Editorial

Cosmetic surgery is not just skin deep

Cosmetic surgery is becoming more common, and gaining rapidly among men. Is this altogether a good thing?

National Editorial

December 16, 2012

When Kirsten Miller decided to have a cosmetic procedure, she had no idea what she was in for. The story, reported in The National last year, tells how Ms Miller believed she was commissioning a simple procedure, a semi-permanent eyeliner tattoo, which would save her time and make-up expenses.

Instead she was left with unsightly blotches and uneven lines on her face - and traumatised by the botched surgery.

Many similar cases are reported to health authorities in the UAE every year. In a medical field that is growing rapidly, as The National reports today, there are alarming numbers of botched surgeries, unregistered practitioners and flawed practices.

Cosmetic surgery can have life-changing beneficial effects - the story today of Ali Al Zubaidi, who has had several weight-loss related procedures, demonstrates the point.

But in other cases, the psychological effect of these surgeries can be very negative. Even when cosmetic surgery is successful, psychiatrists suggest that appearance-related anxiety is not always resolved. In many cases, a surgery can make the situation worse, especially for people who suffer from body dysmorphic disorder, in which they are obsessed with imagined or very slight physical flaws.

Some statistics indicate that cosmetic surgery may have doubled in Dubai in a single year. Regardless of the exact numbers, there is no doubt that the trend, especially among men, is on the rise. Nearly a quarter of clients at the American Academy for Cosmetic Surgery Hospital are male, compared to just 10 per cent in 2008.

Many plastic surgeries centres, especially private clinics, do not require a psychological assessment before a cosmetic procedure. And if assessments are offered, many clients forego them - plastic surgeons themselves are raising this as a concern. Studies shows that being mentally prepared is as important as being physically fit. It's essential to evaluate a patient's psychological condition before proceeding to the operation room.

And most importantly, people should keep in mind that their health is far more important than anything else. In a beauty-obsessed society, the words of the Lebanese-American poet Khalil Gibran ring even more true: "Beauty is not in the face; beauty is a light in the heart."

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.”