A woman waits to get a Covid-19 vaccine as India recorded more than 50,000 new coronavirus cases for the first time since November as a new wave of infections takes hold. AFP.
A woman waits to get a Covid-19 vaccine as India recorded more than 50,000 new coronavirus cases for the first time since November as a new wave of infections takes hold. AFP.
A woman waits to get a Covid-19 vaccine as India recorded more than 50,000 new coronavirus cases for the first time since November as a new wave of infections takes hold. AFP.
A woman waits to get a Covid-19 vaccine as India recorded more than 50,000 new coronavirus cases for the first time since November as a new wave of infections takes hold. AFP.

India blocks exports of AstraZeneca shot as UK faces five million vaccine shortfall


Neil Murphy
  • English
  • Arabic

India has temporarily blocked exports of the AstraZeneca coronavirus shot made by the Serum Institute of India to tackle a steep rise in infections in the country.

The move is a major setback for the Gavi/World Health Organisation-backed global Covax vaccine-sharing facility, through which 64 lower-income countries are supposed to get doses from the institute.

"We understand that deliveries of Covid-19 vaccines to lower-income economies participating in the Covax facility will likely face delays following a setback in securing export licences for further doses of Covid-19 vaccines produced by the Serum Institute of India, expected to be shipped in March and April," the UN children's fund said.

A medical worker prepares to administer a Covid-19 vaccine at a health centre in New Delhi, India. AFP
A medical worker prepares to administer a Covid-19 vaccine at a health centre in New Delhi, India. AFP

"Covax is in talks with the government of India with a view to ensuring deliveries as quickly as possible."

The pause is expected to further delay the delivery of five million AstraZeneca doses that were due to arrive in Britain this month. Health Secretary Matt Hancock last week blamed the delays on manufacturing issues, which he said would slow down the UK's inoculation efforts.

AstraZeneca told Covax it would make up for the delayed volumes in April and May, Unicef said.

Covax has so far received 17.7 million AstraZeneca doses from the SII, of the 60.5 million doses India has shipped in total, and many countries are relying on the programme to immunise their citizens.

There have been no vaccine exports from India since Thursday, the foreign ministry's website shows, as the country expands its own immunisation effort.

"Everything else has taken a back seat, for the time being at least," said one of the sources.

"No exports, nothing till the time the India situation stabilises. The government won't take such a big chance at the moment when so many need to be vaccinated in India."

The SII has already delayed shipments of the AstraZeneca drug to Brazil, Britain, Morocco and Saudi Arabia. British authorities are in touch with New Delhi to get its second batch of five million doses ordered from SII.

Covax has a deal to buy 1.1 billion doses of the AstraZeneca and Novavax shots that the SII is making in bulk, mainly for low and middle-income countries.

Unicef in Vietnam said on Wednesday that vaccine production issues had led to delays in deliveries to all countries that were scheduled to receive vaccines through Covax.

Unicef said Covax had informed participating countries they would receive lower than expected volumes in March of the AstraZeneca-Oxford shot produced in South Korea.

"In line with the challenges of the current global supply environment, this is due to challenges the company faces in rapidly scaling up supply and optimising production processes for these early deliveries," it said.

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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.”

Company profile

Date started: December 24, 2018

Founders: Omer Gurel, chief executive and co-founder and Edebali Sener, co-founder and chief technology officer

Based: Dubai Media City

Number of employees: 42 (34 in Dubai and a tech team of eight in Ankara, Turkey)

Sector: ConsumerTech and FinTech

Cashflow: Almost $1 million a year

Funding: Series A funding of $2.5m with Series B plans for May 2020

COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
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