An Indian worker at an unfinished construction site next to the lawn bowling venue outside Jawaharlal Nehru Stadium, the main venue for the Commonwealth Games. Kevin Frayer/ AP Photo
An Indian worker at an unfinished construction site next to the lawn bowling venue outside Jawaharlal Nehru Stadium, the main venue for the Commonwealth Games. Kevin Frayer/ AP Photo

'Seven days to save face'



Driving around Delhi last week, as the rains poured on the Commonwealth Games party, it was difficult to believe this drenched city, which hardly looked in the mood to welcome visitors, was getting dressed for a big occasion. There were few billboards advertising the event and nothing seemed to be ready yet. Worse, there was a clear lack of enthusiasm generally associated with such events.

Negotiating the jammed, waterlogged streets, the taxi driver said he wished his country had never set out to stage the Games. "What are we getting from these Games?" Rajbir asked. "They have closed some roads making life difficult for us. There are few tourists coming. So much money has been spent and so much of it pocketed, and all that the country has got is shame." As the 2008 Olympic Games in Beijing were the "coming out party" for China, the Commonwealth Games had been expected to showcase "India Shining" on the global stage.

But after visiting Delhi last week, the sense of collective disillusionment sweeping through India is palpable. Every new day sees more embarrassment heaped on a nation that was hoping to join countries such as China, South Africa and Greece who have been able to successfully bring showcase sporting events to the world. Rajbir, the driver, navigated around some of the Games venues, which still resembled constructions sites with few workers in sight. The clean-up operations had yet to start.

An elevated road leading to the main arena for the Games, the Jawaharlal Nehru Stadium, seemed ready for launch, but roads in the rest of the city were still full of spine-jarring potholes, some big enough to belong to the manholes category. The taxi got stuck in one such ditch, an open gutter, and, with pants pulled up to the thighs, we valiantly tried to push it out without much success. After an hour of getting soaked in the rains, a tractor finally helped us out - for an exorbitant price, of course.

"The funny thing is they have cleared jhuggis (slums) from around the city," Rajbir said, "but they have forgotten to clean the rooms at the Games Village." Sarcasm about the shambolic build-up to the event, which has been dubbed the "Shame Games" by the Indian media, is rife. "A collapse a day keeps the athletes away," said an SMS from Shams Raza, a production executive with an Indian news channel, referring to a footbridge that collapsed outside the main stadium last Tuesday.

Later, as we met at the airport - the one impressive addition the Games have given Delhi - Raza showed us photographs of the filthy rooms from the Games Village. On the television sets at the new terminal, footage of the collapsed footbridge and an Australian journalist entering the main arena unchecked with a suitcase full of detonators dominated discussions. "We have had seven years to put on a show," Raza said. "Now we have seven days to save face."

With salvage operations having started on a "war footing" since, India's aspirations have been reduced to trying to protect the country's image. But it could be a tad too late even for that. arizvi@thenational.ae

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RESULTS

Bantamweight:
Zia Mashwani (PAK) bt Chris Corton (PHI)

Super lightweight:
Flavio Serafin (BRA) bt Mohammad Al Khatib (JOR)

Super lightweight:
Dwight Brooks (USA) bt Alex Nacfur (BRA)

Bantamweight:
Tariq Ismail (CAN) bt Jalal Al Daaja (JOR)

Featherweight:
Abdullatip Magomedov (RUS) bt Sulaiman Al Modhyan (KUW)

Middleweight:
Mohammad Fakhreddine (LEB) bt Christofer Silva (BRA)

Middleweight:
Rustam Chsiev (RUS) bt Tarek Suleiman (SYR)

Welterweight:
Khamzat Chimaev (SWE) bt Mzwandile Hlongwa (RSA)

Lightweight:
Alex Martinez (CAN) bt Anas Siraj Mounir (MAR)

Welterweight:
Jarrah Al Selawi (JOR) bt Abdoul Abdouraguimov (FRA)

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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.

“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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Starring: Jamie Bell, Danielle McDonald, Bill Camp, Vera Farmiga

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