State Street Global Advisors, the fourth-largest asset manager in the world, is doubling its resources in the Africa and Middle East region, expanding its hubs in the UAE and Saudi Arabia to achieve the company’s growth ambitions in the broader region, its president Yie-Hsin Hung said.
The company aims to further diversify its client base and build on the $100 billion in funds it manages on behalf of its regional investors amid a sharp rise in the affluent clientele.
State Street expects the “remarkable growth” in the GCC to continue, driven by economic diversification programmes, which has opened new avenues of growth for the Boston-based company that manages more than $4.3 trillion in assets.
“Suffice it to say this region, I think, probably offers one of our fastest growing opportunities globally,” Ms Hung, who is also chief executive of the company, told The National in an interview. “It gives you a sense of just how optimistic [we are] and how important this region is.”
The company this week reopened its office in the Dubai International Financial Centre and will continue to maintain a presence in Abu Dhabi as it looks to increase the headcount in the six-member economic bloc of GCC to accelerate growth.
“What we see here is just incredible wealth accumulation, with financial intermediary market growing, family offices growing, and the talent is abundant here, particularly on the asset management side, which is one reason why we've been drawn back to being here in Dubai,” Ms Hung said.
“It's a combination of the market opportunity, as well as the talent and we're increasing the number of people here, bringing specialist to augment our client coverage.”
Before the end of the year, the company’s team of asset managers operating out of Dubai and Riyadh offices will more than double to 30, while the overall headcount in the region, including its operations in Oman, will grow to 68 from the current 35, said Emmanuel Laurina, State Street’s senior executive officer, who oversees its operations in the Africa and Middle East region.
State Street, which has maintained a presence in the UAE for more than three decades, sees opportunities in exchange traded funds as well as outsourced investments, portfolio management and investment strategy space in the region.
For global asset managers such as State Street and BlackRock there is still a lot of untapped potential of growth in the region, which is the homebase for some of the world’s biggest sovereign wealth funds, including Abu Dhabi Investment Authority and Mubadala Investment Company in the UAE and the Public Investment Fund in Saudi Arabia.
The rapid development of financial intermediary market, growth of family offices, a sharp rise in institutional investors as well as in the number of affluent clients on the back of vast distribution of wealth, make the regional markets – especially Saudi Arabia and the UAE – very attractive for asset managers.
More than 350 asset management firms operate out of the DIFC, and the onshore financial hub has a healthy pipeline of wealth and asset managers that are looking to set up base in the emirate.
Dubai, the region’s fastest-growing commercial, financial and trading hub, is home to the Middle East's highest concentration of resident millionaires at 72,500, according to a report by Henley & Partners, which tracks private wealth and investment migration trends worldwide, and global intelligence provider New World Wealth.
Ranked as the 21st wealthiest city in the world, Dubai recorded a 78 per cent growth in its millionaire population over the past 10 years. It is home to 212 centi-millionaires (people with a net worth of $100 million or more in investable assets) and 15 billionaires.
Being home to 22,700 millionaires, Abu Dhabi was ranked as the world's next big wealth hotspot. The UAE's capital, which recorded a 75 per cent growth rate in its millionaire population over the past decade, is also home to 68 centi-millionaires and five billionaires, according to the report.
Over the past decade, Saudi capital Riyadh recorded a 40 per cent jump in its millionaire population, with 18,200 millionaires, 67 centi-millionaires and eight billionaires calling it home.
The kingdom’s commercial hub Jeddah is home to 7,500 millionaires, 32 centi-millionaires and eight billionaires, the report showed.
Ms Hung, who met Sheikh Maktoum bin Mohammed, Deputy Prime Minister, Minister of Finance and First Deputy Ruler of Dubai, on Tuesday said State Street is open to setting up more offices in the broader region.
“We are keeping an open mind”, but the focus this year remains on existing bases in the UAE, Saudi Arabia and Oman, she said. “As the business continues to grow, we could consider opening up additional offices.”
