The US on Monday said it would maintain restrictions on international travel to the country, sidestepping European pressure, as cases of the Covid-19 Delta variant continue to rise.
“The more transmissible Delta variant is spreading both here and abroad,” White House Press Secretary Jen Psaki told reporters on Monday as to the decision to keep the restrictions.
The Delta variant has contributed to a spike in Covid cases in the US, particularly among unvaccinated people, and Ms Psaki said she expected the trend to continue “in the weeks ahead".
Asked how travel restrictions would help, Ms Psaki said, "[Delta] is the dominant variant in the United States. That doesn't mean that having more people who have the Delta variant is the right step.”
The US has restricted travel from the EU, Britain, China and Iran for more than a year due to the Covid-19 pandemic, later adding other countries including Brazil and India.
The EU in June opened up to travellers from the US, with most countries requiring proof of vaccination or negative tests, under pressure from tourism-dependent nations such as Greece, Spain and Italy, which feared another troubled year.
EU leaders have asked the US to show reciprocity, and President Joe Biden on July 15 said he would have an answer on the issue “within the next several days” after appeals from German Chancellor Angela Merkel.
The Biden administration has refused to offer any clues on when it will walk back the measures and has not disclosed if it will remove restrictions on individual countries or focus on enhancing traveller scrutiny.
Reuters reported last week that the White House was discussing the potential of mandating Covid-19 vaccines for international visitors, but no decisions have been made, sources briefed on the matter said, though the idea remains under active discussion.
The administration has also been talking to US airlines in recent weeks about establishing international contact tracing for passengers before lifting travel restrictions.
The US is seeing a steady increase in new coronavirus infections, with an average of at least 47,000 daily cases reported, the US Centres for Disease Control and Prevention (CDC) said.
Mr Biden is receiving some backlash after seemingly declaring “independence from the virus” on July 4 of this year.
The country has still not met his goal of having 70 per cent of the adult population partially vaccinated, though the CDC says that figure hit 69 per cent on Monday.
An overwhelming number of the new cases are among the unvaccinated, though The New York Times reported the US has more than enough vaccine supply to inoculate every adult.
Despite this, the US is right behind Russia in terms of the level of vaccine hesitancy in the country, a Morning Consult study from last week said.
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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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How the UAE gratuity payment is calculated now
Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.
The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.
1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):
a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33
b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.
2. For those who have worked more than five years
c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.
Note: The maximum figure cannot exceed two years total salary figure.
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