DUBAI // Young people in the Middle East are more religious, more optimistic and have more admiration for their political leaders than their western counterparts, a survey indicates.
More than half of those surveyed in the UAE, Jordan, Egypt, Saudi Arabia, Kuwait and Qatar said they thought their countries were going in the right direction.
Two-thirds of those surveyed in the US, UK and Germany, however, thought their countries were headed the wrong way.
In the survey, conducted by the public relations firm Asda'a Burson-Marsteller throughout September, 1,800 people aged 18-24 were questioned on the internet about their spending habits, who they listened to for advice, their career aspirations and their views on the challenges facing the world.
Asked how they defined success, 34 per cent of respondents in the Middle East said it involved making the world a better place. Five per cent said it was important to earn a lot of money.
Young people in the West were more materialistic, with 12 per cent saying it was important to earn a lot of money and 12 per cent saying they wanted to make the world a better place.
Far fewer people in this region were concerned about the environment and global warming than their peers in Europe and the US, but they were more worried about the loss of traditional values and culture, and the effect of corruption in government and public life.
Despite those worries about corruption, 30 per cent said they looked up to their political leaders, compared with only nine per cent in the West.
Young Arabs were also far more religious, with 31 per cent looking up to religious leaders compared with only five per cent in the West.
Mark Penn, the global chief executive officer of Asda'a Burson-Marsteller's parent company and a political pollster, has advised the former US president Bill Clinton, and the former UK prime minister Tony Blair. He also helped run Senator Hillary Clinton's campaign for the US Democratic presidential nomination this year.
Mr Penn said the survey, to be repeated each year, appeared to show that both sets of young people were less rebellious and more focused on their futures than previous generations.
"Only 30 per cent of youth in both areas were uncertain about their careers, which suggests that they have much greater certainty than in the past," he said. "I'm used to looking at youth data with a greater sense and indication of rebellion than I'm seeing here.
"I think we are seeing this generation, both in the West and in the Middle East, wanting change but not radical change. They are looking for fulfilment of opportunities.
"One of the surprises in the survey was how optimistic Middle East youth really are about their future and the development of the region.
"They are very education-oriented and these numbers are very good for the region and the development of youth. If you have young people who are highly identified with religion and education, and highly motivated to be successful, the results 20 years on are quite phenomenal."
Asked whether young people in the West were likely to become more optimistic after Barack Obama was elected in the US, Mr Penn said it would take time and a positive performance by the new president before that would start to change.
"In the West people are concerned about the economy, and to a lesser extent the war, and obviously Obama's election is the first step towards turning that around," he said.
gmccleneghan@thenational.ae
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In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
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At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
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.”
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Killing of Qassem Suleimani
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