Ahmed Mahamoud Silanyo, the president of Somaliland, visits Abu Dhabi to build on business opportunities, aid and cooperation against piracy between the two countries yesterday. Sammy Dallal / The National
Ahmed Mahamoud Silanyo, the president of Somaliland, visits Abu Dhabi to build on business opportunities, aid and cooperation against piracy between the two countries yesterday. Sammy Dallal / The NatShow more

President of Somaliland seeks closer ties with UAE



ABU DHABI // Senior government figures from Somaliland have held three days of talks in the UAE on investments, aid and security.
"We have met the leadership of the country and responsible leaders, and had fruitful discussions," said Ahmed Mahamoud Silanyo, president of the self-declared autonomous north-western region of Somalia.
Somaliland declared independence in 1991, but has struggled for recognition from the international community, despite having a democratically elected government.
But its foreign minister, Dr Mohammed Abdullah Omar, said Somaliland was being engaged by countries and international organisations.
Mr Silanyo said he proposed UAE involvement in establishing two hospitals in the towns of Berbera and Burauo.
"We have made a request also for improvements to be made on the Burauo-Hargeisa road, which is known as Sheikh Zayed Road because the late president built it," he said.
The Somaliland government has requested road-building equipment and the tools to dig water wells.
"There is no particular financial estimate for all these projects," Mr Silanyo said.
Dr Omar said investment opportunities in the oil, gas and fisheries industries had been presented.
"We intend to invite a number of UAE business groups to visit and invest in Somaliland in oil and gas-exploration opportunities, and our fisheries industry," he said.
Hussein Abdi Dualeh, Somaliland's minister for mining, energy and water resources, said the autonomous region hoped to be drilling for oil by next year.
On security matters, Mr Silanyo said a joint security delegation was being set up between Somaliland and the UAE.
"We have an understanding to work together," he said. "We are also fighting piracy quite well and a large number of the pirates are in jail."
Security cooperation is on two fronts - antipiracy and counter-terrorism, according to Dr Omar.
"We are the safest part within the region but we are still surrounded by an area filled with extremists, terrorists, criminals and pirates," he said.
"We look to share intelligence, information and notes on the subjects."
The foreign minister added that, although the rate of pirate attacks has dropped drastically, complacency is not an option.
"This massive international presence [in the Gulf of Aden] cannot be sustained, therefore developing security across our own waters is what matters for the future," he said, adding that the UAE's efforts over the last two years had paid off.
The UAE has been aiding the development of Somaliland and Somalia, as well as helping the countries in the region to battle piracy.
"They have presented a framework for action and a platform to launch it through the events and meetings organised last year and the year before," Dr Omar said.
Somalia has functioned without a strong central administration since the ousting of dictator Siad Barre in 1991.
The collapse of his dictatorship led to civil war and clan conflict, which split the country into the regions of Somalia, Somaliland, Puntland and Galmudug.
Last year, the UAE orchestrated and hosted a historic meeting between the presidents of Somalia and Somaliland in Dubai - the first in 21 years.
The then president of Somalia's transitional federal government, Sheikh Sharif Ahmed, and Mr Silanyo signed a declaration that paved the way for future talks and cooperation between the nations.
Mr Silanyo said he hoped the Dubai meeting would be the first step towards such recognition.
But he said yesterday his country was still finding Somalia an obstacle.
"Somalia and Somaliland were part of a federation, and some people still find it hard to accept that this federation does not exist any more," he said.
"We are looking for international recognition from Somalia, who are our brothers and neighbours but they still do not agree."
 
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Jonathan Gornall, Simon & Schuster

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August 1-5: First Test, Edgbaston

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August 22-26: Third Test, Headingley

September 4-8: Fourth Test, Old Trafford

September 12-16: Fifth Test, Oval

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Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.

When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.

How to get there: Emirates currently flies from Dubai to Orlando five times a week.
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Label: Warner Records

Number of tracks: 11

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Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni

Director: Amith Krishnan

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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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Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
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