Observing life: The meaning of friendship


  • English
  • Arabic

A few years ago, back when I lived in the States, I used to hang around with a guy named John Gonzalez, who had a habit of offering you money to do stupid things. "I'll give you 50 bucks if you go to work without any shoes on," he'd say. "I'll give you 30 if you go over to that woman and sing Happy Birthday." Mostly I declined, but there were times when I was tempted. I remember staring at a bottle of red-hot barbecue sauce one night, wondering how much damage it would do to my insides if I drank it. Gonzalez was prepared to pay $75 to find out. I took one sip and ran to the toilet in tears. Oh, how he laughed.

I don't think the aim was to inflict pain and humiliation. Instead, I think Gonzalez enjoyed watching his dilemmas play out. He'd study your face as you considered whether or not to smear spaghetti sauce in your hair before leaving a restaurant ($25), fascinated by the expressions of doubt and anxiety. He was either a student of human behaviour or a nut, it's hard to say. The weirdest thing about all this, perhaps, was the precision with which Gonzalez calibrated the pros and cons of his proposals. What he really wanted, you felt, was to create a situation where the conflicting impulses of risk and reward were so evenly balanced that the choice became impossible to make.

It was better yet if you were desperate for cash, if he could offer a desultory amount and still get your instincts in a twist. For instance: Gonzalez was the owner of a ratty old cat, named Cat, who smelled so bad it made your eyes water to be in the same room. I remember once he offered me $10 to wear Cat on my head, "like a hat", for 30 seconds. In the end I refused, but I was broke enough that the end was a long time coming. And that, for Gonzalez, was a victory in itself.

One thing you could say for him, though: Gonzalez was always happy to pay out - in fact, he was never happier. He seemed to derive a special pleasure from watching self-preservation succumb to self-gratification. It was as if he was setting out to prove a point. There were times I wondered what lengths Gonzalez might have gone to if he'd been a wealthy man, whether his offer of $20 to lick the wheel of a bus would have moved on to more ambitious levels: $10,000 to let the bus run over your foot; $10,000,000 to let it run over your head.

The last time I saw my friend, I was going through a bad patch. There had been an illness in my family. I had to fly out of the country. I couldn't afford a ticket. "How much do you need?" Gonzalez asked me one night. I waited for the "How bad do you need it?" but that didn't happen. Instead, he pressed the money into my hand, hugged me tightly and walked away.

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.”

German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

UAE players with central contracts

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