The launch of the new Summary Cases Court, with, Ahmad Al Yassi, director of labour relations at the Department of Human Resources and Emiratisation. Victor Besa / The National 
The launch of the new Summary Cases Court, with, Ahmad Al Yassi, director of labour relations at the Department of Human Resources and Emiratisation. Victor Besa / The National 

For labour disputes, justice will be swift



A fair day’s wage for a fair day’s work is the fundamental understanding upon which the UAE has been built. Now, with the introduction of a fast-track labour disputes court, Abu Dhabi has fired another warning shot across the bows of companies that seek to break that contract by cheating low-paid workers. These people are the backbone of a strong economy. It is their work that has transformed the nation’s dreams into the steel-and-concrete realities of its roads, ports, airports and cities.

They have come here in good faith, to work hard in exchange for the opportunity to build better lives. To cheat them is also to cheat the families and entire communities they have left behind, which are reliant upon the remittances they send home. Laws protecting workers' rights have been in place since the earliest days of the federation and have been constantly updated as the country has grown and evolved. The new Summary Cases Court, which will handle straightforward claims, such as an employer withholding a passport or failing to issue health insurance, follows the introduction a year ago of the One Day Labour Court, which aims to resolve other disputes within hours.

In the past, employment cases could drag on for months. The new reforms discourage bad practice by putting employers on notice that justice and punishment for transgressions will be swift. Abu Dhabi Judicial Department's Labour Court Committee is also working hard to raise awareness of rights and responsibilities among both workers and employers. Last month it announced that vulnerable employees denied wages will be given cards to cover food, transport and other costs until legal disputes are resolved.

Such measures are clearly working. Last year the number of labour disputes brought before Abu Dhabi courts fell from 16,897 cases in 2017 to 9,779. If everyone played by the rules, such courts would not be necessary. But it is hugely encouraging that they are being introduced by a government determined to stamp out practices that are illegal, immoral and harmful to the UAE as a land of fairness and opportunity.

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

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Director: Ruben Fleischer

Stars: Woody Harrelson, Jesse Eisenberg, Emma Stone

Four out of five stars 

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.”

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5