UAE opens embassy in Kathmandu, much to delight of Nepalis



ABU DHABI // The UAE opened its first mission in Kathmandu on Tuesday and Nepalis said they hoped it would end exploitation by recruitment agencies of those looking for work in the UAE.

The embassy was opened by Sheikh Abdullah bin Zayed, Minister of Foreign Affairs and International Cooperation.

For many years workers have had to pay large amounts of money to get even a visit visa, but the embassy will now provide consular and visa services.

Nepalese expatriates thought the opening was good news.

“A UAE mission in our country is a great help for us as always we have to pay a huge amount of money to agencies for visas and other consular services,” said Dipak Thakuri, an Abu Dhabi taxi driver.

“For tourist visas, they charge 100,000 Nepalese rupees [Dh3,445] or more. Now this is going to end. I paid 250,000 Nepalese rupees to the agent for my work visa, and now it comes for free.

“I knew that he charged me a huge amount but we can’t do anything. Most people realise that when they reach the UAE, how they were exploited.”

Agents would charge up to Dh5,000 for a month’s tourist visa, which sometimes included an air ticket. But that same visa can be obtained in Abu Dhabi for about Dh350. The new embassy will ensure prices are transparent.

“Now the process will be hassle-free and we will get rid of unscrupulous agencies to exploit poor Nepalese,” said Sudip Karki, head of the Non-Resident Nepalese Association, while thanking the Government for opening the mission.

“This surely will open up new avenues in all sectors and speed up trade, commerce and cultural relations between the both countries.”

Nepalese lorry driver Damar Jang said that many of his countrymen expected to be earning large salaries when they arrived in the UAE, so they put themselves into debt for expensive visas only to find that living costs in the Emirates were high and wages not what they thought.

“If we need to get our documents attested, agents charge huge money,” Mr Jang said. “But now we can directly go to the mission and submit our documents for this. “It’s great news for the Nepalese.”

More than 300,000 Nepalis live in the UAE, and each year about 25,000 come arrive here looking for work.

anwar@thenational.ae

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  • Kirill Shamalov, Russia's youngest billionaire and previously married to Putin's daughter Katarina
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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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In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

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