Aid groups aim to better co-ordinate their efforts


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DUBAI // The organisers of a meeting of about 50 local and international humanitarian agencies yesterday are hoping to hold the event regularly to help foster stronger ties and better co-ordination to disaster response between groups with a presence in the Emirates.

International Humanitarian City (IHC) and UNHCR, the UN refugee agency, brought together the representatives yesterday for the networking meeting in Dubai that they hope they can continue to hold on a quarterly basis.

Brigitte Khair Mountain, the head of UNHCR's external relations hub for the GCC in Abu Dhabi, hopes it will lead to more co-operation between the various aid groups operating from the UAE, from UN agencies to local organisations and NGOs.

"At the end of the day more concerted efforts [on humanitarian issues] have a greater impact," she said. "What we also wanted was to let our counterparts know that we, as UNHCR and the UN, are here not just to fund-raise and tell people to give us money and that we will do the projects. We have to partner as well with local organisations and this hasn't necessarily been happening a lot so far."

Organisers also hope such meetings will help prevent duplication of efforts when a humanitarian disaster strikes. Likewise, greater co-ordination between the organisations could pinpoint gaps that need to be filled. "There are organisations with the same line of work, so we need to bring everyone together," said Makiya al Hajiri, the head of IHC. "If we share the same vision, why don't we all get together and partner? When a crisis happens you need the expertise of the UN and the UN needs charities and NGOs to link them with the local communities in which they work - they both need each other."

Dr Elissar Sarrouh, the UN resident co-ordinator and the UN Development Programme's resident representative to the UAE, yesterday told people from organisations including the UAE Red Crescent Authority, Medecins Sans Frontieres, Grameen-Jameel and Life for Relief and Development, that co-ordinated responses to humanitarian disasters were critical.

"Establishing bridges between the UN, non-profit organisations and the private sector can be done," she said. "I hope this networking meeting will encourage humanitarian actors to work together."

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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.”

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

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