ABU DHABI // Young people who try to dodge compulsory military service face a jail sentence, but there is a raft of benefits on offer to those who sign up.
They will have priority in job placements and promotions and for marriage and land loans, and the Armed Forces will fund their continued education.
Emirati men aged 18 to 30 will be banned from travelling outside the country or enrolling at university here or abroad without a military card or a legal document showing their military status.
And service to the country need not be in the Armed Forces: it can be completed with the Ministry of Defence, the Ministry of Interior or State Security, according to the 44-article draft law being studied by a Federal National Council committee.
The law is being fast-tracked through the legislative process and is expected to be implemented by the end of the year.
All Emirati men between the ages of 18 and 30, or those who have completed secondary school, will be required to sign up for military service.
They must have a record of good conduct and be medically fit to serve. Participation in political or banned organisations makes them ineligible.
Service terms will be nine months for those who have completed secondary school and two years for those who have not. For women, service is optional and lasts nine months.
Men who have completed their military service will become part of the reserve forces until the age of 58, or 60 for officers.
Reserves will be called up for training, national emergencies and times of war or military threat.
All workplaces, whether government or private, will be required to allow Emirati employees time to complete their service. The employee may be replaced temporarily, but must be given the same job upon return.
Salaries will continue to be paid, with those in the private sector receiving half from their companies and half from the Armed Forces. Those in the federal and government sector will receive full salaries from their agencies.
When the law is passed, all UAE nationals will be required to register with the military. Bylaws will be passed by Sheikh Mohammed bin Zayed, Deputy Supreme Commander of the Armed Forces.
Anyone who does not present himself for service before the age of 30, or who tries to avoid it, faces one month to one year in prison, and/or a fine of Dh10,000 to Dh50,000. In both cases military service is required before the sentence is imposed.
Reservists who do not respond to call-ups during threats or war face up to 10 years in prison. Ignoring reserve training can also result in a prison term.
There are exemptions for only children, and temporary exemption for a son who is the sole breadwinner for a parent, brothers and sisters or an unmarried sister.
National Service may be postponed in times of peace for students who are under 29, those who finish secondary school with a grade higher than 90 per cent, or those who have not yet finished secondary school. Only one postponement is permitted, and those who use it must still complete military service later, even if they are over 30.
The Armed Forces, the Ministry of Defence, the Ministry of Interior and State Security will form a committee to oversee training on weapons and military and security operations, overseen by the National Service and Reserves Authority.
When the FNC committee finishes amending the draft law it will be passed to the full council for debate, and thereafter to the President, Sheikh Khalifa, for final approval.
osalem@thenational.ae
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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.
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“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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