A few cabinets around the world have been reshuffled in the wake of the coronavirus pandemic. But none had fundamentally restructured to harness the power of the new digital economy. None that was, until Sheikh Mohammed bin Rashid, Prime Minister and Ruler of Dubai, announced a new cabinet structure at the start of July.
It would be easy to view this move in the light of the havoc wreaked by Covid-19. Easy, but not right. This restructure is not simply attributable to the pandemic. Rather, it is the result of years of forward-planning and ingraining an agile, digital-first approach to governance.
I have lived and worked in the UAE for over 17 years now, first moving out here after a decade of working with the World Bank. I have seen this ability to adapt and adopt become a familiar trait of the Emirates’ continued success. Though the conditions and landscape have evolved, the ability to come through a crisis with a forward-looking strategy has remained a constant.
Suhail Al Mazrouei, the current Minister of Energy, who oversees oil production among other areas, was made Minister of Energy and Infrastructure. The Ministry of Infrastructure was merged into his new department. Victor Besa / The National
Noura Al Kaabi was made Minister of Culture and Youth, with Shamma Al Mazrui serving as Minister of State for Youth. Courtesy: Ministry of Culture and Youth
Dr Sultan Al Jaber was made Minister of Industry and Advanced Technology. He was a Minister of State in the previous Cabinet. Victor Besa / The National
Dr Thani Al Zeyoudi was made Minister of State for Foreign Trade, and is one of three ministers to serve in the Ministry of Economy. He was Minister of Environment in the previous Cabinet. Victor Besa/The National
Ahmad Al Falasi was made Minister of State for Business and SMEs, serving in the Ministry of Economy. He was previously Minister of Higher Education and Advanced Skills, which is responsible for universities and other training centres. Courtesy: Dubai Media Office
Sarah Al Amiri was made as President of the UAE Space Agency. Ms Al Amiri, who was Minister of State for Advanced Sciences in the previous Cabinet, is a computer science graduate who worked on satellites before entering government. She steps into the job as the country prepares to launch the Mars Hope space probe on July 15
Saeed Al Attar was appointed head of all government communications. He was previously director general of the Office of Public Diplomacy
Mohamed Hamad Al Kuwaiti was made head of cyber security. He was previously executive director of the National Electronic Security Authority
Huda Al Hashimi was appointed as head of government strategy and innovation. She has worked in the Prime Minister’s Office and the Ministry of Cabinet Affairs and The Future, planning and executing major projects including UAE Vision 2021
Abdullah Al Nuaimi was made Minister of Climate Change and Environment, with special focus on working with farmers to boost local food production. He is a mechanical engineer by training, with a degree from University of Wisconsin–Madison, and was Minister of Infrastructure Development between 2013 and 2020
Shamma Al Mazrui, one of the youngest members of the Cabinet, will serve as Minister of State for Youth in the Ministry of Culture and Youth
Ahmed Majed Al Badawi was made Assistant Secretary-General to the Cabinet
Mohammed Sultan Al Obaidly was made Head of Legal Affairs in the UAE Government. He served as Assistant Secretary General to the Cabinet since 2007, after briefing working as a private lawyer in Dubai. He began his career at the Ministry of Labour in 1988, resolving disputes and labour complaints
Hamad Al Mansoori was made Head of Digital Government. He was previously head of the telecoms regulator TRA
Ahmed Juma Al Zaabi was reconfirmed as Minister of the Federal Supreme Council at the Ministry of Presidential Affairs
Sheikh Nahyan bin Mubarak was reconfirmed as Minister of Tolerance
It is no coincidence that the UAE has been able to make big, effective changes to its workflow – ahead of many private sector organisations – in a matter of months, where other governments would have taken years: it was ready. You cannot become resilient overnight, a point which many struggling private sector companies can testify to right now. The UAE government has been able to respond swiftly and comprehensively to the challenges posed by Covid-19 because it has been implementing smart, e-measures for more than a decade.
Perhaps somewhat of an outlier for the region, the UAE is a technocratic government that values a meritocratic approach, empowering young leaders and women who have taken on the mantle of responsible governance with aplomb. With an average age of under 40, the UAE Cabinet is one of the youngest, as well as most technologically adept, in the Middle East. And at times of great disruption like we face now, digital-first is going to be crucial in moving with the times.
There is now a special focus on the new digital economy in the Cabinet and ministry mix – by having three ministers focusing on specific facets of economics and trade.
