The chukudu is a low-tech Congolese solution to providing transport. Photo: John Henzell
The chukudu is a low-tech Congolese solution to providing transport. Photo: John Henzell
The chukudu is a low-tech Congolese solution to providing transport. Photo: John Henzell
The chukudu is a low-tech Congolese solution to providing transport. Photo: John Henzell

For the impoverished Congolese, the UAE is the impossible dream


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America, the aphorism goes, is as much an idea as it is a place – somewhere one’s success is determined primarily by skill and hard work, rather than connections and cronyism.

Even if reality in the United States seems increasingly at odds with that idea, for a century or more the country has reaped the rewards of being a magnet for aspiring entrepreneurs from across the globe.

And when the Burj Al Arab suddenly appeared on a television screen in the midst of my journey on Lake Kivu in the conflict-blighted eastern region of the Democratic Republic of Congo a few weeks ago, it struck me that a similar dynamic applies to Dubai.

I was on a speedboat, the existence of which exemplified the improving security situation after decades of warfare and insurgency. It reduced the journey from Goma and Bukavu, the respective capitals of North and South Kivu provinces, to just two hours instead of the 12 hours it took the ancient, slow and rusty ferry that had been plying the lake since long before the DRC gained independence from Belgium in 1960.

After being frisked for weapons as part of the boarding procedure – security might be improved but there are still good reasons why most developed countries have do-not-travel advisories for this region – a crewman turned on the widescreen television and began playing a decade-old documentary about the construction of the Burj Al Arab.

In this country, most of us are desensitised to developments of this kind and the Burj Al Arab, a landmark in Dubai’s development when it opened in 1999, has long since been eclipsed by the Palm Jumeirah, the Burj Khalifa and similar megaprojects for which the city has a global reputation.

But to those trying to eke a living amid the abject dysfunction of the DRC, the documentary must have seemed like a science fiction movie.

This was illustrated by the city we had just left, Goma, which is dominated by three forms of transport. One is big new 4x4s belonging to the United Nations or the dozens of NGOs trying to restore order in the city. Another is the chukudu, a crude home-made wooden bicycle that looks like something out of The Flintstones and is used to transport goods. The third is the fleet of underemployed young men touting for business on boda-boda motorcycle taxis.

But the presence of opulent and heavily-fortified mansions on the lakefront showed that some people were doing very well in the midst of the grinding poverty experienced by the vast majority of Goma’s million residents. More than half of them are former rural people who abandoned their lands for the security and stability of the city. The legions of young men plying the streets selling cheap leather belts and sunglasses spoke tellingly about career prospects for the young.

Life seemed no easier or fairer when we disembarked in Bukavu at the southern end of the lake. The potholed streets reflected decades of near-constant conflict and complete neglect by the central government in Kinshasa, more than 1,500km away.

Although the most basic amenities – water, power and sewerage – worked, the roads were more pothole than tarmac. The packs of young people hanging around on the street with nothing to do reflected a generation denied opportunities to make the most of their abilities.

To them, seeing the story of how the Burj Al Arab was conceived and then built must have reflected a sense of boundless possibility that was completely at odds with their day-to-day reality.

Is it any wonder that, in this context, Dubai – and to a lesser extent the UAE in general – has the same appeal America does in the dreams of the poor huddled masses, yearning to breathe free? And unlike the modern US, the UAE still welcomes people from nearly all nationalities who have the skills to help develop this country.

There was always a spark of interest when the Congolese I met heard I lived and worked in the UAE. Their next question was nearly always about the prospects of working here themselves and even if they were shocked by how much I paid in rent, it was obvious that many of them saw the UAE as a place where success really was directly related to ability and hard work.

The US has been richly rewarded by the skilled and motivated people who were attracted by the potential to prosper. For those in central Africa and far beyond, the UAE still offers that promise and this country will reap the benefits.

JHenzell@thenational.ae

Anghami
Started: December 2011
Co-founders: Elie Habib, Eddy Maroun
Based: Beirut and Dubai
Sector: Entertainment
Size: 85 employees
Stage: Series C
Investors: MEVP, du, Mobily, MBC, Samena Capital

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.”

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

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Gulf Under 19s

Pools

A – Dubai College, Deira International School, Al Ain Amblers, Warriors
B – Dubai English Speaking College, Repton Royals, Jumeirah College, Gems World Academy
C – British School Al Khubairat, Abu Dhabi Harlequins, Dubai Hurricanes, Al Yasmina Academy
D – Dubai Exiles, Jumeirah English Speaking School, English College, Bahrain Colts

Recent winners

2018 – Dubai College
2017 – British School Al Khubairat
2016 – Dubai English Speaking School
2015 – Al Ain Amblers
2014 – Dubai College

The specs

Engine: 8.0-litre, quad-turbo 16-cylinder

Transmission: 7-speed auto

0-100kmh 2.3 seconds

0-200kmh 5.5 seconds

0-300kmh 11.6 seconds

Power: 1500hp

Torque: 1600Nm

Price: Dh13,400,000

On sale: now

'I Want You Back'

Director:Jason Orley

Stars:Jenny Slate, Charlie Day

Rating:4/5