Obaid Al Tayer, Minister of State for Financial Affairs, said ministries needing more money could negotiate with the Cabinet. Mona Al Marzooqi / The National
Obaid Al Tayer, Minister of State for Financial Affairs, said ministries needing more money could negotiate with the Cabinet. Mona Al Marzooqi / The National
Obaid Al Tayer, Minister of State for Financial Affairs, said ministries needing more money could negotiate with the Cabinet. Mona Al Marzooqi / The National
Obaid Al Tayer, Minister of State for Financial Affairs, said ministries needing more money could negotiate with the Cabinet. Mona Al Marzooqi / The National

FNC passes federal budget for 2014


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ABU DHABI // The federal budget for next year has been passed by the Federal National Council - despite concerns about shortfalls in some areas.
Members approved the Dh46 billion spending plan but said it did not meet the needs of all ministries.
The criticisms came during a four-hour debate on Tuesday with Obaid Al Tayer, Minister of State for Financial Affairs, after the FNC's financial committee studied the figures.
Members said ministries including health, education, the environment and social affairs would not have enough funding for programmes set out by the FNC and approved by the Cabinet.
They also said the budget focused more on ministerial salaries than programmes and services for the people.
The FNC Speaker, Mohammed Al Murr (Dubai), said he was sure the budget calculations were done well but that social needs had not been taken into consideration.
After the Government agreed to the FNC's social developmental recommendations, it should have set a budget for this, he said.
Mr Al Tayer said the budget was only set after talks were held with each ministry, which set out their needs for the coming year.
All shortfalls in pressing sectors would be dealt with, he said, and that the doors were open for any later negotiations to provide additional funds needed, as in past years.
He said the Dh40bn budget for 2011 was increased to Dh42bn, last year's budget was set at Dh45bn but increased to Dh46bn, and this year's Dh44bn budget was increased to more than Dh45bn.
Members highlighted a number of obstacles facing the health sector that needed to be considered, including Emiratisation.
They said low salaries for Emirati physicians working for the Ministry of Health had caused an exodus, pushing doctors to work for other organisations and the private sector, resulting in a severe shortage.
The salary of an Emirati doctor at the ministry was Dh15,000 a month, they said, while in other fields a high school graduate could earn about Dh25,000.
"Figures have proven that this lack of cadres is a real problem that the health sector is suffering from," the council said.
There are 160 doctors for every 100,000 residents and the country needs between 300 and 350 annually to solve this problem and reach a rate in line with developed countries, which is 230 per 100,000.
Mr Al Tayer said an agreement would soon be signed with the Ministry of Health to prioritise their needs and meet certain cases, including shortages in medication and hospital equipment.
The council then focused on issues relating to education.
Next year's Dh5.9bn budget for the sector is higher than this year's but members were concerned about the state of public schools in the Northern Emirates, a lack of funding for programmes enriching national identity, and ways to attract local teachers.
The minister said that in the past year, teachers collectively received a Dh900 million salary increase, and more than Dh300m was given in promotions.
At last month's Cabinet retreat, a job ladder to help attract Emiratis to teaching was discussed, but a budget for the project had not yet been set.
A number of other education overhauls also decided at the retreat will soon be discussed by the Cabinet, which will decide when and how much would be spent on the programmes. After that, an additional education budget will be set.
"I cannot talk about the recommendations from the retreat, they will still be spoken about in the Cabinet," Mr Al Tayer said. "Some will be executed in 2014, some over three years, some later. Spending on programmes will be clearer in the future."
Members also asked why all emirates did not contribute to the federal budget, but the minister said that was a decision made by the Cabinet and the Supreme Council, not by his office.
Members said they were unable to look into other ministries budgets individually as the federal budget only came to them in mid-November, although the constitution states that it should be sent to them two months before the next fiscal year.
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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.”

SNAPSHOT

While Huawei did launch the first smartphone with a 50MP image sensor in its P40 series in 2020, Oppo in 2014 introduced the Find 7, which was capable of taking 50MP images: this was done using a combination of a 13MP sensor and software that resulted in shots seemingly taken from a 50MP camera.