73% of fake medicines routed through UAE


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ABU DHABI // Almost one in seven counterfeit items - including 73 per cent of fake medicines - seized at European borders last year was routed through the UAE, new figures show. A report by the European Commission Taxation and Customs Union revealed that the last port of call for 15 per cent of the 118 million articles seized in Europe was the UAE - more than any nation other than China.

The country was also the last port of call before arriving in Europe for almost three-quarters of counterfeit medical products. The number of fake medicines arriving via the UAE jumped from around 750,000 in 2008 to almost 5.5million in 2009. It was also the distribution point for a third of fake CDs and DVDs. Dubai Customs declined to comment on the latest report, but pointed out that last year it did not have the legal authority to inspect goods on ships that arrive in its port en route to another destination.

Federal Customs also declined to comment when asked about the report. David Boublil, a spokesman for the Taxation and Customs Union's Directorate General, said that it is impossible for customs officials to say with any certainty where in the world the goods were manufactured before arriving in the UAE. "We did not try to distinguish between countries of origin and countries of provenance this time," he said.

"It is very difficult to make the distinction because if the counterfeiters are ready to break one law, they may break another one and try to produce fake certificates." The previous report for 2008 also demonstrated that the UAE played a major role in the transportation of fake goods across the world. Most fake cigarettes (56 per cent), and 8 per cent of fake medicines, were transported from the Emirates in that year.

This contrasts to the most recent figures which revealed that 73 per cent of fake medicines came from the UAE and 16 per cent of fake tobacco products. The report noted, however, that "due to a more specific registration of product categories, it is difficult to make an exact comparison between 2009 and the years before. "One big shipment can make a significant difference," explained Mr Boublil. "That is often the main reason for variations [in numbers]."

Cigarettes account for 19 per cent of the overall amount, followed by other tobacco products such as cigars and cigarette papers (16 per cent), labels, tags and emblems (13 per cent) and medicines (10 per cent). The report stated: "As in previous years, more and more of the products detained by customs are for daily use, such as shampoos, toothpaste, toys and household appliances, and products potentially dangerous to health, such as food beverages and medicines."

The goods which are of most concern were those which posed a risk to health and safety such as medicines and consumables, Mr Boublil said. "In general, counterfeiting is very bad for innovation and very bad for bona fide business," he said. "In addition to that there is a risk to consumers. "Of course those which are risking health and safety should attract even more attention." UAE officials have been clamping down on fake goods in recent years. Dubai Customs seized a stash of seven million sexual stimulant and fertility tablets from a warehouse in the dry port in June.

The estimated value based on the average US$10 (Dh36.72) price for a Viagra pill was $70m (Dh257m). Ahmed Butti Ahmed, the general director of Dubai Customs, said at the time that the drugs came from an Arab country, but declined to name the country. Pfizer, the manufacturer of Viagra, said the haul was probably just the "tip of the iceberg". Counterfeit medicines were also under the spotlight in December when the Ministry of Health promised to increase the fight against them and forge better co-operation with other authorities. The ministry declined to comment on the latest report by the European Commission.

In its mission to halt illegal trading, the Commission has already created partnerships with countries including China and India. Mr Boublil said although there were no specific plans to deal directly with the UAE in a similar way, it was a possibility. "There are plans to extend co-operation with other countries, particularly with regards to the protection of intellectual property rights, and the UAE could be one of these countries."

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UAE currency: the story behind the money in your pockets
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Where to submit a sample

Volunteers of all ages can submit DNA samples at centres across Abu Dhabi, including: Abu Dhabi National Exhibition Centre (Adnec), Biogenix Labs in Masdar City, NMC Royal Hospital in Khalifa City, NMC Royal Medical Centre, Abu Dhabi, NMC Royal Women's Hospital, Bareen International Hospital, Al Towayya in Al Ain, NMC Specialty Hospital, Al Ain

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UAE currency: the story behind the money in your pockets

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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1 India 71 per cent

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3 Australia 69.2 per cent

4 England 64.1 per cent

5 Pakistan 43.3 per cent

6 West Indies 33.3 per cent

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8 Sri Lanka 16.7 per cent

9 Bangladesh 0

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What is hepatitis?

Hepatitis is an inflammation of the liver, which can lead to fibrosis (scarring), cirrhosis or liver cancer.

There are 5 main hepatitis viruses, referred to as types A, B, C, D and E.

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People infected with hepatitis C experience few or no symptoms, meaning they can live with the virus for years without being diagnosed. This delay in treatment can increase the risk of significant liver damage.

There are an estimated 170 million carriers of Hepatitis C around the world.

The virus causes approximately 399,000 fatalities each year worldwide, according to WHO.

 

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