Hajj's celebration of faith lights up some dark times

This year’s annual Hajj pilgrimage, which begins on Friday, is an intriguing mix of the modern and the timeless. Saudi officials preparing to receive an estimated 1.8 million pilgrims from across the Muslim world are using the latest technology and devoting considerable resources to ensuring this vast cross-section of humanity will have a safe and enriching experience.

Free Wi-Fi, smart services, 18 hospitals and 126 health centres equipped at holy sites, the Makkah Route that enables people travelling from 11 locations in seven countries to complete Saudi entry formalities at their home airports, as well as special help for sick and elderly pilgrims are just a few examples of the complex logistics at work. Millions of pilgrims will stay in air-conditioned, fire-resistant tents in Mina, a 20-square-kilometre site that comes to life during the pilgrimage. There is no doubt about it – managing such a large event is an immense challenge

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And yet, some things remain unchanged. The nearly two million Muslims who will fulfil their religious obligation to perform the Hajj – five days of spiritual renewal expressed through historic rituals – are retracing the steps of millions of fellow believers down through the centuries who have followed the example of the Prophet Mohammed, who performed his pilgrimage in 632AD. As with preceding generations of Muslims, for many, this year’s Hajj is a once-in-a-lifetime experience. Muslims from an array of countries and cultures will be setting their eyes on Makkah and the other pilgrimage sites for the first time.

With temperatures over the next week expected to be well over 40ºC, this will be a physically arduous experience, even with all the modern help at hand. In addition, many pilgrims will have saved for years to be able to afford this special journey. This self-denial with a spiritual purpose chimes with the theme of sacrifice that characterises Eid Al Adha, a hugely important festival that concludes Hajj rituals.

Elsewhere in the Islamic world, hardship of a different kind is taking place. In the forefront of many pilgrims’ thoughts and prayers will be the suffering of the Palestinian people – including many would-be pilgrims trapped in the war zone that is Gaza. Earlier this month, The National interviewed Ahmad Al Kahlout, 68, a Gazan who has been waiting for decades to perform Hajj. Every year, he entered his name in the Hajj draw, but despite being chosen this year, he will likely not be able to take part because of the war and Israel’s move to close the Rafah border crossing with Egypt.

“Every time I hear news about pilgrims arriving from all over the world in Saudi Arabia in preparation for the Hajj season, I feel very sad and think to myself whether we will live long enough to experience it in the coming years," he said. Sadly, Mr Al Kahlout’s experience is not unique – because of the war, thousands of Gazans who have been bereaved, injured or left homeless, are also being denied the solace and comfort that religious faith and practice can provide in dark times.

It is these dark times that give this year’s Hajj an added poignancy. As a demonstration of faith and community, the coming together of humanity in Saudi Arabia over the next few days will be a powerful display of unity and spirituality. It is exactly these kinds of values that are needed now more than ever.

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.”