Fugitive Pakistani oil chief set to be deported from UAE



ABU DHABI // A former oil and gas chief wanted in Pakistan for embezzling US$850 million (Dh3.12 billion) is to be deported once UAE authorities process documents handed over by Islamabad, the Pakistani Embassy said.

Tauquir Sadiq, who fled Pakistan a year ago, was arrested last week by Abu Dhabi Police acting on an Interpol alert.

He is accused of taking kickbacks and commissions when he was the head of Pakistan’s Oil and Gas Regulatory Authority between 2009 and 2011.

“We believe he will be deported as soon as possible when the documentation and legal formalities are completed,” said Jamil Ahmed Khan, Pakistan’s ambassador to the UAE.

A three-member team from the National Accountability Bureau (Nab), Pakistan’s top anti-corruption department, visited Abu Dhabi last week to submit the required documentation.

An arrest warrant by the supreme court in Islamabad was presented to UAE authorities and Mr Sadiq’s passport was cancelled by the Pakistan government as part of the deportation requirements.

“The UAE government has been very cooperative and his deportation depends on the quick processing of documentation,” Mr Khan said.

The Nab team will return to the UAE to escort Mr Sadiq to Pakistan.

Although the two countries have an extradition treaty in place, Pakistani authorities believe the deportation process will be quicker.

The case has also led to court action against Pakistan’s prime minister, Raja Pervez Ashraf, the interior minister, Rehman Malik, and another senior member of the ruling Pakistan People’s Party over Mr Sadiq’s appointment to the top oil and gas position in 2009.

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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.”