Emirates Palace signed a sponsorship agreement with Robert Rock after he won the Abu Dhabi Golf Championship. Hoagland/The National
Emirates Palace signed a sponsorship agreement with Robert Rock after he won the Abu Dhabi Golf Championship. Hoagland/The National

Abu Dhabi's finest hunts a golfer who kept a tiger at bay



Emirates Palace has signed a sponsorship agreement with Robert Rock, the winner of the Abu Dhabi Golf Championship, who beat rival Tiger Woods at last month's tournament to clinch the biggest win of his career.

The landmark Abu Dhabi hotel's two-year deal with the champion golfer - whose nickname is Rocky - will involve a shirt sponsorship and associations with some events.

Anita Cremer, the director of sales and marketing at Emirates Palace, said the sponsorship agreement was designed to promote the hotel to a younger, trendier audience.

She said the association with the golfer marked the first international sponsorship signed by the hotel, which cost about US$3 billion (Dh11bn) to build. "We want to reach the younger … hipper 40-year-old. At that age people may not think of Emirates Palace," said Ms Cremer.

"Emirates Palace should be a little trendier … With associations with Robert, I think that may prompt some new ideas in people's minds," she added. "He's a young guy, representing a very hip and good-looking generation."

The sponsorship deal was hastily arranged following Rock's victory over his sporting hero Tiger Woods in Abu Dhabi.

The British golfer also triumphed over Rory McIlroy - who himself has a sponsorship deal with Jumeirah Group, a Dubai-based rival of Kempinski, which manages the Emirates Palace.

The hotel initiated the sponsorship discussions with Rock, and the contract was agreed to this week.

The golfing star is also playing at this week's Dubai Desert Classic competition.

Ms Cremer declined to specify the value of the deal. "We want to have the contract for two years, and then see how we progress together," she said.

Rock said that he was also looking at the possibility of setting up a golf academy in the UAE, similar to an initiative he has launched in the UK. "I've started golf academies at home, and I'd like to be able to develop that in this region," he said. "I'd love to do it in Abu Dhabi … We're trying to work out what would be the best way to take it forward."

The golfer said staying at the luxurious Emirates Palace was a somewhat different experience to the hotels he used earlier in his career.

While on tour in the late 1990s, the golfer even had to share a room while staying in the northern English town of Blackpool, a seaside resort known for its faded grandeur. That was not quite a five-star experience. "I can remember once staying in an apartment in Blackpool … which I shared with three friends," he said. "That was slightly different — there were bunkbeds involved."

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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.”

COMPANY PROFILE

Name: Lamsa

Founder: Badr Ward

Launched: 2014

Employees: 60

Based: Abu Dhabi

Sector: EdTech

Funding to date: $15 million

Fourth-round clashes for British players

- Andy Murray (1) v Benoit Paire, Centre Court (not before 4pm)

- Johanna Konta (6) v Caroline Garcia (21), Court 1 (4pm)