Abu Dhabi unveils $500 million scholarship programme for 6,000 Emiratis

Abu Dhabi has unveiled one of its largest university scholarship programmes to date, offering 6,000 Emiratis the chance to study in the US and Canada.

The total funding for the project amounts to Dh1.9 billion ($500 million) and will pay for students to attend university until 2028. It is aimed at those who have not previously benefited from overseas funding from the government.

The Khotwa (RizeUp) programme was created by Sheikh Khaled bin Mohamed, member of Abu Dhabi Executive Council and chairman of Abu Dhabi Executive Office.

“This landmark programme is a strategic investment by the Abu Dhabi government to continue nurturing future-ready Emirati bachelor’s degree holders,” said Sara Musallam, Minister of State for Early Education and chairwoman of the Abu Dhabi Department of Education and Knowledge (Adek).

“Khotwa will empower students who have not benefited from our previous scholarships to study at international colleges and universities and graduate as highly competent, effective and productive citizens capable of enriching our national employment pool and playing an active role in driving forward our knowledge-based economy.”

The department aims to enrol 100 students in the first group this year, with numbers set to increase annually to reach a total of 6,000 scholarship beneficiaries by 2028.

Who qualifies for an overseas scholarship?

Pupils at public, private and charter schools across Abu Dhabi with a minimum GPA of 65 per cent in their Grade 12 finals are eligible for the RizeUp programme, providing they score a minimum of 3.0 on the IELTS test.

The same criteria apply to National Service Graduates who do not hold a bachelor’s degree.

Priority will be given to candidates whose families are receiving social support, Abu Dhabi Government Media Office said in a statement.

This will enable a greater number of Emirati students who have not previously received scholarships to study abroad.

Accommodation with families abroad

Candidates joining Khotwa (RizeUp) must commit to a homestay programme during the two-year community college period, wherein students will reside with “local families carefully selected by Adek and reputable homestay organisations across North America”.

Officials did not say which subjects are preferred, but emphasised the importance of “new specialities to improve graduates’ employability, address priority industry needs, and supplement the current and future needs of the UAE economy”.

Shortlisted candidates must attend a five-day boot camp at Adek headquarters in October to assess their readiness for overseas study.

“The boot camp will follow a programme of behavioural interviews and self-assessments, group case studies, role play and situational simulation, and soft skills training,” said Dr Bashaer Almatrooshi, acting executive director of Adek.

“It will be a developmental experience for successful applicants and those who may not qualify this time around.

“Those selected must meet key criteria including a willingness and ability to learn in new settings.”

Successful applicants will leave the UAE for their assigned community college and homestay programme in January 2023.

Officials said that, in addition to having tuition fees and living costs throughout their homestay programme covered, RizeUp enrollees will also receive living allowances and continuous one-on-one advisory support from academic counsellors.

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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.”