Sheikh Mohammed tours Dubai Airshow with Sheikh Maktoum and Sheikh Hamdan

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, toured the Dubai Airshow on Monday.

He was accompanied by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, and Sheikh Maktoum bin Mohammed, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance.

Also receiving delegations at the event was Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi.

“The Dubai Airshow has established itself over more than three decades as the foremost event in the global aviation industry,” said Sheikh Mohammed, according to Dubai Media Office.

“Multibillion-dollar deals inked during the exhibition have strengthened the future of the global aviation sector and enabled it to navigate challenges.

“Dubai is the place where challenges turn into opportunities and adversity opens new pathways to success.”

Thousands attended the first day of the air show at Al Maktoum International Airport on Monday, in the largest iteration of the event to date.

“The organisation of the 18th edition of the air show reflects Dubai’s emergence as a pre-eminent international aviation hub, serving as a platform uniting key stakeholders in the sector to present cutting-edge technologies that will influence the future of air travel,” said Sheikh Hamdan, according to Dubai Media Office.

“The showcased technologies and innovations at Dubai Airshow 2023 underscore the remarkable advancements in the aviation sector, with a central emphasis this year on fostering a more sustainable future for aviation.”

A number of high-profile deals were struck on the first day of the event.

Emirates, the world's biggest long-haul airline, placed an order for 95 additional Boeing 777X jets and Boeing 787 Dreamliners valued at $52 billion at list prices, for the replacement and growth of its fleet.

Emirates' sister airline flydubai kicked off the air show with an order for 30 Boeing 787-9 Dreamliners valued at $11 billion, marking its first order for wide-body jets.

Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, and Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi, attend the Dubai Airshow on Monday. Photo: Dubai Media Office

Flydubai is currently an all-Boeing operator of 737 narrow-bodies serving shorter-haul routes, with the new order signifying a diversification of its fleet.

“The Dubai Airshow is one of the most important events hosted by the UAE,” said Sheikh Khaled, according to Abu Dhabi Media Office.

“The UAE is keen to continue making a positive impact on the international stage across various sectors, including aviation.

“The country aims to strengthen its position as a platform enabling the world to unlock new stages of growth by leveraging its expertise and resources to play an influential role in achieving this goal.”

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.”

Test squad: Azhar Ali (captain), Abid Ali, Asad Shafiq, Babar Azam, Haris Sohail, Imam-ul-Haq, Imran Khan, Iftikhar Ahmed, Kashif Bhatti, Mohammad Abbas, Mohammad Rizwan(wicketkeeper), Musa Khan, Naseem Shah, Shaheen Afridi, Shan Masood, Yasir Shah

Twenty20 squad: Babar Azam (captain), Asif Ali, Fakhar Zaman, Haris Sohail, Iftikhar Ahmed, Imad Wasim, Imam-ul-Haq, Khushdil Shah, Mohammad Amir, Mohammad Hasnain, Mohammad Irfan, Mohammad Rizwan (wicketkeeper), Musa Khan, Shadab Khan, Usman Qadir, Wahab Riaz

The specs

Engine: 4.0-litre V8 twin-turbocharged and three electric motors

Power: Combined output 920hp

Torque: 730Nm at 4,000-7,000rpm

Transmission: 8-speed dual-clutch automatic

Fuel consumption: 11.2L/100km

On sale: Now, deliveries expected later in 2025

Price: expected to start at Dh1,432,000

Sheikh Mohammed tours Dubai Airshow with Sheikh Maktoum and Sheikh Hamdan

Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi, also meets delegations at opening day of aviation event

The specs