Coronavirus: Indian residents in UAE support the world’s largest lockdown


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Indian residents of the UAE have thrown their support behind their country's 21-day nationwide lockdown, calling it tough but necessary.

India began the world’s largest lockdown on March 25 with1.3 billion people warned to stay indoors to halt the spread of the coronavirus pandemic.

“If there is life, there is a world. To save India and every Indian, there will be a total ban on venturing out," said Prime Minister Narendra Modi in a national televised address on Tuesday.

The government said the lives of citizens was more important than the short-term setback to the economy.

But there are concerns over the affect the shutdown will have on India’s unskilled labourers and the poor who depend on daily wages.

Abu Muadh, who runs a software company and deals with low-income families in the UAE and India, said safety had to be prioritised.

“It’s a trade-off between labourers needing to go out to earn their livelihood and being safe,” said Mr Muadh, founder of a mobile phone application that distributes educational material to workers.

“It’s a very delicate time now and the prime minister and president are doing this with the intention of keeping people alive,” said the Dubai resident, 45, who supports three non-profit schools in Indian villages.

“Daily wage workers are spread over rural and urban India so it’s not easy to understand how their needs will be met. But they are the most vulnerable population. If even one or two workers get infected, the risk of it reaching huge numbers is extremely high.”

Over the past few weeks, several state governments in India grounded flights and closed businesses and schools.

News of the countrywide lockdown triggered a spate of panic buying on Tuesday night.

People rushed to stock up on supplies and police were called to disperse crowds outside supermarkets.

The government called for calm and explained that essential services including supermarkets, pharmacies, banks, petrol pumps would remain open.

Mr Muadh said it was vital to raise awareness among the low income workers to ensure they were not putting themselves at risk.

“If you tell them the disease will spread, they may not believe it, so education is key,” he said.

“The point that makes my heart cry is that we have not put enough effort to educate workers. Many will think that the administration is not considering our livelihood.

"Workers need to understand this is to protect them. There is no other choice. They need to be patient and have faith in the administration. The main thing is to contain the epidemic.”

Officials in India have taken a strict approach to the lockdown, threatening severe repercussions if people are found outside their homes.

In southern India's Telangana state, the administration said it would have no option but to give "shoot-at-sight" orders to police if people broke curfew.

Ahmed Ali, a Sharjah factory worker, said he had cautioned his wife and children in Telangana’s Tandur town to stay indoors.

“Doctors and nurses are working hard and their lives are important so people must understand that when we sit at home, it’s better for all,” he said.

“This [lockdown] is a good decision because the disease spreads when people go out. Some people don’t realise, so they call relatives home and go out to meet people. But you don’t know who will get the disease so I have told my wife and children to stay inside.”

The closure of air travel into and out of the country has separated families.

Sana Akhir, a UAE resident, was visiting family in Mumbai and had booked to return at the month-end.

"I do not know when I will be able to go back [to the UAE] now as these are unprecedented times,” said the mother, 30.

She said the rising cost of food was also cause of concern.

“It’s a difficult situation here and even bread is not available. At the vegetable market, a single piece of cabbage costs Dh5, which would have cost me Dh2 a few weeks ago," she said.

"The lockdown is definitely needed. People are beginning to take it seriously now, and police are patrolling the streets to ensure people don’t venture outside.”

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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.”

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6.35pm: Jumeirah Derby Trial – Conditions (TB) $60,000 (T)
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8.20pm: Al Fahidi Fort – Group 2 (TB) $180,000 (T) 1,400m 

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8.55pm: Dubawi Stakes – Group 3 (TB) $150,000 (D) 1,200m 

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9.30pm: Aliyah – Rated Conditions (TB) $80,000 (D) 2,000m 

Winner: Dubai Icon, Patrick Cosgrave, Saeed bin Suroor  

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How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
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  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less
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