Stacy Peters and her daughters Caroline and Lily. Mrs Peters was recently awarded custody of her older daughter by a Dubai court.
Stacy Peters and her daughters Caroline and Lily. Mrs Peters was recently awarded custody of her older daughter by a Dubai court.
Stacy Peters and her daughters Caroline and Lily. Mrs Peters was recently awarded custody of her older daughter by a Dubai court.
Stacy Peters and her daughters Caroline and Lily. Mrs Peters was recently awarded custody of her older daughter by a Dubai court.

'Missing' Dubai toddler returns to mother


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DUBAI // The American toddler at the centre of an international custody case has been returned to her mother after a Dubai court honoured a foreign custody order.

Caroline Peters, 21 months, had been ruled missing in May by a US judge, although she had never left her home in Dubai.

Her mother, Stacy Peters, left the girl in March after her husband pressed charges against her for adultery and drug abuse.

Although Mrs Peters had been awarded custody of Caroline in Tennessee, the UAE did not initially enforce the foreign order.

Mrs Peters returned to Dubai in September, where she gave birth to the couple's second daughter, Lily, and worked with the local court system to have Caroline returned.

"Finally, after seven months I have my little girl back," she said. "I'm ecstatic that hopefully this will all be over soon, and I will be back in the US with my daughter."

Caroline's father, Charles Peters, is an instructor for the UAE Armed Forces and had been working for custody of the child in Dubai courts.

But when the Dubai Family Law Court gave custody to Mrs Peters last week, based on the US judgment, he initially refused to hand over the toddler.

Mr Peters was arrested and held for several days, but said he and Mrs Peters would return to the US together to come to a custody agreement.

"Three days away from your daughter makes you see things differently," Mr Peters said. "I don't want to fight with Stacy any more. I just want for us to figure things out."

International child custody cases are particularly convoluted in the UAE, because the country is not a signatory to the Hague Convention on the Civil Aspects of International Child Abduction, which outlines the procedures for returning a child across borders.

Diana Hamade, a lawyer in Dubai and founder of International Advocate Legal Services, said the UAE was not a signatory as foreign orders might conflict with Sharia rulings.

"It is not so unusual for the courts here to recognise a foreign order if it is in line with local law and the best interests of the child," she said.

Our legal advisor

Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.

Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation. 

Education: Sagesse University, Beirut, Lebanon, in 2005.

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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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