Saudi Arabia's Foreign Minister Prince Faisal Bin Farhan. Reuters
Saudi Arabia's Foreign Minister Prince Faisal Bin Farhan. Reuters
Saudi Arabia's Foreign Minister Prince Faisal Bin Farhan. Reuters
Saudi Arabia's Foreign Minister Prince Faisal Bin Farhan. Reuters

Saudi Arabia to host Arab-Chinese summit to strengthen political ties


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Saudi Arabia will host an Arab-Chinese summit to discuss further partnerships and cooperation with China, Saudi Arabia’s Foreign Minister, Prince Faisal bin Farhan, announced on Tuesday.

On Monday he took part in an online ministerial meeting of the Arab-China states, which was co-chaired by Jordanian Foreign Minister Ayman Al Safadi and his Chinese equivalent, Wang Yi.

"The Arab-Chinese co-operation increases in strength and diversity with each passing day," Prince Faisal told the Saudi Press Agency.

"It is a co-operation that is based on mutual respect; respect for the principles of international law and norms; the sovereignty and independence of states; the commitment to peaceful resolutions of conflicts; and the mutual desire to deepen and strengthen the areas of co-operation to realise the interests of both the Arab and Chinese peoples.

“And it is no wonder that the positions of China and the Arab countries often aligned in international forums, especially in terms of establishing the foundations of peace, security and the prosperity for all peoples.

"Our joint efforts to face the effects of Covid-19 are some of the fruits of this co-operation."

On Monday, foreign ministers from China and Arab states rejected Israel’s plans to annex parts of the occupied West Bank in a move proposed by the government of US President Donald Trump.

Mr Wang held calls with Prince Faisal and Mr Al Safadi on Saturday.

Chinese media reported Mr Al Safadi said that Jordan was willing to sign One Belt, One Road agreements in fields including trade, investment, science and technology and tourism.

Prince Faisal said Saudi Arabia had deepened bilateral ties with China.

China is Saudi Arabia’s largest trading partner, representing 13 per cent of the kingdom’s total exports and 15 per cent of its imports.

The biog

Job: Fitness entrepreneur, body-builder and trainer

Favourite superhero: Batman

Favourite quote: We must become the change we want to see, by Mahatma Gandhi.

Favourite car: Lamborghini

The stats

Ship name: MSC Bellissima

Ship class: Meraviglia Class

Delivery date: February 27, 2019

Gross tonnage: 171,598 GT

Passenger capacity: 5,686

Crew members: 1,536

Number of cabins: 2,217

Length: 315.3 metres

Maximum speed: 22.7 knots (42kph)

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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