FNC winners open doors to return favour



RAS AL KHAIMAH // For three weeks, tribal and community leaders hosted FNC candidates in their majlises to hear their campaigns.

Now the winners are returning the hospitality.

In the past week, thousands of people have travelled across the country to discuss the issues closest to their hearts with their newly elected representatives.

Mohammed Al Shehhi, 51, a government employee, made the rounds of the three winning candidates' majlises in RAK last week, including that of Saeed Al Khatri.

"We come to say congratulations and to show that support is from all Ras Al Khaimah, not only from Al Khatri [tribe], and to talk about the important things like health and education, and our problems in village areas," said Mr Al Shehhi.

"The first time we come it is for a greeting, the second time it is business."

While only a fraction of the Emirati population was eligible to vote - 129,274 - entire villages were involved in majlis meetings. These visits allowed politics to move beyond tribal loyalties.

Votes were often made on behalf of all family members, rather than merely to represent the voter's own choice.

At the majlis of Mr Al Khatri, one man stepped forward and broke into the political discussion to recite poetry to honour the host. This is customary.

But the discussion was much more than fine words. Within an hour, Mr Al Khatri met delegations from four villages, discussed the retirement age of teachers, the shortage of late-night hospital staff and employment options for graduates.

"All of us are human and all must serve the UAE," he said.

"When meeting the people before the election, I went to the other majlises and before we met they thought, 'I won't give him my vote, he's not my tribe'.

"But I am not Khatri or Hebsi or Shehhi - I am from the tribe of the UAE."

Mr Al Khatri's guests have included 200 students from four schools and dozens of teachers, who paraded on buses through his village, Hamraniya.

"I must meet with the people to know what the issues of the problems are, not stay at home and search on the internet," he told a group of men from RAK and Abu Dhabi, before the conversation turned to the disparity in salaries between the two emirates.

With perfect poise, Mr Al Khatri, 59, a retired army officer with a master's degree in military science, spoke little and listened well.

In an adjacent majlis, women met his wife, Sheikha, 48, a poet who was married as a teenager and has 10 children aged between 12 and 35.

"The woman who cannot talk to my husband can come and talk and I can speak to him on her behalf," she said.

"Some women have problems with their husbands, they want to get a divorce but they do not have money; some women are homeless and living with their in-laws; some women work but the husband does not, so they have problems with the bank. As a woman I can understand these things."

Once elected, members often turn to family to find solutions.

Faisal Abdullah Al Teniji, 36, learnt this from his grandfather, who was appointed to the FNC in 1972.

When Mr Al Teniji was elected for RAK he rushed home to open his grandfather's majlis.

"Many people have put their trust in me and it's a big responsibility," he said. "It is our time to develop our achievements and to renew."

In the week before the elections Mr Teniji saw between 80 and 100 visitors a night. After elections, this shot up to between 200 and 300 daily visits.

Many of the faces he saw on Saturday night were the same men who would visit his grandfather. "It's not something new to us," said the family elder, Abdulla Abdulrahman Jumaa, 73. "Even in the old times the sheikhs were always getting advice. This [voting] is just the modern way of doing that.

"We would sit together first and when we reached one decision, we would go to the sheikh."

Mr Al Teniji was one of two candidates from the small north-coast town of Al Rams to win a seat.

The north coast had some of the strongest voter participation in the emirate and the three winning candidates, who beat 56 other competitors, made a point of visiting remote southern areas largely forgotten by others.

Mr Al Teniji hopes political participation will spread through the majlis.

"It was an occasion, but overall the numbers were very low because it was Saturday and the next day was a working day and the rest of them were on their way to work in Abu Dhabi," he said. "We need at least three centres."

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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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