and ancient history of cultural exchange



We'll hear a lot during this Year of Tolerance about the UAE's open-hearted welcome for the diverse international communities that make up the overwhelming majority of the country's population. They come, so we're told, from around 200 countries, from every quarter of the globe, bringing to this land different languages, cultures and traditions, following many faiths, as they help to build the United Arab Emirates of today.

In my last column, I wrote of the fundamental role that the concept of tolerance plays in UAE society and argued that it can be explained as actively welcoming of the idea of diversity. It's important to acknowledge that from it come many of the strengths that make up our society.

The recognition of the value of that remarkable diversity is something that derives directly from the philosophy of the state developed by the nation’s Founding Father, the late Sheikh Zayed. As with so much about the country today, however, it goes back much further than that. If we look back into the history of the land that now makes up the United Arab Emirates, we can trace the welcoming of goods, ideas, traditions and people from other lands right back to the earliest origins of human settlement.

As far back as 7,500 years ago, trade by sea up and down the Arabian Gulf meant that goods from Mesopotamia – modern-day Iraq – reached here, brought on ships crewed, almost certainly, by foreign-born sailors. Appropriately, an artefact on display at Louvre Abu Dhabi bears testimony to that interchange, a pottery vessel from the Obaid civilisation in Iraq that was excavated a couple of decades ago on Abu Dhabi's western island of Marawah.

Later, in the Bronze Age, which began around 5,000 years ago, the ports of the Emirates were also trading with the empires of the Indus Valley, with goods also arriving from Central Asia. We can assume that merchants from those far-flung lands reached the Emirates too, bringing with them their languages and ideas. Certainly religious beliefs reached us from other areas, for an Iron Age cult belief connected to snakes that has been found widely throughout the Emirates – at Al Qusais, in Dubai, and at Bithna and Masafi in Fujairah, for example – has parallels elsewhere. Six centuries before the coming of Islam, the temple at Ed-Dur in Umm Al Quwain was dedicated to the pre-Islamic sun god Shams, known throughout Arabia. We know from the discovery of a monastery on Sir Bani Yas that Christianity had reached the UAE by the beginning of the seventh century AD. Meanwhile, an early medieval Jewish tombstone has been excavated in Ras Al Khaimah.

The cultural and commercial interchange was not just a matter of the arrival of goods and ideas. People from overseas didn’t arrive simply as traders; they came to settle as well. In the 15th century, residents of the Kingdom of Hormuz, which encompassed the great port of Julfar, in present-day Ras Al Khaimah, included merchants not just from throughout the Middle East, but from Venice, to the west, and from Russia, China, India, East Africa and elsewhere. Hormuz was described in 1472, decades before the first European imperial power, the Portuguese, reached the region, as “a vast emporium where there were peoples and goods of every description from all parts of the world.”  Some, surely, would have interacted with the people of the Emirates.

While it is difficult to determine the nature of the foreign communities in the Emirates during the medieval period, the picture begins to become clearer by the beginning of the 19th century. In 1823, according to a British report, the inhabitants of the growing town of Abu Dhabi, established half a century earlier, included a number of Indian "traders and goldsmiths," the forerunners of the UAE's large Indian population of today. By the latter part of the century, there was an influx of families from southern Iran into Dubai. New arrivals, from the town of Bastak, brought with them a new architectural technique, the barjeel or wind tower, some of which survive in Dubai's Bastakiya district.

And, although there has as yet, as far as I am aware, been little study of the topic, these incoming foreign communities also had an impact on the UAE’s native Arabic dialects. The word “bidfud”, meaning a large truck, which appeared only in the 1950s, is an adaptation of the name of the popular Bedford lorries that arrived around that time, but there must be many more words whose foreign origins can be traced back much further.

The welcoming of foreign cultures, traditions, beliefs, words and – yes – people into the Emirates has been part of our way of life since time immemorial. In the Year of Tolerance, I hope we will see not only more recognition that these exchanges took place, but also that they have played a large part in the making of today’s UAE. The richness of this history is just one of many reasons why the country is so well-equipped to play its part in an increasingly interconnected world.

Peter Hellyer is a consultant specialising in the UAE's history and culture

Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4

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.”