Response needed to great demand for VoIP services

In reference to the article Skype opens channels to the region's regulators (March 12), it is ironic that in a country which is largely made up of expatriates that VoIP services which are part and parcel of one's everyday life in many parts of the world have to be considered, regulated, subjected to so many legalities and be offered by "licensed holders" only. Is there any surprise that people resort to illegal popular sites to communicate?

There seems to be a lot of discussion and cautious anticipation of what the charges are going to be. Everyone understands that the business aspect of generating revenue would be topmost in the minds of these licensed holder giants and customer satisfaction, ease and availability of usage would be secondary. Yes, there have to be controls on anything that is available to the general public to prevent abuse, but to vilify service providers who offer their services just because they are not under the giant regulatory bodies' umbrellas is immature. I can only hope that when the charges are announced, the service providers transparently inform the general public on the reasons behind them. SS Uma, Abu Dhabi

The editorial The model for a lasting solution to insurgency (March 15) chronicles regional insurgencies and cites the winning of hearts and minds as a workable model. Successful hearts and minds stories retain certain home truths about being won within the boundaries of a nation. But an American or an erstwhile Soviet playing upon the hearts and minds of a faraway population is high octane fuel to drive the insurgency. Iraq and Afghanistan are shining examples.

Indigenous insurgencies like the one just concluded in Sri Lanka and the ongoing one in India are sowed by the seeds of an inherited colonial arrogance. The consequent manifestations are violent insurgencies terrorising the hapless population. It has amply been demonstrated that economic prosperity guarantees the eradication of an insurgency and is the biggest and most sustainable form of winning minds and hearts. Has anyone heard of an insurgency between the citizens of California and Oregon? Or the Finns and Laplanders? Let this model prevail and flourish globally. Ravi Sishta, Abu Dhabi

I refer to Peter Singer's opinion column Animals deserve to run wild, not to be cooped up in cages (March 17). Well said, indeed. Unfortunately as many western countries become more and more aware of these issues, circuses and other commercial operations that exploit animals are finding a new market in the developing world. While travelling in the region I find commercials and posters for travelling circuses that use animals, and this includes Dubai's swim-with-dolphins scheme. I hope the animal entertainment industry does not follow in the footsteps of the highly exploitative and unethical tobacco industry, which also targets developing countries as anti-smoking sentiments keep growing in the West. Maggie O'Neele, Abu Dhabi

In reference to the article Traffic 'Disneyland' to teach children (March 15), the parents need to learn to drive properly long before their kids should get to drive through play. Underage driving itself is an issue which would be worse if this scheme is allowed to progress. AC, Abu Dhabi

All of the comments in the letters section on the Traffic City project have been negative. I know this project from A to Z and it will affect the driving of the younger generation. This project was under research for a long time and it has shown that it will make changes. How many people have taught their children the rules of the road? The project is something that children will enjoy. They learn a lesson for the rest of their lives by having fun. David TA, Dubai

The business article Overseas office talk not cheap (March 17) described how an overseas internet-based virtual private network line in the UAE costs 38 times more than one from New York. Technology cannot be stopped. The best solution would be for Etisalat and du to be much more competitive and give real service by reducing the rates on a par with global rates.Change or perish is the commercial idiom. Understanding that sooner rather than later would benefit all, especially the companies concerned. KB Vijayakumar, PhD, Dubai

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.”

The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem

Rating: 4/5