South Korean President Moon Jae-in shakes hands with North Korean leader Kim Jong-un after watching a performance at the May Day Stadium in Pyongyang, North Korea on September 19. Reuters
South Korean President Moon Jae-in shakes hands with North Korean leader Kim Jong-un after watching a performance at the May Day Stadium in Pyongyang, North Korea on September 19. Reuters
South Korean President Moon Jae-in shakes hands with North Korean leader Kim Jong-un after watching a performance at the May Day Stadium in Pyongyang, North Korea on September 19. Reuters
South Korean President Moon Jae-in shakes hands with North Korean leader Kim Jong-un after watching a performance at the May Day Stadium in Pyongyang, North Korea on September 19. Reuters

Kudos to Trump and the two Koreas for pursuing peace


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  • Arabic

I write in reference to your encouraging report North Korea willing to dismantle missile test site and allow in inspectors (September 19): it is heartening to see the leaders of South and North Korea meet and try to put a stop to the enmities of the past. They have also agreed to connect the two countries through rail and road networks. More importantly, the regular people of the two countries will now have an opportunity to meet their relatives and friends on the other side of the DMZ after decades of separation without contact. Congratulations to the two countries, and also to US President Donald Trump for his unorthodox but impressive initiatives to bring the two countries closer together after decades of animosity.

Hopefully some day India and Pakistan will also bury the historical hatchet where it belongs and awaken to a new morning of co-operation and friendship.

Rajendra Aneja, Dubai

Syria has become a tug of war for domination

After reading your article Moscow says its Syrian ally shot down Russian plane (September 19), I am forced to ask: what else does Russia expect from its ally Syria under Bashar Al Assad? Death and destruction are Mr Al Assad's modus operandi, when he should be prioritising peace. And Russia remains an ally amid all of this. Finding peace requires a combined effort. But what hope is there when superpowers are embroiled in a tug of war for domination?

Name withheld by request

Warm wishes to both the Indian and Pakistani cricket teams

I refer to your article The UAE's 'home' game: India and Pakistan cricket fans get ready for latest chapter in fierce sporting rivalry (September 19). The landmark Asian Cup match between India and Pakistan in Dubai was very good news for the residents of the UAE. ­Millions of people – Indians, Pakistanis and other nationalities – watched on television and in the stadium. More than two decades ago, India and ­Pakistan played in Sharjah Cricket Stadium and later stopped for security reasons. The return of this meeting of teams has been rightly heralded.

I watched many matches in Sharjah Stadium when I was living in the UAE and enjoyed the immense spirit of the UAE’s cricket fans, who deserve to be entertained by both national teams. ­Ultimately, feats of sporting prowess should be admired, whatever the result. Given the weighty expectations on both sides, I wished both of them good luck.

K Ragavan, Bengaluru

Sometimes mergers and acquisitions don’t help

I write in reference to your ­article In a lather: Shopper's dismay after receiving soap ­instead of Dh2k phone in delivery mix-up (September 19): if this was Amazon, they would let you keep whatever was delivered by mistake and ship your items immediately. I hoped Souq would improve when Amazon bought it, but apparently I was wrong.

Carmen Page, Dubai

While you're here ...

Damien McElroy: What happens to Brexit?

Con Coughlin: Could the virus break the EU?

Andrea Matteo Fontana: Europe to emerge stronger

The biog

Favourite book: Animal Farm by George Orwell

Favourite music: Classical

Hobbies: Reading and writing

 

UAE currency: the story behind the money in your pockets
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Favourite book: ‘The Art of Learning’ by Josh Waitzkin

Favourite film: Marvel movies

Favourite parkour spot in Dubai: Residence towers in Jumeirah Beach Residence

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

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If you go...

Etihad Airways flies from Abu Dhabi to Kuala Lumpur, from about Dh3,600. Air Asia currently flies from Kuala Lumpur to Terengganu, with Berjaya Hotels & Resorts planning to launch direct chartered flights to Redang Island in the near future. Rooms at The Taaras Beach and Spa Resort start from 680RM (Dh597).

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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