Abu Dhabi - October 22, 2008: Abdullsattar Aldloushi holds his UAE ID card in Abu Dhabi October 22, 2008. (Jeff Topping/The National)
Abu Dhabi - October 22, 2008: Abdullsattar Aldloushi holds his UAE ID card in Abu Dhabi October 22, 2008. (Jeff Topping/The National)

One identity card, multiple uses



ABU DHABI // Imagine substituting the entire contents of your bulging wallet for a single, convenient card. Under Government plans to introduce a new national identity card, for Emiratis and expatriates alike, driving licences, health, labour and even debit cards could disappear, to be replaced by a single piece of plastic. That might make the national ID card rather convenient, but talks are also under way with banks to allow people to load money on to them and use them as debit cards.

In the wake of the banking fraud that in recent weeks has obliged most customers to change their PIN numbers, as well as concerns about the safety of personal information, many will be worried about security. On Tuesday, the Government took many by surprise when it announced that not only Emiratis but also professional expatriates had only two months in which to obtain a national ID card or lose access to health care and other government-related services.

Although nationals have been able to register since January, and 635,000 out of 835,000 have done so, expatriates had been told previously that they had two years to register. The Government says that, in addition to helping it to maintain more comprehensive records on foreign residents and Emirati nationals, the scheme is also designed to protect against identity theft. Some experts, however, believe a national identity card scheme could have the opposite effect and make sensitive information more vulnerable to theft.

There is also the question of whether the scheme can possibly be introduced within the new, dramatically reduced time frame. Thamer Rashed al Qasemi, planning director for the Emirates Identity Authority (EIDA), which is responsible for the scheme, insisted yesterday that the estimated 400,000 professional expatriates living in the UAE could be processed by the end of the year. In addition to the 28 registration centres set up around the country, the Government is also sending mobile units to workplaces and other locations.

"Once you are in front of an operator," said Mr Qasemi, "it takes just 14 minutes." Nevertheless, it is a tall order. Including the 200,000 Emiratis the Government says remain to be registered, a total of up to 600,000 people now have to be processed. With only 48 working days left before the end of the year (excluding holidays) 12,500 individuals must be processed every day between now and Dec 31.

Yesterday the programme got off to a discouraging start when the EIDA website - www.emiratesid.ae - which applicants are advised to visit for details of where and how to register, crashed. Many expatriate residents were unaware yesterday that they have only until Dec 31 to register for the new national identity card. A straw poll conducted by The National at Abu Dhabi's Marina Mall found most westerners did not even know about the new ID cards.

"This is the first I've heard about an ID card scheme," said Simon Baldwin, 22, a British surveyor working for Fugro Geoconsulting. "My line of work means that I'm in and out of the country a lot, so I hope that my company can take care of this for me." Almost all residents, however, were in favour of the new ID cards which, in addition to biometric information from face and fingerprint scans, will carry personal information, including passport and driving licence details, address, residency status and qualifications. Many said they were fed up with having to carry so many different forms of identification.

"I think the cards are a good idea," said Husain Al Marzouqi, an Emirati and public relations supervisor for Das Holding, who received his ID card three months ago. "I used to have many cards, now my wallet feels much lighter." Mr Qasemi, a software engineer, said the ID-card technology being used was already in use within the French health industry and had proved itself to be reliable. Under the scheme, a "smart card" system would ensure that only approved people would be able to access the card either to read, write on it or update it. Despite the recent breaches in security within the financial sector, banking experts also say they believe the technology will be secure. Ahmed al Naqbi, senior manager of channels and electronics at the National Bank of Abu Dhabi, said that while some of the banking security systems were five, 10 or even 20 years old, this was a "new system which will have the most up to date security systems in place", which should ensure that it is not easy to hack into. Others, however, are less convinced. Dr Gus Hosein, a senior fellow at Privacy International, a British-based surveillance watchdog, and a visiting fellow at the London School of Economics, has been studying plans to introduce a similar system in Britain and doubts the UAE's system will be as secure as its proponents would like to believe. The Government, he warned, would be "taking all the jewels of the information economy, that is people's personal information, and putting it all into one place with a big sign outside the door that advertises 'People's information available here'". "Why would a criminal ever bother with going after a bank when instead they can hit the central system run by the Government that is highly unlikely to be secured adequately. "Of course the Government may say that the system will be secured, but as we've seen in the UK, where they have lost files on just about every member of the population, this is impossible." John Daugman, an academic at The Computer Laboratory at Cambridge University and a former member of the Biometrics Assurance Group, which reviewed plans for a similar British scheme, said the technology chosen by the UAE and Britain alike would cause problems for the system here. Fingerprints and facial photos, he said, were not sufficiently distinctive for telling apart a population of five million people; iris recognition would have been far more effective. "The UAE has been a leading innovator and groundbreaker in the deployment of biometrics in national programmes such as its iris-based border security system," he said. "This has been deployed since 2001 and is now used at all 32 air, land and sea ports of entry into the UAE. Every day, some 12 billion iris comparisons are performed in this exhaustive mode of biometric database checking." Face and fingerprint biometrics, he said, were far too weak to check for any multiple or duplicate identities. He believes the "weaker biometrics" were chosen because the International Civil Aviation Organisation has specified them for machine-readable travel documents "and there is pressure for all countries to use what is standard and more familiar". kattwood@thenational.ae * With additional reporting by Jessica Au

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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.”