In terms of the breadth of clients and assets under management, the UAE and Saudi Arabia remain the biggest markets for State Street.
Over the past eight years, there has been a “significant redistribution of wealth”, especially in the regional oil exporting nations. The institutional wealth has also expanded with endowed funds, Mr Laurina said.
Institutional investors that were “predominantly inward looking” and focusing on local markets with internationalised asset allocation have opened a “lot of doors for us to diversify our client base”, he said.
“That's the trend that's continuing and what we're doing now with the growth plan is to add on new segments of clients where we were not necessarily present before, or at least, not strategically.”
In certain locations including in Saudi Arabia, State Street is doubling up efforts as “we think there's a role for us to play not only in terms of managing existing assets here, but also helping to develop the capital markets”, Ms Hung said.
In the US, she expects the higher-for longer interest rate regime to continue but anticipates the US Federal Reserve to start cutting rate this year.
"They are focused on either maintaining rates or cutting but very unlikely to hike rates," she told delegates at the Dubai FinTech Summit in the Dubai.
"In the US, our belief which is somewhat out of consensus, is that the Fed should be positioned to start cutting rates as soon as July and in our view, we think there's room for 75 basis points of cuts and I think a lot of that has to do with really looking underneath the surface.
In terms of global invest themes, State Street remains overweight on equities, cash and gold, despite slowing economic growth.
"I would say longer term, more over the 12- to 24-month period, because of our view on the economy, we would tend more towards quality, both on the equity side as well as on fixed income," Ms Hung said.
"If I focus on the near term, even though the US arguably is trading a little bit higher than the need over time, we still see the strength."
MATCH INFO
Maratha Arabians 107-8 (10 ovs)
Lyth 21, Lynn 20, McClenaghan 20 no
Qalandars 60-4 (10 ovs)
Malan 32 no, McClenaghan 2-9
Maratha Arabians win by 47 runs
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What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
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UAE currency: the story behind the money in your pockets
UAE SQUAD
UAE team
1. Chris Jones-Griffiths 2. Gio Fourie 3. Craig Nutt 4. Daniel Perry 5. Isaac Porter 6. Matt Mills 7. Hamish Anderson 8. Jaen Botes 9. Barry Dwyer 10. Luke Stevenson (captain) 11. Sean Carey 12. Andrew Powell 13. Saki Naisau 14. Thinus Steyn 15. Matt Richards
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16. Lukas Waddington 17. Murray Reason 18. Ahmed Moosa 19. Stephen Ferguson 20. Sean Stevens 21. Ed Armitage 22. Kini Natuna 23. Majid Al Balooshi
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Killing of Qassem Suleimani
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Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
2019 Asian Cup final
Japan v Qatar
Friday, 6pm
Zayed Sports City Stadium, Abu Dhabi
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Killing of Qassem Suleimani
Panipat
Director Ashutosh Gowariker
Produced Ashutosh Gowariker, Rohit Shelatkar, Reliance Entertainment
Cast Arjun Kapoor, Sanjay Dutt, Kriti Sanon, Mohnish Behl, Padmini Kolhapure, Zeenat Aman
Rating 3 /5 stars
Price, base / as tested From Dh173,775 (base model)
Engine 2.0-litre 4cyl turbo, AWD
Power 249hp at 5,500rpm
Torque 365Nm at 1,300-4,500rpm
Gearbox Nine-speed auto
Fuel economy, combined 7.9L/100km
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
Company Fact Box
Company name/date started: Abwaab Technologies / September 2019
Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO
Based: Amman, Jordan
Sector: Education Technology
Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed
Stage: early-stage startup
Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.
