GCC justice officials approve new laws



ABU DHABI // The unrest in Bahrain is "officially over" thanks to the help of fellow GCC countries, a top official from that country told a meeting of GCC justice officials at a discussion of new mutual legislation and procedures yesterday.

Judge Khalid Ajaji, the head of the Bahraini delegation, said his country was anticipating an investigative committee's report on the crisis tomorrow. He said its findings were still a mystery, as the committee was completely independent.

"Our meeting is being held under extremely rapid and complicated international and regional developments which influence our justice and legal system," the UAE Minister of Justice, Dr Hadef bin Jua'an Al Dhaheri, said in his opening speech. "This requires us to re-look into many aspects of it."

The focus should be on making sure laws catch up to the economic and technological landscape, he said.

"We need to realise as ministers of justice that we need to speed up amending our laws in order to keep up with economic events and crises," he said.

Among the measures to be approved is a prisoner-exchange agreement among GCC countries and other nations. Proposed by Kuwait at a previous meeting, it means that, for instance, if Kuwait wanted to trade a prisoner for one of their own citizens being held in India, but does not have any Indian prisoners, they could use an Indian from Qatar.

Other issues included a guidance law for children's rights across GCC, a guide for lawyers' jobs and a project to have a unified judicial authority law.

Two laws proposed by the UAE have already been approved: a unified law against cyber crimes and a law for family courts. The minister could not provide any more details on those two laws and what they would add to current procedures in those areas.

Final approval and recommendations will be announced today.

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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.”