The opening ceremony of the Sheikh Zayed Heritage Festival. (Wam)
The opening ceremony of the Sheikh Zayed Heritage Festival. (Wam)
The opening ceremony of the Sheikh Zayed Heritage Festival. (Wam)
The opening ceremony of the Sheikh Zayed Heritage Festival. (Wam)

UAE honours the past and present


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In hosting the final race of the Formula One racing season today, Abu Dhabi is presenting itself to the world as a modern, progressive hub for sport and entertainment and a destination for tourists from across the globe. As The National reported over the weekend, tens of thousands of fans from around the world have descended on the capital to attend the Etihad Airways Abu Dhabi Grand Prix.

Tourists and residents alike have had the opportunity to rub shoulders with celebrities as they watch a yacht show, attend concerts featuring international acts, and dip into exciting art, fashion and food events, all presented under the umbrella of the Yasalam 2014 festival.

Beyond the glitz and glamour, however, are some other activities, which are equally, or more, significant. One is the Sheikh Zayed Heritage Festival, which offers a glimpse into the UAE's past by offering educational and entertainment activities, including traditional performances, falconry, rifle shooting, sailing and camel racing, along with museum displays of Emirati history with thousands of performers taking part.

Another is the Journey of the Union, a 10-day odyssey that started this weekend and aims to introduce a group of Emirati students aged between 15 and 17 to the history of the country and the achievements of each of the seven emirates over the past 43 years. These events may not be internationally celebrated in the way of F1, but they are no less important. They reflect the UAE's vision and its quiet determination to hold onto its roots while it undergoes a period of rapid development.

It’s of utmost importance that, even as the UAE moves forward at the speed of an F1 car, young Emiratis do not lose touch with the history, culture and traditions that make this country unique. As Sheikh Zayed, the founder of the nation, once said: “Those who don’t know their past don’t know their future.”

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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.”

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China

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UAE

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Japan

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Norway

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Canada

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Singapore

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Australia

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Saudi Arabia

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South Korea

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Date started: 2014

Founders: Maaz Sheikh, Danny Bates

Based: Dubai, UAE

Sector: Entertainment/Streaming Video On Demand

Number of employees: 125

Investors/Investment amount: $125 million. Major investors include Starz/Lionsgate, State Street, SEQ and Delta Partners

Company%20Profile
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Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)

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