Dimitar Berbatov during training last Friday.
Dimitar Berbatov during training last Friday.
Dimitar Berbatov during training last Friday.
Dimitar Berbatov during training last Friday.

No looking back for Berbatov


  • English
  • Arabic

The Abu Dhabi consortium taking over Manchester City and apparently rewriting the principles of the football business are not due to touch down in the city to pore over their shiny new acquisition until Friday, but they are already larging it up North.

The happenings of the final day of this transfer deadline day, or even Abu Dhabi day as it should probably be remembered, can be wrapped into a dinky little package, but it was some rather big packages that saw all roads lead to Manchester from London and Madrid on Monday. Is it grim oop North? Not if you are Dimitar Berbatov or Robinho. A once industrialised hub of flat caps, whippets and textiles is now a staging post for indulgent millionaires, or billionaires depending on who you believe is funding the purchase of City.

As far as coming out parties are concerned, the Abu Dhabi United Group for Development and Investment running Manchester City arranged a regal bash. They snagged the Brazil winger Robinho for a British record £32.5million (Dh213`m) transfer fee from Real Madrid, and even the cake they got in the face from failing to disrupt Berbatov's £30m transfer to Manchester United from Tottenham probably tasted sweet.

Berbatov had been busy reading books on the history of United before his £30.75m move was finalised. "Joining United is a dream come true. I look forward to playing my part in helping this club win more honours," he said. "This is a key signing. Dimitar is one of the best and most exciting strikers in world football," commented his new manager Sir Alex Ferguson. Manchester seems to have transformed itself into the centre of world football after a couple of bedazzling days that would have rivalled any plot Coronation Street could have mustered.

In the football world, City now appear to browse in the same outlets as United, and are no longer comparable to Dev Alahan's corner shop. The man known as the Donald Trump of Abu Dhabi trumped Chelsea for Real Madrid's winger Robinho but discovered that the reputation of United can still break up the threat of hard finance. Dr Sulaiman al Fahim, the front man of the Abu Dhabi group, found that for every Robinho you manage to acquire, there is a Berbatov waiting to go elsewhere.

Manchester City will first face Berbatov in the Manchester derby. As there always is, there were other moves. Frazier Campbell joined Spurs on loan for the season as part of Berbatov's transfer. The London club also sealed the moves of Roman Pavlyuchenko from Spartak Moscow, and Vedran Corluka from City. Newcastle brought in Xisco from La Liga side Deportivo La Coruna. Everton spent a club record fee of £15m for Standard Liege midfielder Marouane Fellaini, while Liverpool completed an estimated £8m transfer of the winger Albert Riera from Espanyol.

But this was a day that will be recalled for Robinho and Berbatov's sojourn to Manchester. The story of one city, and its new industrial revolution. @Email:dkane@thenational.ae

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Another way to earn air miles

In addition to the Emirates and Etihad programmes, there is the Air Miles Middle East card, which offers members the ability to choose any airline, has no black-out dates and no restrictions on seat availability. Air Miles is linked up to HSBC credit cards and can also be earned through retail partners such as Spinneys, Sharaf DG and The Toy Store.

An Emirates Dubai-London round-trip ticket costs 180,000 miles on the Air Miles website. But customers earn these ‘miles’ at a much faster rate than airline miles. Adidas offers two air miles per Dh1 spent. Air Miles has partnerships with websites as well, so booking.com and agoda.com offer three miles per Dh1 spent.

“If you use your HSBC credit card when shopping at our partners, you are able to earn Air Miles twice which will mean you can get that flight reward faster and for less spend,” says Paul Lacey, the managing director for Europe, Middle East and India for Aimia, which owns and operates Air Miles Middle East.

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.”

What are NFTs?

Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.

You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”

However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.

This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”

This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.

One in nine do not have enough to eat

Created in 1961, the World Food Programme is pledged to fight hunger worldwide as well as providing emergency food assistance in a crisis.

One of the organisation’s goals is the Zero Hunger Pledge, adopted by the international community in 2015 as one of the 17 Sustainable Goals for Sustainable Development, to end world hunger by 2030.

The WFP, a branch of the United Nations, is funded by voluntary donations from governments, businesses and private donations.

Almost two thirds of its operations currently take place in conflict zones, where it is calculated that people are more than three times likely to suffer from malnutrition than in peaceful countries.

It is currently estimated that one in nine people globally do not have enough to eat.

On any one day, the WFP estimates that it has 5,000 lorries, 20 ships and 70 aircraft on the move.

Outside emergencies, the WFP provides school meals to up to 25 million children in 63 countries, while working with communities to improve nutrition. Where possible, it buys supplies from developing countries to cut down transport cost and boost local economies.

 

RESULT

Al Hilal 4 Persepolis 0
Khribin (31', 54', 89'), Al Shahrani 40'
Red card: Otayf (Al Hilal, 49')