FNC members get set for start of new session


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ABU DHABI // Federal National Council members started their closed committee meetings last week in preparation for the start of their third year.

The first seven-member committee to meet on Sunday was Interior and Defence, which discussed a bill on the security of sports activities and clubs.

Yaqob Al Naqbi (Sharjah), the committee chairman, said the 25-article bill aimed to support sports and youth and organise security measures at events.

The law outlines prison terms of between one and three months and fines of between Dh5,000 and Dh30,000 for anyone who enters a sports ground or attends a sporting event with the intention to disrupt, and all those who take in prohibited substances to events or carry a weapon.

Profane or racist language, including on banners, would also land fans in prison, with a fine of between Dh10,000 and Dh30,000.

In other meetings, the Legislative and Legal Affairs Committee discussed the establishment of a new Federal Court of First Instance in Al Dhaid, Sharjah.

Ahmed Al Zaabi (Sharjah), the committee chairman, said the court was important because the population in that area was increasing, as was the number of court cases.

The distance between Al Dhaid and Sharjah courts, he said, was also far.

After a FNC member called for a dispute resolution panel in Al Dhaid this year, it was set up by the Ministry of Justice.

The temporary committee set up to discuss policies of the Ministry of FNC Affairs also met last week in the presence of several ministry officials.

The committee was set up after scrutiny into the role of the ministry as it was not playing a proactive role in spreading parliamentary awareness.

Following meetings, the committee will draw up a report, which will be discussed publicly in sessions.

A number of international visits have also been made, including one to Egypt, where some FNC members took part in parliamentary meetings.

While no date has been set for the opening session of the FNC in the capital, it will probably fall on either October 22 or 29.

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.

“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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