Editorial

Abandoned wives should be aware of rights

Women in limbo between marriage and divorce must get the support that is available to them

National Editorial

January 19, 2014

The plight of abandoned wives will be brought into focus during this week's Federal National Council meeting at a question-and-answer session with the Minister of Social Affairs, Mariam Al Roumi. FNC member Musabeh Al Kitbi has said he will use scheduled discussions about the proposed child rights law to call for an investigation into a rise in the number of cases where women have been abandoned by their husbands and are facing reduced circumstances.

While there are no accurate figures on the incidence of abandonment within marriage, it is likely that the number has been underestimated in some areas due to the social stigma that can be associated with the problem. Mr Al Kitbi is correct in saying that women in this situation are in a legal “limbo”, neither married nor divorced. At the least, they need to know what government assistance is available to them and how they can access it.

Even though the problem is not always of their own making, abandoned women may feel ashamed by their circumstances and reluctant to seek help. Family counsellors and dispute arbitrators are available, and women should feel comfortable seeking this help. Abandoned women are also entitled to benefits, currently set at just over Dh3,000 per month, which Mr Al Kitbi would like to see raised to Dh4,000 to bring it into line with the allowance available to divorcees.

It is not just a matter of financial compensation, however. Women who have been abandoned by their husbands have the right to legal resolution. As Mr Al Kitbi suggests, it may be that errant husbands have to be counselled towards reconciling with their wives or to be forced to seek a divorce through the proper legal channels. But women, too, must know that they can take divorce action in these circumstances. There is no shame in doing so, and there should be no impediment in regard to cost, duration of the proceedings or effort involved. In a divorce action, the parties are entitled to full anonymity, so there need be no fear of public humiliation.

In a society that values and supports family life, divorce should be the last recourse. But when women find themselves abandoned, cut off from the financial, practical and moral support that they should expect from their husbands, they must be confident that the nation’s legal system is there to protect them and their children.

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.”

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