Lita San Pedro de la Cruz at Splash in the Centrepoint Mall in Abu Dhabi. She has worked for the company for 17 years.
Lita San Pedro de la Cruz at Splash in the Centrepoint Mall in Abu Dhabi. She has worked for the company for 17 years.

Philippines' top export: its people



People are the Philippines' biggest export, with 10 million of the country's population of 92 million living abroad. A lack of employment opportunities at home forces many Filipinos to seek work overseas but there is a price to pay when one or both migrant parents leave their children behind.

Grace Princesa, the new Philippine ambassador to the UAE, has expressed concern over the growing "feminisation" of migration and its social costs. About 50 per cent of Filipino migrant workers are women, most of whom leave their family behind, she said last month. "Studies show that children aged 12 and below need their parents, especially their mother," she said. "If the mother really needs to go out of the country to work, she should be fully documented, fully protected and the price should be right."

The US$400 (Dh1,470) minimum wage for overseas household workers, which is set by the Philippines government, should be followed, Ms Princesa said. Her agenda includes plans to conduct financial literacy courses for Filipinos in the Emirates early next year; support attempts by her government to make the transition back to Filipino life easier for returning expatriates; improve women's employment prospects at home; and help reduce the need to leave in the first place.

Records from the UAE Ministry of Foreign Affairs showed that as of June 2008 there were about 325,000 Filipinos in the Emirates, but the Philippines' Commission on Overseas Filipinos said there could be an additional 204,000 who live and work here now. Sixty per cent of them are skilled or professional workers, 25 per cent are in the service sector and 15 per cent are household workers. After Saudi Arabia, the UAE is the most popular destination for Filipino workers. Overseas workers worldwide remitted $1.4 billion to the Philippines in September, up 8.6 per cent from a year ago.

Filipinos in the UAE sent home $471 million, or 3.7 per cent, of the $12.8bn in total remittances registered worldwide for the first nine months of the year. They send an average of Dh700 a month, according to UAE Exchange, the country's leading handler of remittances. rruiz@thenational.ae

A resident of the UAE since 1994, Lita San Pedro de la Cruz, 49, said the money she sent home while working in Manama and Abu Dhabi for more than two decades has helped improve her family's quality of life in the Philippines. Mrs de la Cruz said her remittances were used to educate her four children and to renovate the house she inherited from her mother. Three of her four children have graduated from college and have landed overseas jobs; her youngest will graduate in October 2010. "I really don't know how I was able to manage to send them to private schools and later to college," she said. "I did not rely on my husband for their needs." Her eldest son, Fernando, 30, is an accounting graduate who worked at UAE Exchange in 2000 before moving to Holland where he now lives with his wife and their infant daughter. Jennifer, 29, works as a supervisor at Axiom Telecoms in Abu Dhabi and was married this year. Her other daughter, Joanne, 25, recently got a job at Al Ansari Exchange after arriving in Abu Dhabi on December 2. Both are marketing graduates. Her youngest son, Ahmed, 20, is a marketing student in Manila. Mrs de la Cruz left the Philippines in 1985 to work as a cashier at a bakery in Bahrain and moved to Abu Dhabi in 1994. "After being away from my children for a long time, the only way for me to be with them was to provide them the best education so they could join me here later," she said. Before leaving the Philippines, she and the family rented a one-bedroom apartment in Manila. When she and her husband separated, the children moved into their grandmother's home in Angat, Bulacan, about 35km north of Manila. "I have simple dreams both as a mother and an overseas Filipino worker," she said. "All I want is for my children to have a good education and see all of them graduate from college." Mrs de la Cruz married when she was 18 and did not finish high school. "I did not want them to follow in my footsteps, so I worked hard overseas to send them all to school," she said. She started out as a sales assistant at Splash, a GCC fashion retailer with headquarters in Dubai. "But Dh800 (US$215) was not enough to pay for the education of my children who all attended a private school," she said. "Although we're paid for overtime work, I still had to take a salary advance from my company and the money was used to pay for school fees for the entire year." She worked at different outlets in Sharjah and Dubai, and requested a transfer to Abu Dhabi in 2000 when her eldest son arrived in the capital to work for UAE Exchange. Of the Dh1,000 she earned each month in 1994, Mrs de la Cruz sent Dh800 each month to her children. As a migrant worker, she was also in a position to help her sister and cousins. "I was indeed blessed with a good job and an employer who valued my hard work," she said. Mrs de la Cruz still works at Splash after being with in the company for 17 years and now earns Dh6,500 a month. "My children have always been my top priority."

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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.”

Emergency

Director: Kangana Ranaut

Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry 

Rating: 2/5

The specs

AT4 Ultimate, as tested

Engine: 6.2-litre V8

Power: 420hp

Torque: 623Nm

Transmission: 10-speed automatic

Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)

On sale: Now

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Day 5, Dubai Test: At a glance

Moment of the day Given the problems Sri Lanka have had in recent times, it was apt the winning catch was taken by Dinesh Chandimal. He is one of seven different captains Sri Lanka have had in just the past two years. He leads in understated fashion, but by example. His century in the first innings of this series set the shock win in motion.

Stat of the day This was the ninth Test Pakistan have lost in their past 11 matches, a run that started when they lost the final match of their three-Test series against West Indies in Sharjah last year. They have not drawn a match in almost two years and 19 matches, since they were held by England at the Zayed Cricket Stadium in Abu Dhabi in 2015.

The verdict Mickey Arthur basically acknowledged he had erred by basing Pakistan’s gameplan around three seam bowlers and asking for pitches with plenty of grass in Abu Dhabi and Sharjah. Why would Pakistan want to change the method that has treated them so well on these grounds in the past 10 years? It is unlikely Misbah-ul-Haq would have made the same mistake.

COMPANY%20PROFILE
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Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Abu Dhabi Equestrian Club race card

5pm: Abu Dhabi Fillies Classic (PA) Prestige; Dh110,000; 1,400m
5.30pm: Abu Dhabi Colts Classic (PA) Prestige; Dh110,000; 1,400m
6pm: Maiden (PA); Dh80,000; 1,600m
6.30pm: Abu Dhabi Championship (PA) Listed; Dh180,000; 1,600m
7pm: Wathba Stallions Cup (PA) Handicap; Dh70,000; 2,200m
7.30pm: Handicap (PA); Dh100,000; 2,400m

SPECS
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COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
What is Diwali?

The Hindu festival is at once a celebration of the autumn harvest and the triumph of good over evil, as outlined in the Ramayana.

According to the Sanskrit epic, penned by the sage Valmiki, Diwali marks the time that the exiled king Rama – a mortal with superhuman powers – returned home to the city of Ayodhya with his wife Sita and brother Lakshman, after vanquishing the 10-headed demon Ravana and conquering his kingdom of Lanka. The people of Ayodhya are believed to have lit thousands of earthen lamps to illuminate the city and to guide the royal family home.

In its current iteration, Diwali is celebrated with a puja to welcome the goodness of prosperity Lakshmi (an incarnation of Sita) into the home, which is decorated with diyas (oil lamps) or fairy lights and rangoli designs with coloured powder. Fireworks light up the sky in some parts of the word, and sweetmeats are made (or bought) by most households. It is customary to get new clothes stitched, and visit friends and family to exchange gifts and greetings.