Pilots acquitted of forging permits


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DUBAI // Two pilots were acquitted of forgery charges for the second time yesterday in a case that began when they were arrested after flying over the Dubai police chief's house in Jumeirah.

A Hungarian man, LT, 43, the founder of Dubai's Micro Aviation Club, and a British engineer, JC, 52, were charged on October 3 with forging an official document and use of forged documents.

The two were initially charged in the Dubai Court of Misdemeanours in December last year with flying a single-engined aircraft without permits, five to 10 metres above beachgoers.

According to prosecution records, the men were arrested on February 18 last year, after a police officer patrolling in front of Dubai police chief Lt Gen Dahi Khalfan Tamim's house spotted the low-flying, single-engined aircraft and ordered them to land.

A 48-year-old British professor, JW, and LT were also charged with forging an Emirates Aviation Association flying permit.

The Dubai Court of Misdemeanours acquitted all three of the men of the charges, but fined JC Dh3,000 for flying without a permit. The fine was not contested.

Prosecutors then appealed the sentence in July and asked the Dubai Court of Misdemeanours to refer the case to a Criminal Court, on the grounds that the men forged an official flying permit.

Dr Ali al Jarman, JC's lawyer, told the court in previous hearings this year that the prosecutors had no grounds for a criminal case. He said there was no forgery because the permit, which was issued by LT to JC, was not stamped or signed, but was a standard-issue permit given by the Emirates Aviation Association (EAA), a government body that at the time regulated parachuters and paragliders.

Micro-aviation, or flying ultralights, was still not officially recognised, but fliers trained by the Micro Aviation Club were given permit cards. Although the permits had no legal standing, they were not forgeries.

For the permits to be official, the EAA would have had to have finalised its official registration.

An EAA representative testified in January that the association did not process permits for such aircraft, but was reviewing considerations to do so at the time of the incident. It now issues official permits for ultralights.

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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