Workers have lunch during their mid-shift break at Saadiyat Accommodation Village in Abu Dhabi. Christopher Pike / The National
Workers have lunch during their mid-shift break at Saadiyat Accommodation Village in Abu Dhabi. Christopher Pike / The National

EU delegation visits Saadiyat construction workers’ accommodation



ABU DHABI // A delegation from the European Union on Tuesday toured Saadiyat Accommodation Village with representatives from the Tourism Development and Investment Company (TDIC).

The “village” houses construction workers employed on TDIC projects, including the museums in Saadiyat cultural district.

The representatives from the EU were in Abu Dhabi for the fourth meeting of the UAE-EU Human Rights Working Group. The TDIC said the EU delegates expressed positive feedback about the quality of life and facilities available at the accommodation village.

The company said that the delegation was able to learn more about the daily life of workers at the accommodation village as well as the various recreational activities they have access to, which include regularly scheduled entertainment events, sporting tournaments and movie nights.

Ali Yousef Al Hammadi, the chief executive of TDIC, said: “We are proud of all that we have achieved to date in regards to the welfare of our workers on Saadiyat.

“This visit was an opportunity for the distinguished delegation to see first hand the guidelines TDIC has put into place to ensure the workers’ well-being, and learn more about the facilities and services available to them.

“TDIC takes the welfare of our workers seriously, and is seeking to continuously enhance the current guidelines according to standards set by international best practices in the industry.”

The delegation also visited facilities for residents, including gyms, indoor and outdoor sporting areas, free videoconferencing facilities to call their families, multilingual libraries, access to medical care on site and a foreign-exchange facility to send funds back home.

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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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Max touring range: 620km / 590km
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10. Felipe Massa (Williams) 22


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