Emiratis now increasingly looking towards a future working in a trade



DUBAI // Traditional resistance by Emiratis to attending technical schools to learn a trade instead of a mainstream high school has fallen.

Abdullatif Al Shamsi, the managing director of the Institute of Applied Technology (IAT), has seen a steady increase in enrolment figures over the past five years.

"For next year's admission we have had 4,000 Emiratis competing for 1,850 placements," he said. "The 4,000 figure is of people who actually sat the admission test, so they are very serious. This means I will only be able to accommodate about 45 per cent of interested Emiratis."

Old beliefs surrounding vocational education options have shifted significantly, Mr Al Shamsi said.

"The concept of the vocational is continually evolving among Emiratis," he said. "More students and families are changing their perception about vocational education."

The Applied Technology High Schools operated by IAT have about 4,500 pupils enrolled at seven campuses across the UAE - four in Abu Dhabi and one each in Dubai, Ras Al Khaimah and Fujairah.

The Government is already pursuing ambitious projects in the nuclear, air and petrochemical industries, all of which will require Emiratis with both specialist knowledge and hands-on experience.

"We are no longer talking about primitive trades. These require sophisticated technology-based skills which need a different calibre of people," Mr Al Shamsi said.

"The new concept of vocational education necessitates a combination between the academics and hands-on experience. We have to merge between the two to succeed in preparing students for the new concept of vocational education."

Despite evidence of growing acceptance, Mr Al Shamsi said convincing Emiratis to take an education track that prepares them for specific careers remains an important focus for vocational schools.

"The secret to attracting more Emiratis into vocational training is to provide them with a cross-path education system so they can excel in their future career," he said.

"We need to give them the opportunity to climb the ladder in their vocational track and it is why it is important for academics to lay the foundation."

Attaining a certain level in core subjects such as English, maths and science is crucial to a technical school student's success, he said.

"We need to teach students sustainable skills. We do not know what type of jobs will be on offer in the future . . . We need to answer the question of how to prepare the 21st century citizen," Mr Al Shamsi said.

"Part of the answer is that we must provide them with research skills.

"We need to teach how to become critical thinkers and problem solvers and how to communicate. This is when vocational education becomes a value in itself."

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Sand storm

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Dust storm

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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.”

COMPANY PROFILE
Name: Airev
Started: September 2023
Founder: Muhammad Khalid
Based: Abu Dhabi
Sector: Generative AI
Initial investment: Undisclosed
Investment stage: Series A
Investors: Core42
Current number of staff: 47
 
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1,000 tonnes of waste collected daily:

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