UBS, one of the world’s largest wealth managers, is invested in the economic fundamentals of the Middle East and does not rely on “blue sky” or best-case scenarios to grow its business in the region, its group chief executive has said.
Switzerland’s largest bank, which completed its merger with former rival Credit Suisse in May, is “working on optimising and integrating what we have on the table” to continue its expansion, regardless of spending policy changes in Saudi Arabia or elsewhere in the region, Sergio Ermotti told The National in an interview.
“We are not counting on blue sky scenarios for our growth in this region. We think that there are strong fundamentals supporting growth,” Mr Ermotti said on the sidelines of the Abu Dhabi Finance Week.
UBS is convinced of the region’s ability to continue growth momentum rather than expecting a “spectacular shaping up” driven by steep investments.
Saudi Arabia, Opec’s top oil producer, as well as its peers in the Gulf region are overhauling their economies to cut dependence on hydrocarbon revenues and their economic transformation programmes have opened new avenues of business for global banks such as UBS.
A sharp increase in spending across the Gulf region to fund giga projects such as the $500 billion futurist city of Neom and the Red Sea Global project spanning 28,000 square kilometres in Saudi Arabia, has also boosted the deals and advisory market for banks.
While Saudi Arabia is already halfway through its Vision 2030 programme, the kingdom’s Finance Minister Mohammed Al Jadaan in April said it would “downscale” or “accelerate” some of the projects being carried out under the diversification plan to adapt to current economic and geopolitical challenges.
Mr Ermotti said UBS remains focused on optimising “what we have inherited through the UBS and Credit Suisse integration” in the kingdom.
Growth trajectory
The Swiss bank, which has operated in the Middle East for more than six decades, has maintained about mid to single digit growth regionally in the past few years.
Mr Ermotti sees the potential of boosting the pace of growth significantly. “We do expect we can grow … pretty much double than that,” he said.
“Within the next five years, we can, and we should grow at the upper end of the single digit, if not in low double digits,” driven by accelerated wealth creation in the region as well as the trend of migration of affluent population to the region, he added.
In the past few years, international financial institutions, and global asset managers have either expanded their operations or have set up new offices in the Gulf region to grab more business from sovereign wealth funds, family offices, ultra-high-net-worth individuals and large institutional clients.
The sustained momentum in regional initial public offerings and a robust rise in debt capital market activity have also necessitated expansion in investment banking operations.
Globally, UBS manages $4.2 trillion of private client assets, including $2 trillion in the US, in addition to $1.7 trillion in institutional assets. Asia, Europe and Switzerland are about the same size – combined – as the US, and “by definition, this [the Middle East] subset of the European region is definitely not at that kind of level, but the trajectory [of growth] is the one that counts”, Mr Ermotti said.
“If you look at in terms of wealth management assets in this region, there is around $5 trillion [and] that are growing faster than the asset base of the European counterparts,” he said. “It's a very important market for us.”
The Middle East is also important for UBS in terms of Asia, which is the new growth corridor and includes fast-expanding markets such as India. The Swiss bank can help clients diversify their investments in those markets, he added.
Middle East wealth creation
While the underlying factors for wealth creation have changed in the region over the years, the traditional energy sector will “continue to play a very big role” in the foreseeable future. The region is also investing in innovation as well as the renewables sector, which is a “very promising fundamental strength” for markets here, Mr Ermotti said.
From a geopolitical standpoint, parts of the region, including the Gulf remain stable and are important for UBS clients that are looking to diversify their investment portfolios.
“Around 6,700 people, very wealthy people, coming to the UAE [between] 2020 and 2024 is huge. It is the fifth-largest inbound population [movement] … so you can see how this plays well into the geopolitical dimension,” Mr Ermotti said.
Affluent people are moving to the region because “they feel safe, they feel they have predictable regulation, stable political regimes, they see innovation, they see interconnectedness and they see the infrastructure”, he said. “In this complex world, I think that the Middle East, or part of the Middle East, can play a pretty good role.”
Earlier this month, UBS said the Mena region has attracted the most billionaire wealth globally since Covid-19 as the uber-rich move to countries that offer premium health care, education, safety and ease of doing business.
The aggregate wealth of UAE billionaires’ alone rose by 39.5 per cent annually to $138.7 billion this year, with the number of billionaires growing by one to 18, UBS’s Billionaire Ambitions report found.
