Symmetry plays an important role in Islamic art. UAE unlimited
Symmetry plays an important role in Islamic art. UAE unlimited
Symmetry plays an important role in Islamic art. UAE unlimited
Symmetry plays an important role in Islamic art. UAE unlimited


Rediscovering philosophy in the Gulf


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December 14, 2021

In the 7th century, Islam emerged in an area now encompassed by modern-day Saudi Arabia. At a speed unprecedented in the history of religion, the faith then spread across the Middle East, North Africa, Asia and Europe. But the episode was about more than the rise of a new religion. It also laid the foundations for an intellectual tradition that has produced some of history's most important cultural and scientific achievements.

Within a century of Islam's beginning, the Umayyad dynasty had established the huge Great Mosque of Damascus, an early marvel of Islamic architecture that still stands today. Just decades later, the Abbasid Dynasty began its patrimony of an era of blistering intellectual progress across maths, philosophy, poetry and art. Throughout history, countless Islamic golden eras have taken place, from Afghanistan to Morocco. Our lives would not have been the same without them.

Today, the Middle East and wider Islamic world still makes an important contribution to global culture. But some of the region's governments believe there is potential for even more cultural and intellectual clout. The UAE just hosted the World Conference on Creative Economy and is planning a major event on Islamic art with the Al Burda Festival next week.

In Saudi Arabia, leaders are trying to make the country a centre of modern philosophy. The most recent endeavour came last week with the first ever Riyadh Philosophy Conference, where high-profile scholars from around the world discussed the subject over the course of two days.

Michael Sandel gives a talk at the Riyadh Philosophy Conference. Saudi Ministry of Culture
Michael Sandel gives a talk at the Riyadh Philosophy Conference. Saudi Ministry of Culture

Organisers were frank about the event's intentions. “Philosophy was unwelcome in Saudi Arabia for decades and was considered a danger to society,” Abdullah Almutairi, an associate professor at King Saud University, told The National. Nowadays, according to Mr Almutairi, raising the profile of philosophical studies is part of a movement to get Saudi society "communicating with the world".

A wider push to boost the subject’s profile has seen the introduction of philosophy and critical thinking classes in schools. There is a particular focus on getting young people involved. Mohammed Hasan Alwan, a senior figure in the country's Ministry of Culture, says more understanding of the subject will help the next generation "adopt a more analytical approach and make them better equipped to navigate an increasingly complex world, not least the huge changes taking place within Saudi Arabia".

Across the Gulf, institutionalising philosophical understanding is becoming an important part of building a modern, tolerant identity. The UAE, for example, regularly hosts gatherings of leading religious scholars of all faiths. The work of Abdallah bin Bayyah, President of the Forum for Promoting Peace in Muslim Societies and Chairman of the UAE Fatwa Council, has been instrumental in convening these gatherings. Last year, the country set up the Mohamed bin Zayed University for Humanities, which offers bachelor's, master's and doctoral degrees in social studies, humanities and philosophy.

Tying together religion and philosophy in this manner is an attempt to rebuff those who view faith restrictively, which is only to be learnt about from the past. While history and doctrine are important in the modern identity of religions, they are only one part of a process that also includes future-focused endeavours and critical thinking.

More philosophy in the region, therefore, is not about moving on from the best aspects of the past. Rather, it is about harnessing the achievements of faith, with the best of modern tolerance and the intellectual life.

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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.”

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- Abdullah Ishnaneh, Partner, BSA Law 

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Updated: December 14, 2021, 3:00 AM