Mubadala and GE move ahead on joint venture



Mubadala Development and General Electric (GE) yesterday appointed chief executives for an US$8 billion (Dh29.38bn) commercial finance joint venture and an executive education centre as part of a partnership in which Mubadala will become one of GE's largest shareholders. The executive teams for the commercial finance and executive education ventures, announced last year, were mostly in place and operations at both should begin this summer, Khaldoon al Mubarak, the chief executive of Mubadala, said yesterday. "The plan is what it was 12 months ago and we are moving swiftly forwards," Mr al Mubarak said. Ron Herman, a 25-year GE veteran, is to lead the commercial finance venture, a funding arm to which GE and Mubadala will each contribute $4bn. Most recently, he was the chief executive of GE Equity, the company's private equity financing unit. "We have a business plan, a team, and we're developing a pipeline and going through a formal regulatory process, and by end of summer we should be moving forward [with the commercial finance unit]," said Jeff Immelt, the chairman and chief executive of GE. Mr al Mubarak said the unit would help fund projects and businesses around the world. "We don't want to box in this joint venture as a UAE joint venture or a Middle East joint venture, and we're going to look at all the opportunities out there." Jeff Barnes, another 25-year GE veteran, was appointed "chief learning officer" of the Abu Dhabi Leadership Development Centre. Mr Barnes has worked in various positions at GE, including on the launch of the GE China Learning Centre in Shanghai. Workshops and education programmes are to begin there next month before relocating within three months to a temporary location on Abu Dhabi island. Within three years, the centre is to move to its permanent home in Mubadala's Masdar City. Mubadala, established in 2002 as an Abu Dhabi government-owned venture capital and investment arm, has expanded rapidly in size and scope since Mr al Mubarak became its chief executive in 2005. Mubadala reported total assets of about Dh54bn at the end of last year, according to a 2008 annual report released in April. It received a total of Dh1.4bn from the government between 2002 and 2005, but this has since expanded to Dh39.2bn. The unnamed commercial finance venture was the cornerstone of the Mubadala-GE partnership announced last July. The tie-up includes joint investments in clean-energy development, aviation maintenance, executive education and finance. In January, Mubadala and GE announced that GE would be the first tenant at Masdar City, an eco-city that Mubadala is building next to the Abu Dhabi International Airport. GE is to build a 4,000 square metre Ecomagination City there to house a centre focused on sustainable technologies. "The world has changed dramatically since we announced this partnership last year," Mr Immelt said. "The fact that everything we committed to in our announcement is on track and proceeding as planned is a testament to the strength of the Mubadala partnership and the soundness of our strategy. "We seek to forge partnerships of strength around the world. Mubadala is the ideal partner." As part of its strategic partnership with GE, Mubadala has said it would buy shares in the company "as market conditions allow", with the aim of becoming one of its top 10 shareholders. Mubadala said recently it had acquired 65.8 million shares, about 0.62 per cent of the company. Mr al Mubarak said yesterday that Mubadala was "continuously monitoring the situation" for attractive opportunities to buy shares. Despite its size, the GE partnership is just one of Mubadala's many large joint ventures and direct investments. It is developing the 105-hectare Sowwah Island north-east of Abu Dhabi City and is partnering a Singapore-based company to develop a large area around the Sheikh Zayed Sports City complex. Mubadala also has a joint venture with Dubai Aluminium called Emirates Aluminium, which will host the world's largest aluminium smelter. And just last week during the visit of Nicolas Sarkozy, the French president, to the UAE, Mubadala announced a partnership with France's Strategic Investment Fund to explore joint investments in France. Also last week, it was said to be in "exploratory talks" with Malaysia's Terengganu Investment Authority about collaborating in oil and gas industry projects, as well as a $1.8bn investment in a major property development in Malaysia. afitch@thenational.ae

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The Breadwinner

Director: Nora Twomey

Starring: Saara Chaudry,  Soma Chhaya,  Laara Sadiq 

Three stars

Biog

Mr Kandhari is legally authorised to conduct marriages in the gurdwara

He has officiated weddings of Sikhs and people of different faiths from Malaysia, Sri Lanka, Russia, the US and Canada

Father of two sons, grandfather of six

Plays golf once a week

Enjoys trying new holiday destinations with his wife and family

Walks for an hour every morning

Completed a Bachelor of Commerce degree in Loyola College, Chennai, India

2019 is a milestone because he completes 50 years in business

 

Managing the separation process

  • Choose your nursery carefully in the first place
  • Relax – and hopefully your child will follow suit
  • Inform the staff in advance of your child’s likes and dislikes.
  • If you need some extra time to talk to the teachers, make an appointment a few days in advance, rather than attempting to chat on your child’s first day
  • The longer you stay, the more upset your child will become. As difficult as it is, walk away. Say a proper goodbye and reassure your child that you will be back
  • Be patient. Your child might love it one day and hate it the next
  • Stick at it. Don’t give up after the first day or week. It takes time for children to settle into a new routine.And, finally, don’t feel guilty.  
The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

Family reunited

Nazanin Zaghari-Ratcliffe was born and raised in Tehran and studied English literature before working as a translator in the relief effort for the Japanese International Co-operation Agency in 2003.

She moved to the International Federation of Red Cross and Red Crescent Societies before moving to the World Health Organisation as a communications officer.

She came to the UK in 2007 after securing a scholarship at London Metropolitan University to study a master's in communication management and met her future husband through mutual friends a month later.

The couple were married in August 2009 in Winchester and their daughter was born in June 2014.

She was held in her native country a year later.

The specs
Engine: 3.0-litre 6-cyl turbo

Power: 374hp at 5,500-6,500rpm

Torque: 500Nm from 1,900-5,000rpm

Transmission: 8-speed auto

Fuel consumption: 8.5L/100km

Price: from Dh285,000

On sale: from January 2022 

Israel Palestine on Swedish TV 1958-1989

Director: Goran Hugo Olsson

Rating: 5/5

COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Dresos%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20September%202020%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Vladimir%20Radojevic%20and%20Aleksandar%20Jankovic%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Fashion%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%24285%2C000%3B%20%24500%2C000%20currently%20being%20raised%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Crowdfunding%2C%20family%2C%20friends%20and%20self-funding%3C%2Fp%3E%0A
Ms Yang's top tips for parents new to the UAE
  1. Join parent networks
  2. Look beyond school fees
  3. Keep an open mind

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.”

My Cat Yugoslavia by Pajtim Statovci
Pushkin Press

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
ETFs explained

Exhchange traded funds are bought and sold like shares, but operate as index-tracking funds, passively following their chosen indices, such as the S&P 500, FTSE 100 and the FTSE All World, plus a vast range of smaller exchanges and commodities, such as gold, silver, copper sugar, coffee and oil.

ETFs have zero upfront fees and annual charges as low as 0.07 per cent a year, which means you get to keep more of your returns, as actively managed funds can charge as much as 1.5 per cent a year.

There are thousands to choose from, with the five biggest providers BlackRock’s iShares range, Vanguard, State Street Global Advisors SPDR ETFs, Deutsche Bank AWM X-trackers and Invesco PowerShares.

COMPANY%20PROFILE
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