The UAE made the worst possible start in their bid to persuade the International Rugby Board they deserve a place at December’s Dubai Rugby Sevens, after they lost both their matches in the pool stage of the Shanghai Sevens Saturday.
The newly formed UAE sevens side have been told they will have to prove they are worthy of playing in the opening tournament of the HSBC World Series in Dubai later this year.
The team was created after the Arabian Gulf was disbanded at the end of last year, but they did not automatically assume the Gulf’s place in their home competition.
Instead, the IRB will monitor how they fare in the HSBC Asian Sevens series, with this weekend’s opening leg in Shanghai to be followed by tournaments in Borneo and Thailand.
If the game’s ruling body decide the team from the Emirates are not competitive enough, the Dubai Sevens will be the only leg on the nine-tournament World Series not to have a home representative.
Against that backdrop, defeats against the Philippines and Korea Saturday, each of whom are below the UAE - who are officially the third-best side in Asia in the 15-man game - were especially disappointing.
The best the UAE can hope to finish in China, dependant on them winning both of their Bowl matches Sunday, is ninth.
“We have put in structures and tried to play the basics of sevens rugby but it takes time to learn and today was one of those days,” Tim Fletcher, the UAE captain, said.
The UAE could point to mitigating factors for their poor return, such as the dramatic turnover in players since the Gulf side was dissolved, a general lack of experience in the format, or even the poor weather conditions.
Arguably the most significant inhibiting issue, however, could be the ongoing confusion over the coaching position. The UAE Rugby Association said at the start of the summer they would welcome applications for a new sevens coach.
However, Shane Thornton, the Gulf sevens coach until last year, is still in charge of the side in China and is contracted until December, while the UAE RA have since indicated that a new man to oversee all rugby here, rather than sevens in specific, is the priority.
Thornton, a short-form specialist who still plays on the wing for Dubai Dragons and, intriguingly, will be available for selection for the UAE himself later this year, refused to suggest the confusion over his position had any effect on his side.
Instead he pointed to the rawness of his squad as a reason for the opening day defeats.
“We have a whole new side from last year, so it is a rebuilding job again,” the New Zealander said.
“It is typical of Dubai rugby, with people coming and going all the time and you never get a consistent side all the way through, but we are just trying to get players into the game.”
Several Gulf players are now ineligible for the UAE national team, such as the outstanding Abu Dhabi-born playmaker, Jonny Macdonald, who has since been picked by Scotland.
“There are no excuses, but sevens is a game you need to play and play and play,” Sean Hurley, the UAE’s tour manager, whose expertise as a player were sorely missed due to injury today, said.
“Guys are starting to learn what they need to do and how they need to play, so this weekend has become a learning experience now.”
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.”
