Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, has issued a resolution for the performance targets and appraisals of full-time government staff.  
Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, has issued a resolution for the performance targets and appraisals of full-time government staff.  

Government work is an honour and a privilege



The news that from next year government workers in Dubai are to be given performance targets, a motivational tool commonly used to great effect in the private sector, is a sure and welcome sign that this is a task that will not be shirked. Since federation in 1971 the leadership has always sought to attract Emiratis into public service. In the early days, especially, it was a way of giving citizens a direct role in the development of their country, while generous pay and conditions shared the bounty of oil with all. At the same time, overseas workers and companies were brought in to tackle the specialist technical and commercial roles in which Emiratis had little experience or training.

All that has changed. Decades of emphasis on education to the highest level, coupled with initiatives such as this week's Mohamed bin Zayed Majlis for Future Generations, have created a dynamic new breed of Emirati − young men and women capable of taking on anything a rapidly evolving world can throw at them. The trick now is to ensure this priceless resource is deployed in their best interests and those of the nation. It is, of course, vital that the brightest and the best continue to be attracted to government work. But if the UAE is to achieve its aim of being a competitive nation on the global stage it is equally important that young Emiratis accept the diverse challenges – and opportunities – of the commercial world.

Conversations with young Emiratis at this week’s majlis reveal that many are reluctant to trade the advantages of government work, from which many of their parents have benefited, for the perceived risks of life in the private sector. The introduction of performance targets begins the important process of levelling the playing field. The system must, of course, be applied seriously if it is to have the desired effect of raising standards and aligning performance expectations in government departments with those in the corporate world. Other adjustments can, and should, be made – the government is discussing plans to equalise public and private-sector vacation time – but give and take must be expected on both sides.

For the UAE to successfully nurture its new generation of outward-looking, talented Emiratis, working for the government can no longer be seen as the easy option. Dubai’s introduction of performance targets sends a message that is both positive and patriotic: working for your country should not be considered a right, but an honour, to be embraced with enthusiasm, dedication and professionalism.

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.”

The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

Where to buy

Limited-edition art prints of The Sofa Series: Sultani can be acquired from Reem El Mutwalli at www.reemelmutwalli.com

Blue%20Beetle
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Angel%20Manuel%20Soto%3Cbr%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EXolo%20Mariduena%2C%20Adriana%20Barraza%2C%20Damian%20Alcazar%2C%20Raoul%20Max%20Trujillo%2C%20Susan%20Sarandon%2C%20George%20Lopez%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E4%2F5%C2%A0%3C%2Fp%3E%0A
While you're here
Specs

Engine: Dual-motor all-wheel-drive electric

Range: Up to 610km

Power: 905hp

Torque: 985Nm

Price: From Dh439,000

Available: Now