South Korean pop star Psy, centre, dance the 2014 Asian Games into action at the Incheon Asiad Main Stadium on September 19, 2014. Ed Jones /  AFP
South Korean pop star Psy, centre, dance the 2014 Asian Games into action at the Incheon Asiad Main Stadium on September 19, 2014. Ed Jones / AFP

Debts and empty seats taint start of 2014 Asian Games at Incheon



Asian Games competition begins in 20 sports on Saturday at Incheon, South Korea, but the prospect of empty stadiums and high debt for many years is already making the continent’s biggest sporting event feel unloved.

Much has been made of the US$32 billion (Dh117.5bn) in debt generated when the Chinese city of Guangzhou staged the Games four years ago.

Other Asian nations now appear leery of the planet’s second-biggest sports event after the Summer Olympics.

Yesterday, the Olympic Council of Asia executive board chose Indonesia to hold the 2018 Games after Vietnam withdrew this year, citing high costs.

There were no other candidates.

The mayor of South Korea’s third city admitted ahead of opening ceremonies last night that Incheon is in financial trouble over the cost, even for a Games billed as being low-cost.

Inhabitants are not convinced that the event, for which 17 new venues have been built for the sporting stars from across Asia, is worth it.

There is no queue of countries at the Olympic Council of Asia to put on future Asiads, which means hosting nearly 10,000 athletes and thousands of coaches, officials and journalists.

There were fewer than 100 people in the 41,000-seat Goyang Stadium when Jordan’s football team beat the UAE, silver medallists in the Asian Games four years ago, on Thursday night.

Thousands of tickets were on sale yesterday for the opening extravaganza in a 62,000-seat stadium.

Incheon officials said that barely 18 per cent of tickets have been sold for the Games, which run until October 4.

The city has since decided to report only ticket receipts, rather than numbers sold. A city spokeswoman, Yoo Ji-hyun, said on Friday that overall, the games had reached 55 per cent of its 35 billion won target.

Tens of thousands of tickets remain for the October 4 closing ceremony, which Yoo said had reached about 20 per cent of its financial target.

Yoo said that the number of seats sold was much lower than the sales targets, but insisted that interest is growing and there is a “visible rise in ticket sales”.

Yoo Jeong-bok, the city’s mayor, acknowledged the financial pain. He said North Korea’s decision to withdraw their female cheerleaders – widely admired in the south, despite the decades of frosty rivalry – was a blow.

“The North Korean cheerleaders would have contributed much to our show and also to improving relations between the two Koreas,” Yoo told the Yonhap national news agency.

“It’s true our financial burden has increased due to the Asian Games. However, I believe it will raise the brand value of our city” and attract foreign investors, he said.

The Games have cost nearly $2bn, and Incheon is now South Korea’s most-indebted city.

There are new tower blocks, a metro line, and sparkling sports facilities

Inhabitants say there is little sign of the 200,000 visitors that organisers counted on.

Asiad kicks off with ‘Gangnam Style’

The pop star Psy kicked off the Asian Games “Gangnam Style” in an energetic, K-Pop-fuelled ceremony on Friday night in which North Korean athletes received loud cheers from South Korean fans.

Spectators and athletes alike joined in Psy’s signature horse-riding dance as the singer belted out an electrifying rendition of his hit at Incheon’s 61,000-seat stadium.

Wearing a glittering black suit and backed by a team of dancers, the star brought the three-hour spectacle to a thumping finale, heralding the start of 15 days of competition with 9,500 athletes.

Park Geun-hye, South Korea’s president, opened the 17th edition of the Olympics-style event, after athletes from 45 countries, including 88 from the UAE, had filed into the stadium.

Actress Lee Young-ae, the star of hit Korean drama Dae Jang Geum, lit the Games’ ceremonial flame, helped by two children.

The ceremony’s most touching moment came when the crowd bellowed their approval for the team from North Korea, with which South Korea technically remains at war.

The North’s athletes and officials, in pristine white blazers and blue trousers, gave only the slightest of grins as they paraded.

There were also big cheers for Japan and China, allaying fears they could get a frosty reception because of tensions over Beijing’s long-standing support for Pyongyang and Tokyo’s colonial rule.

Organisers will hope the ceremony will inject some much-needed buzz into the Games.

Even the showcase opening, where top-price tickets cost $1,000, failed to draw a capacity crowd, with hundreds of seats still empty at the start of the ­spectacle.

The hosts will be desperate for a good early showing by their athletes to attract local fans and the pressure will be on Jung Jee-hae, who is favourite for the Games’ first gold, in the women’s 10-metre air pistol on Saturday.

Olympic Council encourages Saudis to promote female athletes

The Olympic Council of Asia president, Sheikh Ahmad Al Fahad, said the body is “encouraging” Saudi Arabia to put forward female athletes in the future after bringing 202 men and no women to the Asian Games in South Korea, which the group, Human Rights Watch, called a “backwards step”. The Saudis took two women to the London 2012 Olympics.

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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.

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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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