It sends out a reassuring message to all business and investment sectors that the UAE remains focused on pioneering ease of doing business in the region
And as the pandemic demanded social distancing and an almost overnight WFH culture, a new portfolio under the Ministry of Digital Economy, Artificial Intelligence and Remote Work Applications, indicates that changes to the UAE’s working structure will not be a temporary measure, but part of an adapted longer-term strategy that keeps people healthy and productive.
One immediate bold move in this area will see the closure of half the extant government service centres, which will be converted into digital platforms within the next two years to improve efficiencies across the board.
Huawei is one of the main players active in the countrywide roll-out of 5G in the UAE. Reuters
It sends out a reassuring message to all business and investment sectors that the UAE remains focused on pioneering ease of doing business in the region. It is part of the same philosophy that sees the UAE ranked first in the Arab region, and fourth globally in launching and deploying 5G networks, according to "The Connectivity Index" issued by Carphone Warehouse, which specialises in technology and connectivity comparisons.
These moves to grasp the new economic order as it arrives shows a government in tune with the outside world, knowing what the private sector needs to thrive in the new digital economy, and laying the foundations to provide it, from the top down.
These are changes, yes. But it is not a U-turn. The strategy remains the same: transitioning towards a knowledge-based economy supported by the underlying principle of innovation.
What happens at the top level of decision-making will filter down and seep into the fabric of the industries and organisations that will be key to accelerating the UAE’s and the region’s economic recovery. The message is clear – it is a digital world now, adjust or become obsolete. Big business must now follow the example set by the government.
The launch of Mohamed bin Zayed University of Artificial intelligence. Chris Whiteoak / The National
Take communications as an example. With over 90 per cent of all UAE residents active on social media, we are now digital-first, driven by a mix of young digital native professionals, or we are nowhere at all.
The point is further highlighted when we look at data from McKinsey, which shows that 44 per cent of companies have managed to reduce their operational costs and increase revenue by implementing AI and other cornerstone digital practices into their marketing work streams, during the pandemic.
Those who had the agility and digital infrastructure to deal with the "new world disorder", as The Economist has termed this year of great change, have emerged on the other side – changed, but emerged, and now ready to take on the new digital economy.
Mamoon Sbeih is president of APCO Worldwide Mena
Key findings of Jenkins report
Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
Things Heard & Seen
Directed by: Shari Springer Berman, Robert Pulcini
Bogleheads follow simple investing philosophies to build their wealth and live better lives. Just follow these steps.
• Spend less than you earn and save the rest. You can do this by earning more, or being frugal. Better still, do both.
• Invest early, invest often. It takes time to grow your wealth on the stock market. The sooner you begin, the better.
• Choose the right level of risk. Don't gamble by investing in get-rich-quick schemes or high-risk plays. Don't play it too safe, either, by leaving long-term savings in cash.
• Diversify. Do not keep all your eggs in one basket. Spread your money between different companies, sectors, markets and asset classes such as bonds and property.
• Keep charges low. The biggest drag on investment performance is all the charges you pay to advisers and active fund managers.
• Keep it simple. Complexity is your enemy. You can build a balanced, diversified portfolio with just a handful of ETFs.
• Forget timing the market. Nobody knows where share prices will go next, so don't try to second-guess them.
• Stick with it. Do not sell up in a market crash. Use the opportunity to invest more at the lower price.
UAE currency: the story behind the money in your pockets
“Join in with a group like Cycle Safe Dubai or TrainYAS, where you’ll meet like-minded people and always have support on hand.”
Stewart Howison, co-founder of Cycle Safe Dubai and owner of Revolution Cycles
“When you sweat a lot, you lose a lot of salt and other electrolytes from your body. If your electrolytes drop enough, you will be at risk of cramping. To prevent salt deficiency, simply add an electrolyte mix to your water.”
Cornelia Gloor, head of RAK Hospital’s Rehabilitation and Physiotherapy Centre
“Don’t make the mistake of thinking you can ride as fast or as far during the summer as you do in cooler weather. The heat will make you expend more energy to maintain a speed that might normally be comfortable, so pace yourself when riding during the hotter parts of the day.”
Chandrashekar Nandi, physiotherapist at Burjeel Hospital in Dubai
Dr Afridi's warning signs of digital addiction
Spending an excessive amount of time on the phone.
Neglecting personal, social, or academic responsibilities.
Losing interest in other activities or hobbies that were once enjoyed.
Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.
Experiencing sleep disturbances or changes in sleep patterns.
What are the guidelines?
Under 18 months: Avoid screen time altogether, except for video chatting with family.
Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.
Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.
Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.
Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.
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.”
