The Indian and Chinese operations to evacuate their respective citizens from Yemen illustrate both countries’ very different equation with – and footprint in – the Gulf region. India continues to evacuate its citizens. By Tuesday, just half of the estimated 4,000 were out. Many of the rest are described as loathe to leave. But China quickly extracted its small number – barely 600 – of workers within days of the start of the Gulf coalition’s air campaign against the Houthi rebels. It was a surgical operation and there seemed to be no signs of lingering regret among the departing Chinese.
This is less to do with Chinese people’s stereotypical inscrutability and Indians’ supposed emotionalism than with straightforward economics and a bit of history.
The Indians are passionate for practical reasons. Those lingerers in Yemen know that they have few prospects at home and are willing to sit out the fighting and instability. If they leave, they fear they may never be able to return and the venture will have proved unsustainably costly in terms of unpaid loans taken out for that life-changing golden passage to the Gulf.
For the Chinese, whose typical profile in the Gulf region is either in a Chinese business or in a full-service (management and labour) Chinese construction company, if there is any return, it will be managed at the appropriate time and in the appropriate way. The Gulf is important to China as a source of oil, an export market for cheap wares, geopolitical strategising, inward investment, construction contracts, and latterly, even as a tourist destination for high net worth travellers. But this region is not the fulcrum of the hopes and dreams of the Chinese, as it has been for Indians, particularly the lower echelons of society, for nearly half a century.
Gulf Indian workers are at their highest number today. As the widespread availability of Indian products – Mysore sandal soap, Amla hair oil – shows, at 6 million, they are the largest ethnic group in the six GGC countries’ 20 million migrant worker population. There has been large scale Indian migration to the Gulf in the last 40 years starting with 40,000 in the 1970s.
But Indian engagement with the Gulf extends much further back in time. In 1882, the Consul-General of Baghdad was informing the secretary, foreign department of the government of India that 3,000 Indians permanently resided "in Mesopotamia". In 1910, Abdul Ali, a prosperous Indian merchant who ran an ice factory in Baghdad, became famous for his public musings on the virtues of renouncing British nationality for Turkish because of the continuing property dispute between British and Ottoman officials. And in 1916, when Cursetjee Manockjee Cursetjee, retired judge of the Bombay High Court, sailed up the Gulf and called at numerous ports upstream, he marvelled at "the use of Hindustani, India's lingua franca. [It] has already to a small extent found its way in the bazaars on the Gulf shores, where many petty Indian traders have gone and settled. If trade follows the flag, language follows trade and this fact will now be largely developed by the immense influx into middle-Asia of Indians whether as soldiers, civilians, camp followers and office-dependents".
The current picture is somewhat similar, though marginally less colourful. The Gulf Indians are now the second largest overseas Indian community in any geographical region (south east Asia has the largest) and account for more than one-third of the annual $69 billion remittances by Indian expatriates to India. As American anthropologist Andrew Gardner wrote in City of Strangers, a carefully observed account of Gulf migration: “Behind the migrant workers are spouses, children, parents, siblings and debt. In boarding a plane to the Gulf, they gaze to an uncertain horizon where goals like marriage and its incumbent costs, the construction of a home, the purchase of agricultural land, or the accumulation of capital to start a small business in India will, someday, perhaps be within grasp. Their tenure in the Gulf is short, or at least it begins with the idea of a few two-year contracts followed by a return home to build upon the savings collected during their time abroad.”
But prospects in the region are becoming more fluid and changing, so much so that the passions awakened in Indian breasts during the Yemen evacuation may seem outdated within a mere half-century.
There are two reasons for this: Arabisation policies and concerted attempts by Indians to push for higher wages for its workers. At some point soon, the GGC countries, especially Saudi Arabia and the UAE, which employ the most Indians, will want only the irreplaceable ones. This will mean two different sorts of worker: highly-skilled white collar and blue-collar ones banded together in Indian companies that imitate those full-service Chinese entities, which is to say recruiting, bringing in and managing teams for specific jobs and removing them as needed.
That’s very distinct from sourcing individual labourers from India, as now, but it also mitigates the possibility of trouble in the way of the lower-cost Nepalese who have been particularly vocal about migrant worker rights.
The Gulf Indian worker’s profile has already changed in the past 25 years. It has gone from 90 per cent unskilled blue-collar to 35 per cent white-collar workers.
As it evolves further, the implications will be profound. White-collar Indian workers will have more options and will be less reluctant to leave, say, a war zone like Yemen. And the banded blue-collar ones will be extracted clinically, just as happened with the Chinese from Sanaa and Aden. Either way, that passionately practical Indian engagement with the Gulf will be immeasurably altered.
rroshanlall@thenational.ae
On Twitter: @rashmeerl
Company profile
Company name: Fasset
Started: 2019
Founders: Mohammad Raafi Hossain, Daniel Ahmed
Based: Dubai
Sector: FinTech
Initial investment: $2.45 million
Current number of staff: 86
Investment stage: Pre-series B
Investors: Investcorp, Liberty City Ventures, Fatima Gobi Ventures, Primal Capital, Wealthwell Ventures, FHS Capital, VN2 Capital, local family offices
The specs: Lamborghini Aventador SVJ
Price, base: Dh1,731,672
Engine: 6.5-litre V12
Gearbox: Seven-speed automatic
Power: 770hp @ 8,500rpm
Torque: 720Nm @ 6,750rpm
Fuel economy: 19.6L / 100km
Confirmed bouts (more to be added)
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Tickets for the August 3 Fight Night, held in partnership with the Department of Culture and Tourism Abu Dhabi, went on sale earlier this month, through www.etihadarena.ae and www.ticketmaster.ae.
