Imran Khan, head of Pakistan Tehreek-e-Insaf party, will be the country's next prime minister. Anjum Naveed / AP
Imran Khan, head of Pakistan Tehreek-e-Insaf party, will be the country's next prime minister. Anjum Naveed / AP
Imran Khan, head of Pakistan Tehreek-e-Insaf party, will be the country's next prime minister. Anjum Naveed / AP
Imran Khan, head of Pakistan Tehreek-e-Insaf party, will be the country's next prime minister. Anjum Naveed / AP

With the powerful military, Khan can only do so much


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I refer to your thought-provoking editorial Imran Khan has a real opportunity to end India-Pakistan conflict (July 30): it is true that Mr Khan will have a tough job managing the military in Pakistan after he assumes the office of prime minister, if he leans towards friendship with India. You are right that it will be a "baptism by fire" if he tries to control the military on foreign policy. The fact is that if Mr Khan gets into a conflict with the military in Pakistan, he will be eased out.

The military is the most powerful group in Pakistan. It will continue to be so. In 70 years of Pakistan’s history, whenever any prime minister has confronted the military, he or she has been ousted or exiled.

The military will always be dominant in Pakistan because it has ensured that the country shares its paranoia about India. In my opinion, Indians would love to live in peace with Pakistan. But if Indians and Pakistanis embrace each other, then the supremacy of the military in Pakistan would be diluted. The raison d’etre of Pakistan’s military is an unfounded phobia of India. It might not have a large say or role in the country if India and Pakistan co-operate. The best that we can hope for is continuing efforts towards peace between the two countries, without another armed conflict. Mr Khan might have to accept this bitter truth and foster friendship between the people of both nations.

Rajendra Aneja, Dubai

Youngsters need experience in the UAE’s private sector

I write in reference to your editorial Helping youngsters to enter private sector is crucial (July 30): this was an interesting read. The proposal to allow students over the age of 15 to take up part-time private sector jobs is a good and welcome gesture. It will pave the way for them to enter high-level jobs and this part-time experience will help. In the West, many students are being encouraged to do part-time jobs and internships to gain experience and meet their study expenses.

K Ragavan, Denver

Abandoned Gussy’s plight tugs at our heartstrings

In reference to your story Abandoned Abu Dhabi cat Gussy receives 'overwhelming' response from readers (July 23), Gussy is but one of thousands of stray and abandoned cats and dogs in the UAE. This is a huge problem, which anyone involved in any way with stray and abandoned animals would know. Why shouldn't this receive attention? Humans throw their unwanted pets away like garbage and it takes others with a heart to pick up the pieces. If a cat sitting at a bus stop loyally for weeks, waiting for a cold, heartless owner to return, doesn't tug at the heartstrings, I don't know what will.

Elize van Wyk, Dubai

I gave a home to an abandoned cat tossed into the street. It cost me a fortune in vet bills because he needed an operation but I’m so glad he is part of our family now. He is very special. I just feel heartbroken for all the other cats and dogs out there on the streets.

Michelle Grissa, Dubai

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AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street

The seven points are:

Shakhbout bin Sultan Street

Dhafeer Street

Hadbat Al Ghubainah Street (outbound)

Salama bint Butti Street

Al Dhafra Street

Rabdan Street

Umm Yifina Street exit (inbound)

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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