Omar Al-Ubaydli is a Bahraini economist and a columnist for The National
May 14, 2024
Several Gulf countries, most notably Bahrain and the UAE, are evolving national identities that emphasise religious tolerance. Some observers will naturally interpret this as an attempt to de-escalate the region’s religious-based violence. However, a deeper examination of the impact of religion reveals an economic benefit to developing more tolerant societies.
It has become fashionable for many modern secularists to demonise religion as being a major barrier to peace. When they learn someone is devout, it often wrongly conjures up images of extreme confessional intolerance, such as the Spanish Inquisition torturing suspected heretics based on flimsy evidence. It is perhaps not a surprise, then, that the significant role religion plays in daily life in Gulf countries – including the political and legal systems – occasionally draws antipathy and hysterically negative media coverage in the West.
Thoroughly investigating the role religion has played in human societies, however, yields a much more complex view. In all human societies, a fundamental problem is how to encourage pro-social behaviour, such as respecting property rights and refraining from marital infidelity, when there isn’t someone monitoring people’s actions. Religious beliefs that reward righteousness and punish deviant behaviour can help overcome this problem, as adherents will fear divine retribution should they behave in an anti-social manner. From the perspective of many 21st-century people who are religious, a lack of belief may breed nihilism of the kind that could encourage destructive acts that are all too common on social media today, such as bullying, narcissism, greed and so on.
About 65,000 people turned out at the BAPS Hindu Mandir temple in Abu Dhabi on March 3, the first Sunday it was open. All photos: Pawan Singh / The National
The temple was inaugurated by Indian Prime Minister Narendra Modi in February
Now, 30,000 people on average visit the complex every Sunday with weekend waiting times of up to 90 minutes
When the Baps Hindu temple formally opened on February 14, people began queuing almost immediately
Hindus also expected to converge in large numbers to celebrate the Ram Navami and Hanuman Jayanti festivals
Elaborate carvings of deities are an integral part of the temple
Temple officials are bracing for high numbers of visitors while maintaining a festive atmosphere
The Baps Hindu Mandir, in the Abu Mureikha area off Sheikh Zayed Road, is open to people of all faiths
Abu Dhabi’s first Hindu temple is gearing up to welcome tens of thousands of people for several festivals this month
April is a packed month in the Hindu calendar with celebrations centred around Hindu new year and the spring season
Beyond their direct human costs, violence and distrust of others have a large, negative economic effect, too
Along these lines, religion’s positive impact on pro-social behaviour allows societies to scale up significantly, going from roving bands of a dozen people (like those you might see in the Mad Max films) to modern cities with much higher levels of mutual trust. This opens the door to the economic benefits associated with specialisation and division of labour.
As societies mature, religion also confers economic benefits by providing a foundation for the concept of rule of law, which is often defined as senior officials being subject to the same legal restrictions as ordinary people. This happens because religious scriptures are – by definition – above all humans, and so everyone, regardless of social status or power, must respect their prescriptions. Since many religiously based rules relate to good governance, such as banning theft and murder, placing these constraints on the people that wield the most power in society yields significant economic benefits.
For Muslims, this is best illustrated by the righteous leadership of the first four Caliphs, Abu Bakr, Umar, Uthman and Ali, all of whom were extremely conscious of the need to respect the same laws that ordinary Muslims had to abide by. The result was a large boost to Muslims’ collective military and economic power compared to some of their contemporary rivals, for whom corruption and arbitrary, unconstrained rule severely undermined the quality of their public administration.
Of course, religion does not have a universally positive effect on economic performance. It can often generate an in-group bias, with the followers of a religion sometimes tacitly – or even explicitly – being instructed to mistreat non-followers. While religion is definitely not the only reason European colonisers felt free to behave genocidally in the Americas during the 16th and 17th centuries, the belief that the innocent natives they were slaughtering were heathens bound for Hell certainly helped overcome any intrinsic inhibitions against engaging in mass slaughter. Similarly, Northern Ireland has suffered many difficulties over the past five centuries due to religious-based violence, and the salience of religion continues to breed mistrust between neighbours, colleagues, teammates and so on.
Beyond their direct human costs, violence and distrust of others have a large, negative economic effect, too. People start allocating resources away from education and health towards weapons and fighting. Societies that religiously Balkanise unwind the benefits that come from scale, such as the division of labour, as occurred in the former Yugoslavia. When general trust in the community declines as people become wary of followers of other religions, the burden on the legal system rises, as people start to demand longer and more complicated contracts to protect their interests. In-group bias also undermines the establishment of meritocratic norms in businesses and government organisations as people start hiring and promoting based on religious affiliation, leading to inferior commercial performance and lower-quality public administration.
It is with half an eye on these costs of religious conflict that Gulf countries have started to nurture higher levels of tolerance in their own societies. They are aware that religion can really help the economy through its encouragement of pro-social behaviour. Moreover, they are keenly aware of the way some western societies are disintegrating as a direct result of their rejection of religion, and the associated economic damage taking the form of crime, broken families and pervasively hedonistic behaviour.
