The UAE is home to campuses of some of the top universities in the world, including New York University Abu Dhabi. Courtesy NYU
The UAE is home to campuses of some of the top universities in the world, including New York University Abu Dhabi. Courtesy NYU
The UAE is home to campuses of some of the top universities in the world, including New York University Abu Dhabi. Courtesy NYU
The UAE is home to campuses of some of the top universities in the world, including New York University Abu Dhabi. Courtesy NYU

If you think university education is too expensive, think again


  • English
  • Arabic

All this week I will be in one of the finest buildings in the world, Canterbury Cathedral, wearing an enormous cloak heavy with gold braid, and shaking hands with approximately 3,000 people, most of them in their early 20s. It’s an annual ritual and it has made me even more respectful of Britain’s Queen Elizabeth who - according to some estimates - may have shaken some 40,000 hands a year each year of the 65 years during which she has become the longest-serving monarch in British history. American politicians call such handshakes “grip-n-grins". If the estimates are correct then the Queen has been on grip-n-grin duty more than two million times. That’s a lot of handshakes. And a lot of gloves. Hers wear out quickly. In Canterbury Cathedral I will not need gloves, but I can vouch for the fact that shaking the hands of great numbers of people is exhausting. The grins are fine. It’s the grip I worry about, especially when the person whose hand I am about to shake is built like a rugby player and strides towards me with an expression suggesting he will pull my arm from my body.

But it’s worth it. I’m the chancellor of one of the United Kingdom’s most successful universities, the University of Kent. It’s a ceremonial post which means I formally award students their degrees, including PhDs. In every delighted face I see success and reflect how important this moment is for each one of them, as it was for me. Receiving my first degree was one of the most important days of my life. The former British Labour Party leader Neil Kinnock obviously felt much the same. Like me, Mr Kinnock - now Lord Kinnock - came from a humble background. And like me he was the first in his family to gain a degree. It caused him to wonder aloud, “why am I the first Kinnock in a thousand generations to be able to get to university?” The answer in his case, and in mine, was not just in passing exams in school. The real reason was that someone else - the British taxpayer - paid for it all. It’s not quite like that anymore.

All across the world, as students go home for the summer, finish their courses and collect their awards and degrees, they and their families add up the costs of a university education and consider the benefits. British tuition fees are capped at £9,000 (Dh42,600) per person a year, but add in living costs and some students are leaving university with an an average debt totalling an eye-watering £50,000. For comparison, average university debt in the United States appears to be about $23,000. So, is it worth it? The simple answer in most cases is - yes, definitely.

When I visit universities in the UAE, the US and across Europe, I see the faces of the leaders of tomorrow. The degree certificates my students receive are not just pieces of paper, they are keys - keys to unlock a better future. Moreover, worldwide the university sector is growing, thriving and big business. Students are good for the local economy, good for the future, good for their countries and especially good for creating understanding between people of different faiths, cultures and backgrounds. In the UAE, some of the best universities in the world - New York University Abu Dhabi and the Paris Sorbonne are just two examples - have opened study centres, branches or mini campuses. My university has study centres in a number of European capitals. This is the real melting pot of the 21st century. It is how dialogues and friendships begin.

But someone has to pay for it. My generation in Britain thought it was free, because for us, it was. But nowadays so many more people are qualified to go to university that the old system of no tuition fees cannot add up. Who wants to raise taxes on everyone to pay for the education of those who in the future will earn most? Who wants to cut the number of students? Who wants to cut the money universities receive and therefore destroy standards in a very competitive world market? Nevertheless, the British system of funding needs to change. Many students are forced to take out huge loans, which as many as three quarters of them are expected never to repay. Interest rates on these loans are too high. But for me the principle is simple: people who benefit from a wonderful education should be responsible for paying for some of it. But entire nations benefit from having smart graduates, so the taxpayer should pay a large slice too. And students from poor backgrounds should be helped the most, because I want to hear many more people saying they are the first in their family in a thousand generations to gain a university degree. I will gladly present them with their much deserved certificate. And as I do so I will be thinking of a bumper sticker I saw on a car driven by a student at American University in Washington, DC.

“If you think education is expensive,” it said. “Try ignorance.”

Gavin Esler is a journalist, television presenter and author

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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.”

Race card

5.30pm: Maiden (TB) Dh82,500 (Turf) 1,400m

6.05pm: Handicap (TB) Dh87,500 (T) 1,400m

6.40pm: Handicap (TB) Dh105,000 (Dirt) 1,400m

7.15pm: Handicap (TB) Dh105,000 (T) 1,200m

7.50pm: Longines Stakes – Conditions (TB) Dh120,00 (D) 1,900m

8.25pm: Zabeel Trophy – Rated Conditions (TB) Dh120,000 (T) 1,600m

9pm: Handicap (TB) Dh105,000 (T) 2,410m

9.35pm: Handicap (TB) Dh92,500 (T) 2,000m

Disclaimer

Director: Alfonso Cuaron 

Stars: Cate Blanchett, Kevin Kline, Lesley Manville 

Rating: 4/5

Our legal consultant

Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

ACL Elite (West) - fixtures

Monday, Sept 30

Al Sadd v Esteghlal (8pm)
Persepolis v Pakhtakor (8pm)
Al Wasl v Al Ahli (8pm)
Al Nassr v Al Rayyan (10pm)

Tuesday, Oct 1
Al Hilal v Al Shorta (10pm)
Al Gharafa v Al Ain (10pm)

How to watch Ireland v Pakistan in UAE

When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

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