Democracy is in retreat around the world, British Foreign Minister Dominic Raab will say on Wednesday in a speech setting out the danger that autocratic regimes pose to stability and prosperity.
This week, Britain announced an overhaul of its foreign and defence policy, making the Indo-Pacific a priority to help moderate the power of China.
In a speech to the US Aspen Security Forum to explain the new UK agenda beyond a domestic audience, Mr Raab will sum up the review as a mission to be a "force for good in the world".
Global democratic institutions are under the greatest threat since the end of the Cold War in 1989-90, he will tell the forum.
"Democracy is in retreat," Mr Raab will say, adding that data showed that this decade the combined economic output of autocratic regimes is expected to exceed the combined output of the world’s democracies.
"Tyranny is richer than freedom, and that matters to us here at home because stable, freedom-respecting democracies are much less likely to go to war, house terrorists or trigger large scale flows of migrants," Mr Raab will say.
"They are generally, not always, but generally easier to trade with, and easier to co-operate with to solve our shared problems."
Since its 2016 vote to leave the European Union, Britain has been searching for a new role on the global stage which lives up to the promise made by Brexit campaigners - namely that, outside the EU, British influence would be projected around the world and bring greater economic prosperity.
Mr Raab's speech will try to show that Britain, although dwarfed economically and militarily by China and the United States, now has a strategy to meet those expectations.
Central to that plan is finding a leading role in protecting democracies and building a new international system based on democratic values.
"Without power, without economic, military, diplomatic, cultural clout, we can do nothing," Mr Raab will say.
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EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
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Cutting red tape on import and export of food
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
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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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