Supervisor acquitted of extortion attempt


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DUBAI // A former Halliburton employee accused of trying to extort Dh11,000 (US$3,000) from a contractor was acquitted yesterday in the Dubai Criminal Court of First Instance. The contractor, an environmental technology company, claimed the man threatened to nullify its multimillion-dollar deal with Halliburton unless he was paid the money.

AM, a 51-year-old Indian who worked at Halliburton for 27 years, said he was dismissed maliciously. The extortion charges were filed only after he sued the company for unfair dismissal, he said. As a logistical services supervisor at Halliburton, AM was in charge of overseeing contracts for the company. According to prosecution records, Halliburton was negotiating a contract through AM to have oil waste cleared from one of its projects.

On November 11, according to the sales director of the environmental company, AM asked the company to pay him Dh100 on every ton of oil waste that would be cleared. The sales director contacted him again and recorded the conversation, then contacted the legal department of Halliburton Worldwide in Dubai. Halliburton's former head of legal affairs, GJ, told the court the company investigated and AM was dismissed without a criminal complaint being lodged against him. "After we received instructions from our head office in the US, we told him if he left quietly we would not file any criminal action," GJ said.

When the court asked GJ why the company had waited so long to file the criminal complaint, he acknowledged it was filed as a counter-claim after AM sued the company for unfair dismissal. amustafa@thenational.ae

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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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SMEs in the UAE are defined by the number of employees, annual turnover and sector. For example, a “small company” in the services industry has six to 50 employees with a turnover of more than Dh2 million up to Dh20m, while in the manufacturing industry the requirements are 10 to 100 employees with a turnover of more than Dh3m up to Dh50m, according to Dubai SME, an agency of the Department of Economic Development.

A “medium-sized company” can either have staff of 51 to 200 employees or 101 to 250 employees, and a turnover less than or equal to Dh200m or Dh250m, again depending on whether the business is in the trading, manufacturing or services sectors. 

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1.

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2.

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UAE

4.

Japan

5

Norway

6.

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Singapore

8.

Australia

9.

Saudi Arabia

10.

South Korea