Former US President Barack Obama was among those who saw the numbers of their Twitter followers fall after the social-media site purged the platform of suspected fake users this week. AFP PHOTO
Former US President Barack Obama was among those who saw the numbers of their Twitter followers fall after the social-media site purged the platform of suspected fake users this week. AFP PHOTO
Former US President Barack Obama was among those who saw the numbers of their Twitter followers fall after the social-media site purged the platform of suspected fake users this week. AFP PHOTO
Former US President Barack Obama was among those who saw the numbers of their Twitter followers fall after the social-media site purged the platform of suspected fake users this week. AFP PHOTO

Twitter's fake-user purge separates the bots from nots


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Former US president Barack Obama and celebrities Ellen DeGeneres and Taylor Swift were among those who lost large swaths of Twitter followers in the social-media site’s crackdown on fake users and bots suspected to be linked to up to 10 million accounts.

President Donald Trump, one of the most prolific and high-profile tweeters, lost about 100,000 of his approximately 53.4 million Twitter followers, according to the Washington Post, and Mr Obama lost about 400,000 from his 104 million followers. Katy Perry, currently the most-followed person on Twitter, had more than 109 million followers Wednesday - a number that plunged to about 108 million by Thursday afternoon.

On Wednesday, Vijaya Gadde, Twitter’s head of legal, policy, trust and safety, said the company would begin removing "locked accounts from follower counts across profiles globally. As a result, the number of followers displayed on many profiles may go down." Locked accounts are those identified to have involved sudden suspicious changes in activity.

The company recently said it's identifying almost 10 million dubious accounts a week and is putting all accounts through a security check. The Washington Post reported last week that Twitter has suspended more than one million accounts a day in recent months, and the rate has more than doubled since October, when the company, under congressional pressure, revealed how Russians used fake accounts to manipulate the US presidential election.

Twitter shares fell 5 per cent on Monday on concern that removing millions of fake accounts would impede user growth. The stock gained 3.2 percent on Thursday.

Other high-profile figures also took a hit to their numbers of followers. Stephen Fry lost 400,000 followers while Star Wars actor Mark Hamill lost 15,000.

Twitter’s top executive didn’t slide by unscathed either.

Jack Dorsey, chief executive officer and co-founder, said in a tweet on Thursday that he lost 200,000 followers, bringing his total down to 4 million, after Twitter made good on its pledge to remove suspicious accounts.

In the interest of full disclosure: The main account of The National saw its total fall to 899,000 after six thousand followers were removed by the platform.

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yallacompare profile

Date of launch: 2014

Founder: Jon Richards, founder and chief executive; Samer Chebab, co-founder and chief operating officer, and Jonathan Rawlings, co-founder and chief financial officer

Based: Media City, Dubai 

Sector: Financial services

Size: 120 employees

Investors: 2014: $500,000 in a seed round led by Mulverhill Associates; 2015: $3m in Series A funding led by STC Ventures (managed by Iris Capital), Wamda and Dubai Silicon Oasis Authority; 2019: $8m in Series B funding with the same investors as Series A along with Precinct Partners, Saned and Argo Ventures (the VC arm of multinational insurer Argo Group)

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.”

PROFILE OF INVYGO

Started: 2018

Founders: Eslam Hussein and Pulkit Ganjoo

Based: Dubai

Sector: Transport

Size: 9 employees

Investment: $1,275,000

Investors: Class 5 Global, Equitrust, Gulf Islamic Investments, Kairos K50 and William Zeqiri

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