SPECS
Nissan 370z Nismo
Engine: 3.7-litre V6
Transmission: seven-speed automatic
Power: 363hp
Torque: 560Nm
Price: Dh184,500
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COMPANY PROFILE
Name: Kinetic 7
Started: 2018
Founder: Rick Parish
Based: Abu Dhabi, UAE
Industry: Clean cooking
Funding: $10 million
Investors: Self-funded
COMPANY PROFILE
Company: Eco Way
Started: December 2023
Founder: Ivan Kroshnyi
Based: Dubai, UAE
Industry: Electric vehicles
Investors: Bootstrapped with undisclosed funding. Looking to raise funds from outside
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Starring: Ryan Reynolds, Hugh Jackman, Emma Corrin
Director: Shawn Levy
Rating: 2.5/5
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Starring:+Glen+Powell,+Daisy+Edgar-Jones,+Anthony+Ramos
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Babumoshai Bandookbaaz
Director: Kushan Nandy
Starring: Nawazuddin Siddiqui, Bidita Bag, Jatin Goswami
Three stars
SPECS
Engine: Two-litre four-cylinder turbo
Power: 235hp
Torque: 350Nm
Transmission: Nine-speed automatic
Price: From Dh167,500 ($45,000)
On sale: Now
The specs
Engine: Single front-axle electric motor
Power: 218hp
Torque: 330Nm
Transmission: Single-speed automatic
Max touring range: 402km (claimed)
Price: From Dh215,000 (estimate)
On sale: September
Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
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97% of Jewish-Americans are concerned about the rise in anti-Semitism
76% of US Jewish voters believe Donald Trump and his allies in the Republican Party are responsible for a rise in anti-Semitism
74% of American Jews agreed that “Trump and the Maga movement are a threat to Jews in America"
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Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
Company Profile
Company name: Namara
Started: June 2022
Founder: Mohammed Alnamara
Based: Dubai
Sector: Microfinance
Current number of staff: 16
Investment stage: Series A
Investors: Family offices
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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Second Test
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Entrance is free
ROUTE TO TITLE
Round 1: Beat Leolia Jeanjean 6-1, 6-2
Round 2: Beat Naomi Osaka 7-6, 1-6, 7-5
Round 3: Beat Marie Bouzkova 6-4, 6-2
Round 4: Beat Anastasia Potapova 6-0, 6-0
Quarter-final: Beat Marketa Vondrousova 6-0, 6-2
Semi-final: Beat Coco Gauff 6-2, 6-4
Final: Beat Jasmine Paolini 6-2, 6-2
About Krews
Founder: Ahmed Al Qubaisi
Based: Abu Dhabi
Founded: January 2019
Number of employees: 10
Sector: Technology/Social media
Funding to date: Estimated $300,000 from Hub71 in-kind support
The specs
Engine: 2.0-litre four-cylinder turbo
Power: 178hp at 5,500rpm
Torque: 280Nm at 1,350-4,200rpm
Transmission: seven-speed dual-clutch auto
Price: from Dh209,000
On sale: now
Zayed Sustainability Prize
The specs: 2019 BMW i8 Roadster
Price, base: Dh708,750
Engine: 1.5L three-cylinder petrol, plus 11.6 kWh lithium-ion battery
Transmission: Six-speed automatic
Power: 374hp (total)
Torque: 570Nm (total)
Fuel economy, combined: 2.0L / 100km
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Hydrogen: Market potential
Hydrogen has an estimated $11 trillion market potential, according to Bank of America Securities and is expected to generate $2.5tn in direct revenues and $11tn of indirect infrastructure by 2050 as its production increases six-fold.
"We believe we are reaching the point of harnessing the element that comprises 90 per cent of the universe, effectively and economically,” the bank said in a recent report.
Falling costs of renewable energy and electrolysers used in green hydrogen production is one of the main catalysts for the increasingly bullish sentiment over the element.
The cost of electrolysers used in green hydrogen production has halved over the last five years and will fall to 60 to 90 per cent by the end of the decade, acceding to Haim Israel, equity strategist at Merrill Lynch. A global focus on decarbonisation and sustainability is also a big driver in its development.
COMPANY PROFILE
Name: SmartCrowd
Started: 2018
Founder: Siddiq Farid and Musfique Ahmed
Based: Dubai
Sector: FinTech / PropTech
Initial investment: $650,000
Current number of staff: 35
Investment stage: Series A
Investors: Various institutional investors and notable angel investors (500 MENA, Shurooq, Mada, Seedstar, Tricap)
Specs: 2024 McLaren Artura Spider
Engine: 3.0-litre twin-turbo V6 and electric motor
Max power: 700hp at 7,500rpm
Max torque: 720Nm at 2,250rpm
Transmission: Eight-speed dual-clutch auto
0-100km/h: 3.0sec
Top speed: 330kph
Price: From Dh1.14 million ($311,000)
On sale: Now
THE SPECS
GMC Sierra Denali 1500
Engine: 6.2-litre V8
Transmission: 10-speed automatic
Power: 420hp
Torque: 623Nm
Price: Dh232,500
A QUIET PLACE
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Rating: 4/5