Schedule for Asia Cup
Sept 15: Bangladesh v Sri Lanka (Dubai)
Sept 16: Pakistan v Qualifier (Dubai)
Sept 17: Sri Lanka v Afghanistan (Abu Dhabi)
Sept 18: India v Qualifier (Dubai)
Sept 19: India v Pakistan (Dubai)
Sept 20: Bangladesh v Afghanistan (Abu Dhabi) Super Four
Sept 21: Group A Winner v Group B Runner-up (Dubai)
Sept 21: Group B Winner v Group A Runner-up (Abu Dhabi)
Sept 23: Group A Winner v Group A Runner-up (Dubai)
Sept 23: Group B Winner v Group B Runner-up (Abu Dhabi)
Sept 25: Group A Winner v Group B Winner (Dubai)
Sept 26: Group A Runner-up v Group B Runner-up (Abu Dhabi)
Sept 28: Final (Dubai)
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Kandahar%20
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The specs
Engine: 2.0-litre 4-cyl turbo
Power: 201hp at 5,200rpm
Torque: 320Nm at 1,750-4,000rpm
Transmission: 6-speed auto
Fuel consumption: 8.7L/100km
Price: Dh133,900
On sale: now
The Voice of Hind Rajab
Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
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All times UAE ( 4 GMT)
Saturday
West Ham United v Tottenham Hotspur (3.30pm)
Burnley v Huddersfield Town (7pm)
Everton v Bournemouth (7pm)
Manchester City v Crystal Palace (7pm)
Southampton v Manchester United (7pm)
Stoke City v Chelsea (7pm)
Swansea City v Watford (7pm)
Leicester City v Liverpool (8.30pm)
Sunday
Brighton and Hove Albion v Newcastle United (7pm)
Monday
Arsenal v West Bromwich Albion (11pm)
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
UAE currency: the story behind the money in your pockets
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In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
- Production engineer: Dh30,000 to Dh40,000
- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
- Senior reservoir engineer: Dh40,000 to Dh55,000
- Senior drilling engineer: Dh38,000 to Dh46,000
- Senior process engineer: Dh28,000 to Dh38,000
- Senior maintenance engineer: Dh22,000 to Dh34,000
- Field engineer: Dh6,500 to Dh7,500
- Field supervisor: Dh9,000 to Dh12,000
- Field operator: Dh5,000 to Dh7,000
Race card
5pm: Handicap (PA) Dh80,000 (Turf) 1,600m; 5.30pm: Maiden (PA) Dh80,000 (T) 1,400m
6pm: Handicap (PA) Dh80,000 (T) 1,400m; 6.30pm: Handicap (PA) Dh80,000 (T) 1,200m
7pm: Wathba Stallions Cup Handicap (PA) Dh70,000 (T) 2,200m
7.30pm: Handicap (TB) Dh100,000 (PA) 1,400m
Brief scoreline:
Liverpool 2
Mane 51', Salah 53'
Chelsea 0
Man of the Match: Mohamed Salah (Liverpool)
Founders: Ines Mena, Claudia Ribas, Simona Agolini, Nourhan Hassan and Therese Hundt
Date started: January 2017, app launched November 2017
Based: Dubai, UAE
Sector: Private/Retail/Leisure
Number of Employees: 18 employees, including full-time and flexible workers
Funding stage and size: Seed round completed Q4 2019 - $1m raised
Funders: Oman Technology Fund, 500 Startups, Vision Ventures, Seedstars, Mindshift Capital, Delta Partners Ventures, with support from the OQAL Angel Investor Network and UAE Business Angels
Schedule for show courts
Centre Court - from 4pm UAE time
Johanna Konta (6) v Donna Vekic
Andy Murray (1) v Dustin Brown
Rafael Nadal (4) v Donald Young
Court 1 - from 4pm UAE time
Kei Nishikori (9) v Sergiy Stakhovsky
Qiang Wang v Venus Williams (10)
Beatriz Haddad Maia v Simona Halep (2)
Court 2 - from 2.30pm
Heather Watson v Anastasija Sevastova (18)
Jo-Wilfried Tsonga (12) v Simone Bolelli
Florian Mayer v Marin Cilic (7)
