Expats in Bahrain 'feel like a guest in someone's home when they are having a family row'



BAHRAIN // When Robert Hempel moved to Bahrain with his family just three weeks ago, he never envisaged leaving so soon.

Mr Hempel, a 45-year-old Briton travelling with his 10-month-old daughter Natasha, was among the crowds waiting for flights at Bahrain International Airport yesterday evening, after expatriates were urged to consider leaving the country amid growing unrest on the island.

The stay-at-home dad said his wife's company had advised family members to leave Bahrain, following a government crackdown on protesters calling for reform.

His wife, who is remaining in Bahrain and did not wish to be named, said the family relocated from Qatar just three weeks ago when she took up her new job.

"Me and my daughter are going to London," said Mr Hempel, an engineer. "If things look like they are calm, we'll try to come back soon."

New travel advisories were issued yesterday by several countries, including the UK, Canada and Australia, who have upped their warnings about travel to Bahrain, while advising their citizens on the island to leave if possible.

Commercial flights continued to operate yesterday from Bahrain International Airport, which remained busy, as some expatriates and visitors took heed of the advice and left the country.

British foreign office staff have set-up a booth at the airport to provide assistance to those trying to leave, such as issuing emergency passports for infants who have not yet been issued with travel documents.

The Australian government has issued a "do not travel" warning and urged Australians in Bahrain to leave "if safe to do so", while the Indian Embassy, which caters to the island's approximately 400,000 Indian citizens, has advised people to avoid movement around the Manama city-centre.

Satish Muthiylu, who has lived in Bahrain for ten years, was waiting in the queue to reach the airport check-in area with his wife and 10-year-old son. He said the family had decided to bring forward their annual holiday to India because of the unrest.

"This is the first time we have left for a reason like this," said Mr Muthiylu, a 42-year-old engineer. "We took our own decision from a safety perspective as a preventive measure. Bahrain has been a very good place to live and it's our second home." Many of the island's hundreds of thousands of expatriate residents chose to remain in Bahrain, where schools have been closed until further notice. While there have been isolated reports of panic buying, the mood, according to one long-term Western expatriate, who did not wish to be named, remained "unpredictable".

"I just don't know what to expect hour by hour," she said, speaking at a location in the city centre before the curfew had come into force. "I have thought about going, but I've not put plans in place and I'm considering the options."

The woman's friend, another Western expatriate, said she did not want to leave the island where she raised her children and has called home for her entire adult life.

"It's about having to get up and leave your home, you need to consider it carefully. Over the last month, I haven't heard anyone talking about leaving, until the last four days," she said. "For us long-term expats, we know all sides of the story. I'm not Bahraini, but I feel like a guest in someone's home when they are having a family row. You don't take sides, you are polite and you listen."

Both of the women, who did not wish to be identified because of the sensitivity of the situation, were in Bahrain in the 1990s during a previous period of violent unrest. However, both agreed that the current instability felt more serious.

"The feeling has been very empathetic to the country in general, and the Bahraini community," said second woman. "It's just profoundly sad."

Adding to the uncertainty, they said, has been the arrival of GCC troops on the island. Among at least 1,500 troops are soldiers from Saudi Arabia, a more culturally conservative country than Bahrain.

"I don't understand politically why [the forces were brought in], but personally I don't know how Saudi troops would treat me as a single woman, uncovered and driving," the first woman said. "I'm not sure if they would hassle me. I'd prefer to meet a Bahraini at a checkpoint."

Many of the island's expatriate residents live in compounds, some of which are located close to the predominantly Shiite villages that have borne the brunt of the government crackdown and subsequent clashes.

However, there are many living in areas that have been relatively unaffected by the unrest. The Amwaj residential area on the island of Muharraq has been nicknamed the "green zone" by some, because of its isolated location, far from the violence that has spread from Pearl Roundabout, following the raid on Wednesday morning that once again cleared the area.

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.”

A State of Passion

Directors: Carol Mansour and Muna Khalidi

Stars: Dr Ghassan Abu-Sittah

Rating: 4/5

MATCH INFO

Uefa Champions League semi-finals, first leg
Liverpool v Roma

When: April 24, 10.45pm kick-off (UAE)
Where: Anfield, Liverpool
Live: BeIN Sports HD
Second leg: May 2, Stadio Olimpico, Rome

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