First pan-Arab space organisation formed in Abu Dhabi

The first pan-Arab organisation for space collaboration was formed in the UAE on Tuesday.

On the first day of the Global Space Congress in Abu Dhabi, 11 countries signed a charter to establish a new body that seeks develop the region’s space sector.

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, announced the formation of the new organisation in a series of tweets, saying the group's first project will be a satellite,named 813, that will monitor climate change.

The satellite, named after the year the House of Wisdom was founded in Baghdad and the School of Astronomy was opened during Al Mamun era, will be developed by Arab scientists in the UAE, Sheikh Mohammed said.

"The House brought together scientists, translated knowledge and became a place for region to unleash its scientific energy," he said.

Sheikh Mohammed also said he had faith in the capabilities of the Arab mind.

"Our region is a civilisation. Our youth are builders of civilisations. We must all believe in this principle," he said.

Sheikh Mohammed bin Rashid attending the opening day for the congress, in its second year, and toured the exhibition, where he was also briefed on the UAE Space Agency’s projects.

During the keynote speech, Dr Ahmad Al Falasi, Minister of State for Higher Education and Advanced Skills and Chairman of the UAE Space Agency, said the global space sector is witnessing a new phase of development driven by technological breakthroughs. He said the entry of many new players into the sector has led to an increase in demand for space related services, reported state news agency Wam.

The Global Space Congress, organised by the UAE Space Agency, is the largest gathering of global space industry leaders in the Middle East and North Africa.

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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.”

First pan-Arab space organisation formed in Abu Dhabi

The first project the group will work on will be a satellite

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