Venezuela's President Nicolas Maduro shaking hands with Secretary of the Nanshan District Committee of Shenzhen City Huang Xiangyue during a welcoming ceremony in Shenzhen, China on September 9. Miraflores Palace Press Office/AFP
Venezuela's President Nicolas Maduro shaking hands with Secretary of the Nanshan District Committee of Shenzhen City Huang Xiangyue during a welcoming ceremony in Shenzhen, China on September 9. Miraflores Palace Press Office/AFP
Venezuela's President Nicolas Maduro shaking hands with Secretary of the Nanshan District Committee of Shenzhen City Huang Xiangyue during a welcoming ceremony in Shenzhen, China on September 9. Miraflores Palace Press Office/AFP
Venezuela's President Nicolas Maduro shaking hands with Secretary of the Nanshan District Committee of Shenzhen City Huang Xiangyue during a welcoming ceremony in Shenzhen, China on September 9. Miraf

Venezuela's Maduro seeks China's help to join Brics


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Venezuelan President Nicolas Maduro has said he is seeking Beijing's support to join the recently expanded Brics group of emerging economies.

The Brics bloc - Brazil, Russia, India, China and South Africa - agreed at their annual summit last month to admit six new full members, including the UAE, Saudi Arabia and Iran.

In an interview with Chinese state news agency Xinhua on Saturday, Mr Maduro said he aimed to secure Venezuela's entry into Brics "with the support of China, with the support of all countries."

During his state visit Maduro said that Beijing could help achieve the accession of "a country with the largest oil reserves in the world."

"The enlarged Brics could be defined as the great engine for the acceleration of the birth of a new world, a world of cooperation where the global south has the leading voice," he told Xinhua.

"The Brics nations accelerate the de-dollarisation of the world, the emergence of a new international financial system, of a new just economic order," he added.

The Venezuelan president arrived in China on Friday and is expected to stay until Thursday, for his first state visit to the country since 2018.

Beijing is Venezuela's main creditor and has close ties with the diplomatically isolated, inflation-ravaged socialist nation.

The Brics group will welcome its new members from January 1.

Egypt, Ethiopia and Argentina have also been invited to join.

China views Brics as a counterweight to multinational organisations it deems as dominated by the United States and other western rivals, and has pushed for the expansion of the bloc.

Maduro's visit comes as Chinese President Xi Jinping skips a meeting of the G20 major economies in India.

He had praised the "unanimous" decision to expand Brics last month.

“Brics countries are all countries with important influence and shoulder important responsibilities for world peace and development,” he said at the time.

“This membership expansion is historic. It shows the determination of Brics countries for unity and co-operation with the broader developing countries.”

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%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Fasset%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2019%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Mohammad%20Raafi%20Hossain%2C%20Daniel%20Ahmed%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%0D%3Cbr%3E%3Cstrong%3EInitial%20investment%3A%3C%2Fstrong%3E%20%242.45%20million%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%3C%2Fstrong%3E%2086%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20Pre-series%20B%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Investcorp%2C%20Liberty%20City%20Ventures%2C%20Fatima%20Gobi%20Ventures%2C%20Primal%20Capital%2C%20Wealthwell%20Ventures%2C%20FHS%20Capital%2C%20VN2%20Capital%2C%20local%20family%20offices%3C%2Fp%3E%0A

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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Updated: September 10, 2023, 1:05 PM