Thus, countries such as the UAE and Bahrain are trying to reform religion’s traditional role to reap its benefits without incurring its costs. They want their residents to behave righteously, but they also want them to refrain from the historical tendency to fight with people from other religious groups. Encouraging tolerance and peaceful co-existence works towards that end.
Secularists who scoff at the idea of religion being a force for good would do well to remember that the two most destructive ideologies in world history – communism and Nazism – were intensely anti-religious. However, harnessing the benefits of religion – including the considerable economic gains available – requires taming of the tendency for followers of one religion to exclude and work against non-followers. Teaching children to be tolerant helps defuse that bomb, engendering pious behaviour channelled towards lives that are more productive spiritually, socially and economically.
Company profile
Name: One Good Thing
Founders: Bridgett Lau and Micheal Cooke
Based in: Dubai
Sector: e-commerce
Size: 5 employees
Stage: Looking for seed funding
Investors: Self-funded and seeking external investors
Fixtures
Sunday January 5 - Oman v UAE
Monday January 6 - UAE v Namibia
Wednesday January 8 - Oman v Namibia
Thursday January 9 - Oman v UAE
Saturday January 11 - UAE v Namibia
Sunday January 12 – Oman v Namibia
UAE squad
Ahmed Raza (captain), Rohan Mustafa, Mohammed Usman, CP Rizwan, Waheed Ahmed, Zawar Farid, Darius D’Silva, Karthik Meiyappan, Jonathan Figy, Vriitya Aravind, Zahoor Khan, Junaid Siddique, Basil Hameed, Chirag Suri
How to apply for a drone permit
Individuals must register on UAE Drone app or website using their UAE Pass
Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
Upload the training certificate from a centre accredited by the GCAA
Submit their request
What are the regulations?
Fly it within visual line of sight
Never over populated areas
Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
Users must avoid flying over restricted areas listed on the UAE Drone app
Only fly the drone during the day, and never at night
White hydrogen: Naturally occurring hydrogen Chromite: Hard, metallic mineral containing iron oxide and chromium oxide Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
Wicked
Director: Jon M Chu
Stars: Cynthia Erivo, Ariana Grande, Jonathan Bailey
5pm: UAE Martyrs Cup (TB) Conditions; Dh90,000; 2,200m 5.30pm: Wathba Stallions Cup (PA) Handicap; Dh70,000; 1,400m 6pm: UAE Matyrs Trophy (PA) Maiden; Dh80,000; 1,600m 6.30pm: Sheikha Fatima bint Mubarak (IFAHR) Apprentice Championship (PA) Prestige; Dh100,000; 1,600m 7pm: Sheikha Fatima bint Mubarak (IFAHR) Ladies World Championship (PA) Prestige; Dh125,000; 1,600m 8pm: Sheikh Zayed bin Sultan Al Nahyan Jewel Crown (PA) Group 1; Dh5,000,000; 1,600m
The bio
Favourite vegetable: Broccoli
Favourite food: Seafood
Favourite thing to cook: Duck l'orange
Favourite book: Give and Take by Adam Grant, one of his professors at University of Pennsylvania
Favourite place to travel: Home in Kuwait.
Favourite place in the UAE: Al Qudra lakes
Manchester United v Club America
When: Thursday, 9pm Arizona time (Friday UAE, 8am)
The Pope's itinerary
Sunday, February 3, 2019 - Rome to Abu Dhabi
1pm: departure by plane from Rome / Fiumicino to Abu Dhabi
10pm: arrival at Abu Dhabi Presidential Airport
Monday, February 4
12pm: welcome ceremony at the main entrance of the Presidential Palace
12.20pm: visit Abu Dhabi Crown Prince at Presidential Palace
5pm: private meeting with Muslim Council of Elders at Sheikh Zayed Grand Mosque
6.10pm: Inter-religious in the Founder's Memorial
Tuesday, February 5 - Abu Dhabi to Rome
9.15am: private visit to undisclosed cathedral
10.30am: public mass at Zayed Sports City – with a homily by Pope Francis
12.40pm: farewell at Abu Dhabi Presidential Airport
1pm: departure by plane to Rome
5pm: arrival at the Rome / Ciampino International Airport
Should late investors consider cryptocurrencies?
Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.
They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.
“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.
He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
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.”
Price: Dh4,699 for 128GB, Dh5,099 for 256GB, Dh5,499 for 512GB; 1TB unavailable in the UAE
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
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.
UAE currency: the story behind the money in your pockets
Red Jersey
General Classification: worn daily, starting from Stage 2, by the leader of the General Classification by time. Green Jersey
Points Classification: worn daily, starting from Stage 2, by the fastest sprinter, who has obtained the best positions in each stage and intermediate sprints. White Jersey
Young Rider Classification: worn daily, starting from Stage 2, by the best young rider born after January 1, 1995 in the overall classification by time (U25). Black Jersey
Intermediate Sprint Classification: worn daily, starting from Stage 2, by the rider who has gained the most Intermediate Sprint Points.
