A vendor decorates his toy store ahead of the New Year in Kuwait City. AFP
A vendor decorates his toy store ahead of the New Year in Kuwait City. AFP
A vendor decorates his toy store ahead of the New Year in Kuwait City. AFP
A vendor decorates his toy store ahead of the New Year in Kuwait City. AFP

Here's to 2021 being a landmark recovery year


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Last year, triggered by Covid-19, the world ground to a halt before it learnt to adapt to an unimaginably tough set of circumstances. Over 1.8 million people died, millions fell ill and systems around the world were stretched to breaking point. The working world moved online. Education, aviation, tourism and numerous other sectors faced massive global disruptions. But despite an atmosphere of global bleakness, vaccines were discovered in record time and impressively, even began to be rolled out. People across the world got used to the many changes in their daily lives. The year 2020 reminded us that people can face massive upheavals and still survive. This realisation bodes well at the start of the new year. Hearteningly, in crucial sectors, the foundation work for a return to a functional normality is already in place.

The year 2020 reminded us that people can face massive upheavals and still survive

But how does a world that has been so immensely disrupted go about a recovery? The pay-off will lie in a gradual, consistentcy; much like the complicated process of inoculating billions, in the right order – vulnerable and elderly first – against the virus. The UAE has already started vaccinating people throughout the country and this healthy curve is bound to be maintained. Take the Sinopharm vaccine, for example, that can now be availed across the UAE. And the news that Dubai plans to immunise 70 per cent of its population by the end of 2021. All these positive developments were unimaginable until even six months ago.

An economic recovery sits alongside the recovery from the virus. It is too soon to tell how a damaged economy will affect our politics in the future. Multilateralism seems to have done its advocates well last year. Institutions threatened by populism such as the European Union have weathered the storm. Compared to some other nations, the UAE is in an enviable spot – it can claim a remarkable response to Covid-19. Right from the early days of the pandemic, it stressed the necessity of testing, of wearing masks, adherence to sound medical advice like social distancing – all of which have cumulatively helped residents and citizens of the country feel secure and in safe hands. Trust in those overseeing the pandemic response was high and people largely adhered to measures. This is a claim that some of the most advanced nations sadly cannot make.

In the UAE, much hard work has gone into paving the way for 2021. Despite the anxieties of the past year, we have entered 2021 with cautious optimism. There is reason to believe that the country will be able to strike the necessary balance between recovery and reality. In a little over a month, UAE's Hope Probe will reach Mars. Even the pandemic did not get in the way of that launch in July last year. There is no doubt that the February landing will give us something to cheer, a note that one can reasonably envision will offset the more sobering realities of Covid-19.

Despite the obvious hurdles, the UAE has a lot to look forward to this year. Not least of all the Expo in Dubai. Already four new metro stations have opened. Other gradual unveiling of infrastructure progress is expected to continue, both with regard to the Expo as well as the UAE equipping itself for the future. We will throughout the year see evidence of how nation-building has carried on despite all odds.

The effects of the targeted stimulus packages in the UAE will begin to unfold. The country's big reforms too will start to bear fruit. But challenges remain. And while the "bounce back" to financial normality and life as we used to live it will take time, possibly years, we must embark upon the new year with positivity and the clear sightedness that 2021 will be a landmark year in terms of recovery and laying the ground for the decade ahead.

MATCH INFO

Rugby World Cup (all times UAE)

Final: England v South Africa, Saturday, 1pm

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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.”

In numbers: China in Dubai

The number of Chinese people living in Dubai: An estimated 200,000

Number of Chinese people in International City: Almost 50,000

Daily visitors to Dragon Mart in 2018/19: 120,000

Daily visitors to Dragon Mart in 2010: 20,000

Percentage increase in visitors in eight years: 500 per cent

THE BIO: Martin Van Almsick

Hometown: Cologne, Germany

Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)

Favourite dessert: Umm Ali with dark camel milk chocolate flakes

Favourite hobby: Football

Breakfast routine: a tall glass of camel milk

The Lowdown

Us

Director: Jordan Peele

Starring: Lupita Nyong'o, Winston Duke, Shahadi Wright Joseqph, Evan Alex and Elisabeth Moss

Rating: 4/5

Classification of skills

A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation. 

A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.

The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000. 

APPLE IPAD MINI (A17 PRO)

Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits

Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine

Storage: 128/256/512GB

Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4

Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps

Biometrics: Touch ID, Face ID

Colours: Blue, purple, space grey, starlight

In the box: iPad mini, USB-C cable, 20W USB-C power adapter

Price: From Dh2,099

COMPANY PROFILE
Name: Akeed

Based: Muscat

Launch year: 2018

Number of employees: 40

Sector: Online food delivery

Funding: Raised $3.2m since inception 

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Paris Can Wait
Dir: Eleanor Coppola
Starring: Alec Baldwin, Diane Lane, Arnaud Viard
Two stars

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Scoreline

UAE 2-1 Saudi Arabia

UAE Mabkhout 21’, Khalil 59’

Saudi Al Abed (pen) 20’

Man of the match Ahmed Khalil (UAE)

The Meg
Director: Jon Turteltaub
Starring:   
Two stars

SPECS
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MATCH INFO

Alaves 1 (Perez 65' pen)

Real Madrid 2 (Ramos 52', Carvajal 69')

SQUADS

UAE
Mohammed Naveed (captain), Mohamed Usman (vice-captain), Ashfaq Ahmed, Chirag Suri, Shaiman Anwar, Mohammed Boota, Ghulam Shabber, Imran Haider, Tahir Mughal, Amir Hayat, Zahoor Khan, Qadeer Ahmed, Fahad Nawaz, Abdul Shakoor, Sultan Ahmed, CP Rizwan

Nepal
Paras Khadka (captain), Gyanendra Malla, Dipendra Singh Airee, Pradeep Airee, Binod Bhandari, Avinash Bohara, Sundeep Jora, Sompal Kami, Karan KC, Rohit Paudel, Sandeep Lamichhane, Lalit Rajbanshi, Basant Regmi, Pawan Sarraf, Bhim Sharki, Aarif Sheikh

THE DETAILS

Deadpool 2

Dir: David Leitch

Starring: Ryan Reynolds, Josh Brolin, Justin Dennison, Zazie Beetz

Four stars

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Gulf Under 19s final

Dubai College A 50-12 Dubai College B

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MATCH INFO

Tottenham Hotspur 0 Everton 1 (Calvert-Lewin 55')

Man of the Match Allan (Everton)