US president Barack Obama and Indian prime minister Narendra Modi embrace each other upon the president and first lady's arrival at Palam airport, New Delhi on January 25, 2015. EPA/Press Information Bureau/Handout
US president Barack Obama and Indian prime minister Narendra Modi embrace each other upon the president and first lady's arrival at Palam airport, New Delhi on January 25, 2015. EPA/Press Information Show more

Obama arrives in India to a warm welcome from Modi



NEW DELHI // President Barack Obama arrived in India on Sunday and was greeted to an elaborate welcome at the country’s sprawling presidential palace, before laying a wreath at a memorial honouring Mahatma Gandhi.

Prime Minister Narendra Modi was waiting for Mr Obama at the steps of Air Force One on Sunday morning and the two men shared a hug, underscoring the warm relationship they have formed in the short time that Mr Modi has been in office.

The president and prime minister were to spend much of Sunday discussing climate change, defence and economic ties. On Monday, Mr Obama will be the guest of honour at India’s Republic Day festivities, making him the first US president to ever attend the anniversary of the country’s democratic constitution.

“It is a great honour,” Mr Obama said after reviewing an Indian honour guard formation at Rashtrapati Bhavan, the presidential palace. “We are so grateful for the extraordinary hospitality.”

Following their meetings, the US president and Mr Modi were to issue statements and address reporters.

The two leaders strolled briefly through the picturesque gardens of Hyderabad House where they held their discussions, walking past little ponds of lotus flowers, before sitting down and talking some more over tea. Both looked relaxed and smiled and laughed often as they chatted animatedly.

Earlier in the day, the normally bustling streets of New Delhi were empty and the sidewalks cleared by Indian police as Mr Obama’s motorcade sped from the presidential palace to Gandhi’s memorial. A massive security presence was in place for Mr Obama’s visit, with numerous roadblocks and armed men lining the streets.

Mr Obama walked in his socks into a walled courtyard to lay a large white wreath at the site where Gandhi, the father of India’s independence movement, was cremated. He then shovelled dirt and poured a pitcher of water around a young tree planted in his honour at the memorial.

While much of the US president’s trip to India is to be symbolic, the White House is seeking to make progress on numerous policy matters. Relations between the United States and India have been strained in recent years, but have been improving since Mr Modi took office last year.

High on Mr Obama’s agenda is making progress on getting heavily polluted India to agree to curb carbon emissions. White House officials hope the surprise climate agreement that the US struck with China in November might spur India to take similar steps, though that’s unlikely to happen during this visit.

As the leaders’ talks opened on Sunday, the prime minister presented Mr Obama with a copy of a 1950 telegram from the US, congratulating India on the adoption of its constitution.

The US president is cutting his trip short to go to Saudi Arabia on Tuesday to pay his respects following the death of King Abdullah. In doing so, the White House had to cancel a tour by the president and first lady of the Taj Mahal, the famed white marble monument in the city of Agra.

* Associated Press

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Started: May 2018

Founder: Arjun Mohan

Based: Dubai

Size: 23 employees 

Funding: Raised $5.8m in a seed fund round in December 2018. Backers include Y Combinator, Beco Capital, Venturesouq, Paul Graham, Peter Thiel, Paul Buchheit, Justin Mateen, Matt Mickiewicz, SOMA, Dynamo and Global Founders Capital

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The flights 

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Where to stay 

The modern-art-filled Ambassador hotel (myconianambassador.gr) is 15 minutes outside Mykonos Town on a hillside 500 metres from the Platis Gialos Beach, with a bus into town every 30 minutes (a taxi costs €15 [Dh66]). The Nammos and Scorpios beach clubs are a 10- to 20-minute walk (or water-taxi ride) away. All 70 rooms have a large balcony, many with a Jacuzzi, and of the 15 suites, five have a plunge pool. There’s also a private eight-bedroom villa. Double rooms cost from €240 (Dh1,063) including breakfast, out of season, and from €595 (Dh2,636) in July/August.

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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.”