The Burj Khalifa, like the Expo 2020 opening in Dubai in around 900 days, shows how far the UAE has come. Satish Kumar / The National
The Burj Khalifa, like the Expo 2020 opening in Dubai in around 900 days, shows how far the UAE has come. Satish Kumar / The National

Editorial

The groundwork for a long-lasting expo legacy has already begun

The energy, optimism and cultural exchanges of Expo 2020 Dubai will inspire and unite countries

National Editorial

April 30, 2018

When Queen Victoria's consort Prince Albert organised the Great Exhibition in 1851, the aim was "gathering together into one place the best specimens of contemporary art and skill". Since then the world has witnessed more than 75 expositions, from Seattle to Madrid, Antwerp to Paris, each celebrating the very best of the innovation, design, industry, art and culture of its time. Among the recent inventions showcased and drawing crowds were the typewriter in Philadelphia in 1876, the diesel engine in Paris in 1900 and the colour television in New York in 1964. At Expo 2020 Dubai – now just over 900 days away – it could be flying cars and a showcase of the mission to Mars.

This week Luxembourg became the first country to begin erecting its pavilion. The nation was, symbolically, behind the steel and coated glass used to construct the Burj Khalifa, where fireworks were set off in 2013 when Dubai first won the bid to host the global event. "We renew our promise to astonish the world in 2020," said Sheikh Mohammed bin Rashid, Prime Minister and Ruler of Dubai, at the time. Work underway at the site, which will include a 65-metre-high dome with a capacity to host 10,000 people, is already giving shape to that vow. But the importance of Expo 2020 Dubai transcends its structure. This is the first world expo in the Middle East and speaks volumes about how far the UAE has come. For those in this region, the extravaganza will be a window to the world. And for the millions who travel to Dubai, it will be a window onto the very best the Arab world has to offer.

Sheikh Zayed built this country on the values of tolerance and co-operation. Expo 2020 Dubai, which will feature 180 countries, 30,000 volunteers and 25 million visitors, is a tangible realisation of that vision. As the 4,000-year-old relic that inspired the expo's logo demonstrates, the UAE has long been a meeting point for civilisations. In an often divided region, the energy, optimism and cultural exchanges of Expo 2020 Dubai will inspire and unite countries, with a legacy that will last for years.

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

Nepotism is the name of the game

Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad.