DUBAI // Half of all counterfeit passports seized at Dubai International Airport are being used by people in transit who wish to emigrate to European countries, a senior official revealed yesterday.
Brigadier Obaid bin Suroor, the deputy director of Dubai Naturalisation and Residency Department (DNRD), made the comment on the sidelines of the Gulf Information Technology Exhibition (Gitex).
In the first half of this year, 686 forged documents were discovered at Dubai International Airport, according to DNRD statistics.
"It is important for us to stop this practice, as it damaging for us," he said. "If they are caught in other countries and transferred back to us, this is bad for our security."
Brigadier bin Suroor added that his department was cooperating with the concerned countries to limit this problem.
The majority of these cases originate in Asian and African countries, according to Brigadier bin Suroor.
Those who are arrested at Dubai International Airport with forged passports are returned back to their countries of origin.
In a recent step by the Ministry of Interior, new software is used to capture images of people entering the country at the passport control counter, said Brigadier bin Suroor.
"We started implementing the rule two months ago. The aim of it is to enhance the security procedures at the border," said Brigadier bin Suroor.
Photos of people are taken and stored in a database, which makes it easier for immigration officers to cross-reference records at any other time.
"This new procedure is considered a key tool in discovering forged passports and in cross-checking information," he said.
The number of seized fake passports has increased in the last year - 100 more cases were reported in the first half of this year compared with the same period last year, according to DNRD statistics.
The increase is attributed to the effectiveness of the DNRD staff in fighting the trend of passport forgeries. "Because Dubai is an international hub, we are always going to have large exposure to forged passports. But we are continuously developing our procedures and skills to maximise our efforts in cracking down on the activity and, at the same time, speeding up the entry of travellers without compromising on a high level of security scrutiny," Brigadier bin Suroor said.
The DNRD has also set up a specialised centre to train and develop the skills of employees who deal with passports, enabling them to better detect forgeries.
With an Arabic name that can be translated as the Expertise Centre for Identity and Document Fraud (or ECID), the centre will train employees in a new set of technologies.
"The increase [of forgery cases] is due to the increased effectiveness of our staff," Brigadier bin Suroor said.
"And the number is set to increase again, as we are developing the skills of employees through our newly established training centre."
The centre offers three levels of training. The first level is aimed at the passport control counter employees. The second level features more advanced training for the supervisors of these counters, while the third level will target employees of the laboratories used to analyse suspect passports.
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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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