Since 2020, billionaires globally have been relocating more frequently, with 176 having moved to countries out of a total population of 2,682. Billionaires accounting for more than $400 billion in wealth have emigrated in four years, the report showed.
Regional expansion
UBS has about 600 people in the region, including 200 based in Dubai, the bank’s biggest Mena market.
Abu Dhabi is also playing a “very complementary role to Dubai”, with the continued influx of wealthy people and increasing flow of capital to the emirate, home to ADGM, one of the fastest-growing financial hubs in the region.
For UBS, “we need to think about ways to leverage more of our franchise locally here and maybe even leveraging on the ADGM framework and see what else can be done” he said. “The rest of the businesses, I mean, we are already active here with our asset management and investment banking, so we don't need to do much more.”
UBS strengthened its wealth management team with 10 new hires in June, including former HSBC executive Rana Al Emam, who is tasked with growing the bank’s business in Abu Dhabi.
It has also hired Bassel Al Zaouk, who joined from Deutsche Bank to build out the domestic wealth business in Saudi Arabia, while Ali Khunji joined the Swiss bank from HSBC to focus on growing the wealth business in Bahrain and the Eastern Province of Saudi Arabia.
“We see across the board – being in Saudi, but also in UAE, in Qatar and Bahrain – room for growth,” he said.
Credit Suisse integration
UBS, which is a full-service commercial bank in Switzerland, is a wealth and asset management specialist in the rest of the global markets and also offers its clients investment banking services.
It is well on its way to integrate Credit Suisse in its folds and has begun moving clients to its own platforms, which Mr Ermotti said is a huge exercise involving more than a million clients and UBS wants to avoid all “unwarranted risks” in the process.
“I'm very pleased with the fact that we had a good migration in clients – in Luxembourg, in Singapore and in Hong Kong. We're going to do it before year end in Japan and then next year is the big migration,” he said. “We should be completed by the beginning of 2026.”
By coming together, the two Swiss banks have achieved critical mass and created a more diversified business, although UBS was quite large as a bank before the merger.
“In essence, it is an acceleration of organic growth so if I look in terms of assets and capabilities, is like seven years of organic growth in one go.”
In October, UBS Group posted its third-quarter profit that beat forecasts, as revenue rose and cost fell amid the continued client migrations.
Net profit attributable to shareholders for the three months to the end of the September rose to $1.4 billion, nearly double the $740 million estimated by analysts. Revenue for the period rose to $12.3 billion, beating the $11.5 billion estimate.
The merger has not only added size and scale and boosted growth, but it has also given UBS a competitive advantage in many geographies, including the Middle East.
“When I come to this part of the world, you look at our operation in almost every country of the region, the two together are much stronger,” he said.
The bank is currently going through resource optimisation and integration of Credit Suisse business and clients into the UBS fold in the region, which helps in bringing “a more complementary offering to our clients” and adds more value to what UBS brings to the table, he added.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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Killing of Qassem Suleimani
Mohammed bin Zayed Majlis
Killing of Qassem Suleimani
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.
Why does a queen bee feast only on royal jelly?
Some facts about bees:
The queen bee eats only royal jelly, an extraordinary food created by worker bees so she lives much longer
The life cycle of a worker bee is from 40-60 days
A queen bee lives for 3-5 years
This allows her to lay millions of eggs and allows the continuity of the bee colony
About 20,000 honey bees and one queen populate each hive
Honey is packed with vital vitamins, minerals, enzymes, water and anti-oxidants.
Apart from honey, five other products are royal jelly, the special food bees feed their queen
Pollen is their protein source, a super food that is nutritious, rich in amino acids
Beewax is used to construct the combs. Due to its anti-fungal, anti-bacterial elements, it is used in skin treatments
Propolis, a resin-like material produced by bees is used to make hives. It has natural antibiotic qualities so works to sterilize hive, protects from disease, keeps their home free from germs. Also used to treat sores, infection, warts
Bee venom is used by bees to protect themselves. Has anti-inflammatory properties, sometimes used to relieve conditions such as rheumatoid arthritis, nerve and muscle pain
Honey, royal jelly, pollen have health enhancing qualities
The other three products are used for therapeutic purposes
Is beekeeping dangerous?
As long as you deal with bees gently, you will be safe, says Mohammed Al Najeh, who has worked with bees since he was a boy.
