Ahmed Barman, left, of Al Ain shadows Al Jazira's Omar Abdulrahman during the Arabian Gulf League football match at Mohamed bin Zayed Stadium in Abu Dhabi. All photos by Pawan Singh / The National
Ahmed Barman, left, of Al Ain shadows Al Jazira's Omar Abdulrahman during the Arabian Gulf League football match at Mohamed bin Zayed Stadium in Abu Dhabi. All photos by Pawan Singh / The National
The match was played in front of empty stands after the FA ordered all UAE matches to be played behind closed doors.
The match was played in front of empty stands after the FA ordered all UAE matches to be played behind closed doors.
Al Ain, in purple, in action against hosts Al Jazira.
Al Ain, in purple, in action against hosts Al Jazira.
Al Ain's Laba Kodjo.
Al Ain's Laba Kodjo.
Al Ain's Caio Canedo, right, shields the ball from Al Jazira's Omar Abdulrahman.
Al Ain's Caio Canedo, right, shields the ball from Al Jazira's Omar Abdulrahman.
Ahmed Barman of Al Ain, left, in action against Al Jazira's Omar Abdulrahman.
Ahmed Barman of Al Ain, left, in action against Al Jazira's Omar Abdulrahman.
Mohamed Abdulrahman, of Al Ain, passes the ball.
Mohamed Abdulrahman, of Al Ain, passes the ball.

Football

Coronavirus: UAE FA approve Arabian Gulf League clubs to impose 40 per cent pay cuts

The proposal was put forward at a virtual meeting on Sunday chaired by FA president Sheikh Rashid bin Humaid Al Nuaimi

John McAuley
John McAuley

April 13, 2020

  • English
  • Arabic

The Football Association has authorised clubs in the Arabian Gulf League to temporarily deduct up to 40 per cent of salaries from players and coaches.

The proposal, which allows monthly wages to be reduced provided they do not fall below Dh15,000, was put forward at a virtual meeting on Sunday chaired by Sheikh Rashid bin Humaid Al Nuaimi, the FA president.

Salaries in the First Division can also be reduced by the same amount, but on the provision those players and coaches’ wages do not fall under Dh10,000 per month. The leagues’ foreign players and coaches will be asked to commit to the proposal, in compliance with Fifa guidelines.

The recommendations, should they be ratified at another meeting on Monday with all of the respective clubs, would be backdated to when football in the country was suspended on March 15 to limit the spread of coronavirus and continue until competitions return.

Earlier on Sunday, the FA confirmed an extension to the postponement of all competition that falls under its auspices "until further notice". When implemented last month, it had initially been put in place for four weeks.

The FA will continue to “evaluate and review” the situation, with a decision regarding the resumption of competition taken only in consultation with the relevant authorities.

The Arabian Gulf League ceased play on March 15, one day after completing its 19th Round. The FA is assessing a number of options for a restart, including a return in June.

In addition to the salary reductions, the governing body authorised an extension to player contracts beyond June 30 that were to end at the conclusion of this season, and also a shift in transfer windows, in compliance with Fifa. It was determined that transfers to be completed this summer will be delayed until when next season does start.

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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