Canal is dredged to make room for display warships


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ABU DHABI // A canal alongside Khaleej al Arabi Street is being dredged so small warships can be sailed up it during a defence exhibition in February. Work to dredge the canal to a depth of six metres has begun at the waterway opposite the Abu Dhabi National Exhibition Centre (Adnec), where the four-day International Defense Exhibition (Idex) will be held starting on Feb 22.

The exhibition, which has been staged in the capital every second year since 1993, showcases some of the tanks, weapons and new defence technologies available to governments around the world. It is also expected to focus on emerging security threats, such as climate change, dwindling potable water resources, cyber-attacks and international organised crime. "Whatever affects the wider world, affects us," said Gen Obaid al Ketbi of the UAE's Armed Forces and the chairman of Idex.

"We will discuss the things that are of the most concern right now: terrorism, water and nuclear security." He spoke yesterday at a press conference. Security issues have been at the forefront of the Government's agenda over the past few weeks. At a conference in Manama, Robert Gates, the US defence secretary, urged the GCC to include Iraq, to limit Iran's influence in the region. The UAE is also negotiating with the US to purchase several missile defence systems.

Gen al Ketbi would not comment on the progress of the purchases. Warships, submarines, aerial drones and other defence technologies are to be displayed at Idex. Gen al Ketbi said he could not be specific. During Idex 2007, contracts worth Dh2 billion (US$544 million) were announced, including Dh1.4bn in purchases for the UAE Armed Forces. This year, that figure is expected to be higher. "Military plans have priority with governments," said Gen al Ketbi. "I don't expect the global financial crisis to have an effect."

As many as 40,000 delegates are expected to attend Idex. Although Abu Dhabi has only about 13,000 hotel rooms, Adnec said not all of the delegates will attend all four days. Also, many are likely to stay in Dubai or Al Ain. "Every year people ask this question, and every year they manage to find hotel rooms," said Paul Vincent, the marketing director for Adnec. jgerson@thenational.ae

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What sanctions would be reimposed?

Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:

  • An arms embargo
  • A ban on uranium enrichment and reprocessing
  • A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
  • A targeted global asset freeze and travel ban on Iranian individuals and entities
  • Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods

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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Victoria Azarenka (BLR) v Heather Watson (GBR)
Rafael Nadal (ESP x4) v Karen Khachanov (RUS x30)
Andy Murray (GBR x1) v Fabio Fognini (ITA x28)

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Steve Johnson (USA x26) v Marin Cilic (CRO x7)
Johanna Konta (GBR x6) v Maria Sakkari (GRE)
Naomi Osaka (JPN) v Venus Williams (USA x10)

Court 2 (2.30pm UAE)
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Jelena Ostapenko (LAT x13) v Camila Giorgi (ITA)
Jo-Wilfried Tsonga (FRA x12) v Sam Querrey (USA x24)

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Kei Nishikori (JPN x9) v Roberto Bautista Agut (ESP x18)
Carina Witthoeft (GER) v Elina Svitolina (UKR x4)

Court 12 (2.30pm UAE)
Dominika Cibulkova (SVK x8) v Ana Konjuh (CRO x27)
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2015 - Nico Rosberg (Mercedes)

2016 - Lewis Hamilton (Mercedes)

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