RIYADH // Toby Keith is the first American musician to stage a concert in Saudi Arabia, where young people say they are starved of public entertainment and recreation.
But for many of the hundreds of young men streaming into the stadium on the outskirts of Riyadh that MBC had turned into a high-budget concert set, the more important fact was that the oud musician Rabeh Saqer was playing his first concert in over a decade.
Saqer’s songs of nationalism and unrequited love are widely loved here. Less well-known is Keith’s American country variation on similar themes.
“No! That’s what his music is about?” Abdulaziz, 28, laughed when asked if he knew Keith’s songs about killing Taliban or his many odes to alcohol. “It’s a new concept for Saudis ... they’ll get to know the texture of American music,” he added.
The concert, apparently brought together directly by the royal court and not the entertainment ministry, was billed as a night of cultural understanding and synthesis, timed to complement US president Donald Trump’s visit to Riyadh with the goal of strengthening ties that had become strained for a variety of reasons under his predecessor.
The Saudi men in the audience — only males were allowed to attend — were as pragmatic about Keith’s decidedly un-Saudi subject matter as they were about Mr Trump and the superlatively positive atmosphere around his visit, despite Mr Trump’s Islamophobic campaign rhetoric and statements about Saudi.
“I am very comfortable with his way of leading the USA and the relationship with Saudi,” Abdulaziz said. “It’s a good visit for both countries.”
Food trucks lined the plaza outside the stadium, and young men hung out in groups, eating, smoking cigarettes, enjoying the mild weather. Others said their prayers just inside the hall, as the musicians warmed up inside.
For some Saudis, Mr Trump’s decision to make their country his first stop on his first overseas trip as US president has injected a measure of optimism at a time when there is great uncertainty over plans to diversify the economy. A previous generation’s assumptions about the state providing for all their needs has given way to the new realities of sustained low oil prices and austerity policies.
“I expect as a citizen I will benefit from this visit,” said Sokinah Bohligah, a Saudi journalist in Riyadh, who hopes the tens of billions in economic deals and commitments signed during the visit will help create infrastructure and better education and job options. “What the Saudi citizen needs most is job opportunities, what the Saudi citizen wants most is to develop and get better opportunities — this is what matters to me as a citizen.”
In a country where women's lives are legally controlled by male guardians, photos and video footage of Mr Trump's daughter Ivanka participating in meetings resonated with many in the kingdom. The Arabic phrase "daughter of Trump" was the most tweeted hashtag in the country, according to Arab News.
The gender restrictions at the concert have dominated the narrative in the US and elsewhere, and not the opening up of entertainment options that could be an important development for young Saudis if it continues. It is certainly one they support wholeheartedly.
“I don’t mind that it’s only men,” said one of the female reporters at the concert. She said recent shows by Saudi poets and other artists had been mixed, but having the same for the first American musician to perform here would have been pushing too hard against conservative sentiments, which are still powerful.
“Things are changing, we can see them changing,” she said. “It’s a start.”
Backstage, Keith, wearing, unsurprisingly, a cowboy hat and boots, refused to answer questions about the all-male audience. And he insisted his performance had nothing to do with Mr Trump’s visit.
“I just wanted to make history.”
tkhan@thenational.ae
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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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