From sweeping “zero covid” border shutdowns to restrictions on travel to and from southern African countries, travel bans are once more gripping the world.
At least 15 countries have new restrictions in place as fears grow that the Omicron variant of the coronavirus could be more transmissible than the more common Delta strain.
Even if the virus does not worsen illness among infected people, higher case numbers through increased transmission could still place unbearable strain on hospitals around the world this winter.
But on Tuesday, Nicholas A Christakis, a professor of social and natural science at Yale University, suggested that travel bans could only buy time and could be too little, too late.
“We may assume Omicron is everywhere and that border closures are of little use,” Dr Christakis said, referring to analysis that the variant could have emerged about a month before it was identified.
That has now been confirmed by the news that the Netherlands detected Omicron in samples from Covid patients on November 23, prior to an announcement by officials that it had entered the country on Sunday on a flight from South Africa.
The World Health Organisation appears to concur with Dr Christakis, urging caution where border closures were concerned.
“Travel restrictions may play a role in slightly reducing the spread of Covid-19 but place a heavy burden on lives and livelihoods,” Matshidiso Moeti, WHO’s regional director for Africa, said on Monday.
“WHO is correct to advise that travel bans may delay but will not prevent the arrival of any more transmissible variant than Delta,” Mark Woolhouse, professor of infectious disease epidemiology at the University of Edinburgh, told The National.
“This is a well-established epidemiological principle and has been demonstrated by the spread of the Delta variant worldwide, regardless of countries' policy regarding international travel,” he said.
All it takes for a variant to take hold in a population is a small number of cases, Dr Woolhouse said.
Those infected with a potentially more transmissible variant could in theory arrive in a country before the variant is identified by health authorities.
“Epidemiological studies of this pandemic so far have demonstrated that travel has little or no impact on the size of a country's epidemic. This is because if the 'R' number is greater than one then even a handful of imported cases is enough to start a wave,” he said.
The 'R' number is the average number of cases generated by one person infected.
That seems to have been the case in the UK, which banned travel to and from India on April 23, a country in the grip of the virulent Delta variant.
The variant at the time of the ban was “of concern” to the WHO and had been present in the UK since March 8, when a case was identified. Despite the ban, Delta overwhelmed UK health services.
Buying time
“It’s becoming clear that Omicron is already spreading in communities outside southern Africa. Travel bans are a blunt instrument. They can buy time but are of only limited effectiveness,” said Martin McKee, professor of European public health at the London School of Hygiene and Tropical Medicine.
He said such bans were only one tool in an arsenal of anti-coronavirus measures that need a more systemic implementation.
“It is more important to make travel as safe as possible. This means pre- and post-travel PCRs, but this must be with tests that pick up the Omicron signature, the S Gene Target Failure," he said, referring to a unique genetic characteristic of the virus.
“However, border defences will never be enough alone so, in the face of this new variant, countries must reinforce their testing and tracing systems and non-pharmacological measures such as better ventilation and mask-wearing,” he said.
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.”
New UK refugee system
- A new “core protection” for refugees moving from permanent to a more basic, temporary protection
- Shortened leave to remain - refugees will receive 30 months instead of five years
- A longer path to settlement with no indefinite settled status until a refugee has spent 20 years in Britain
- To encourage refugees to integrate the government will encourage them to out of the core protection route wherever possible.
- Under core protection there will be no automatic right to family reunion
- Refugees will have a reduced right to public funds
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
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COMPANY PROFILE
Company name: Happy Tenant
Started: January 2019
Co-founders: Joe Moufarrej and Umar Rana
Based: Dubai
Sector: Technology, real-estate
Initial investment: Dh2.5 million
Investors: Self-funded
Total customers: 4,000