“The biggest mistake people make is they panic when they see a bee. They are small but smart creatures. If you move your hand quickly to hit the bees, this is an aggressive action and bees will defend themselves. They can sense the adrenalin in our body. But if we are calm, they are move away.”
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
Specs
Engine: 51.5kW electric motor
Range: 400km
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Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
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What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EKinetic%207%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202018%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Rick%20Parish%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Abu%20Dhabi%2C%20UAE%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Clean%20cooking%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%2410%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Self-funded%3C%2Fp%3E%0A
JAPAN SQUAD
Goalkeepers: Masaaki Higashiguchi, Shuichi Gonda, Daniel Schmidt
Defenders: Yuto Nagatomo, Tomoaki Makino, Maya Yoshida, Sho Sasaki, Hiroki Sakai, Sei Muroya, Genta Miura, Takehiro Tomiyasu
Midfielders: Toshihiro Aoyama, Genki Haraguchi, Gaku Shibasaki, Wataru Endo, Junya Ito, Shoya Nakajima, Takumi Minamino, Hidemasa Morita, Ritsu Doan
Forwards: Yuya Osako, Takuma Asano, Koya Kitagawa
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
Profile of RentSher
Started: October 2015 in India, November 2016 in UAE
Founders: Harsh Dhand; Vaibhav and Purvashi Doshi
Based: Bangalore, India and Dubai, UAE
Sector: Online rental marketplace
Size: 40 employees
Investment: $2 million
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
LIVING IN...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
SPECS
Nissan 370z Nismo
Engine: 3.7-litre V6
Transmission: seven-speed automatic
Power: 363hp
Torque: 560Nm
Price: Dh184,500
UAE currency: the story behind the money in your pockets
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
India Test squad
Virat Kohli (c), Mayank Agarwal, Rohit Sharma, Cheteshwar Pujara, Ajinkya Rahane, Hanuma Vihari, Rishabh Pant (wk), Wriddhiman Saha (wk), Ravichandran Ashwin, Ravindra Jadeja, Kuldeep Yadav, Mohammed Shami, Umesh Yadav, Ishant Sharma, Shubman Gill
What are the influencer academy modules?
- Mastery of audio-visual content creation.
- Cinematography, shots and movement.
- All aspects of post-production.
- Emerging technologies and VFX with AI and CGI.
- Understanding of marketing objectives and audience engagement.
- Tourism industry knowledge.
- Professional ethics.
A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
The biog
First Job: Abu Dhabi Department of Petroleum in 1974
Current role: Chairperson of Al Maskari Holding since 2008
Career high: Regularly cited on Forbes list of 100 most powerful Arab Businesswomen
Achievement: Helped establish Al Maskari Medical Centre in 1969 in Abu Dhabi’s Western Region
Future plan: Will now concentrate on her charitable work
The%20US%20Congress%20explained
%3Cp%3E-%20Congress%20is%20one%20of%20three%20branches%20of%20the%20US%20government%2C%20and%20the%20one%20that%20creates%20the%20nation's%20federal%20laws%3C%2Fp%3E%0A%3Cp%3E-%20Congress%20is%20divided%20into%20two%20chambers%3A%20The%20House%20of%20Representatives%20and%20the%20Senate%3C%2Fp%3E%0A%3Cp%3E-%C2%A0The%20House%20is%20made%20up%20of%20435%20members%20based%20on%20a%20state's%20population.%20House%20members%20are%20up%20for%20election%20every%20two%20years%3C%2Fp%3E%0A%3Cp%3E-%20A%20bill%20must%20be%20approved%20by%20both%20the%20House%20and%20Senate%20before%20it%20goes%20to%20the%20president's%20desk%20for%20signature%3C%2Fp%3E%0A%3Cp%3E-%20A%20political%20party%20needs%20218%20seats%20to%20be%20in%20control%20of%20the%20House%20of%20Representatives%3C%2Fp%3E%0A%3Cp%3E-%20The%20Senate%20is%20comprised%20of%20100%20members%2C%20with%20each%20state%20receiving%20two%20senators.%20Senate%20members%20serve%20six-year%20terms%3C%2Fp%3E%0A%3Cp%3E-%20A%20political%20party%20needs%2051%20seats%20to%20control%20the%20Senate.%20In%20the%20case%20of%20a%2050-50%20tie%2C%20the%20party%20of%20the%20president%20controls%20the%20Senate%3C%2Fp%3E%0A
Killing of Qassem Suleimani
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
