Decisions to be made on more representation



In a landmark announcement in 2005, the Government declared its intention to strengthen the representative nature of government, with the objective of wider political participation by the citizenry. A year later, moving closer to that promise, half of the 40 members of the Federal National Council (FNC) were elected, for the first time in the country's history, by a small number of super-electors. Ever since, the FNC's role and visibility have grown as it fulfilled its mandate to question ministers and discuss the national budget. That mandate ends in February 2011, with new elections expected before. But first, a new electoral law needs to be passed, and the Government has not yet disclosed whether the number of eligible voters will be expanded for the next elections.

This is a good moment for FNC members to take stock of their performance over the past four years and suggest reforms. Notably, a senior member, Ali Jasem, is calling for lowering the voting age from 21 to 18. Similar thinking is coming from the Government: on Sunday, a senior official from the Ministry that oversees the FNC urged young Emiratis at Zayed University to take a greater interest and participate more in national politics.

Such outreach is certainly welcome. The nation's economic and political development requires the contribution of its citizens in the major decisions that impact their lives and choices. But encouraging a culture of political participation will require a sustained commitment by everyone, from the Government to the FNC to Emirati citizens. New ideas about the FNC's mandate are needed to sustain the momentum initiated by the Government five years ago.

Just as important, a more representative system depends on the FNC's communication with the public, and growing awareness about the assembly's role in society. This fact is not lost on the FNC. Recently, one member, Dr Fatima al Mazroui, did not shy away from telling the chamber an unpleasant truth: "A study conducted by the House showed that as many as 89 per cent of Emiratis do not know the exact powers of the legislature or even the number of its members."

Perhaps a more empowered FNC would garner more attention, but it is also true that a greater sense of citizenship is necessary for the good of the nation. Better communication and interaction with municipalities and emirate-level agencies is also important to address Emiratis' local concerns. Participatory decision-making is not new to the UAE, as the tradition of the open majlis testifies. The question is how to institutionalise these relationships between the rulers and citizens. The UAE has a success story to tell, but what is equally important is a narrative of how that success has been built together.

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.”

Moon Music

Artist: Coldplay

Label: Parlophone/Atlantic

Number of tracks: 10

Rating: 3/5

Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

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UAE currency: the story behind the money in your pockets
What it means to be a conservationist

Who is Enric Sala?

Enric Sala is an expert on marine conservation and is currently the National Geographic Society's Explorer-in-Residence. His love of the sea started with his childhood in Spain, inspired by the example of the legendary diver Jacques Cousteau. He has been a university professor of Oceanography in the US, as well as working at the Spanish National Council for Scientific Research and is a member of the World Economic Forum’s Global Future Council on Biodiversity and the Bio-Economy. He has dedicated his life to protecting life in the oceans. Enric describes himself as a flexitarian who only eats meat occasionally.

What is biodiversity?

According to the United Nations Environment Programme, all life on earth – including in its forests and oceans – forms a “rich tapestry of interconnecting and interdependent forces”. Biodiversity on earth today is the product of four billion years of evolution and consists of many millions of distinct biological species. The term ‘biodiversity’ is relatively new, popularised since the 1980s and coinciding with an understanding of the growing threats to the natural world including habitat loss, pollution and climate change. The loss of biodiversity itself is dangerous because it contributes to clean, consistent water flows, food security, protection from floods and storms and a stable climate. The natural world can be an ally in combating global climate change but to do so it must be protected. Nations are working to achieve this, including setting targets to be reached by 2020 for the protection of the natural state of 17 per cent of the land and 10 per cent of the oceans. However, these are well short of what is needed, according to experts, with half the land needed to be in a natural state to help avert disaster.