Russian President Vladimir Putin is received by Sheikh Mohamed bin Zayed during an official welcoming in Abu Dhabi. AFP
Russian President Vladimir Putin is received by Sheikh Mohamed bin Zayed during an official welcoming in Abu Dhabi. AFP

UAE and Russia celebrate longstanding ties



From the moment Russia's president Vladimir Putin landed in Abu Dhabi on Tuesday, to be greeted by Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, as he stepped off the plane, the state visit was as notable for its warmth, grandeur and spectacle as it was for its formal affirmation of bilateral ties. Sheikh Mohamed referred to Mr Putin not just in the language of diplomacy but as a "friend" and accompanied him as the pair made their way, in a convoy of more than a dozen vehicles and helicopters, to the presidential palace at Qasr Al Watan. The twelve years since Mr Putin's last visit has seen a strengthening of trade, investment, cultural and strategic ties between the two nations. Since then, the two countries have come a long way in consolidating their relationship. Today, they work hand in hand in a variety of fields, ranging from defence and energy to commerce.

In fact, the UAE is Russia's biggest partner in the Gulf, with bilateral trade reaching Dh12.5 billion last year. The fruitful collaboration between the two now includes space exploration, as Russian expertise helped astronaut Hazza Al Mansouri, the first Emirati to go into space, in his quest to reach for the stars. Maj Al Mansouri was able to spend eight days on board the International Space Station thanks to the technology and training provided by Russia's space agency Roscosmos.

The UAE and Russia also collaborate on a host of defence matters, including counter-terrorism, a threat that both nations face. Two years ago, Russia and the UAE announced the start of a joint initiative to develop fifth-generation fighter aircraft. Last year Sheikh Mohamed and Mr Putin signed a declaration on strategic political, security, economic and cultural initiatives at the Kremlin. These projects are part of a bigger strategic partnership between Abu Dhabi and Moscow, which, in the words of Sheikh Abdullah bin Zayed, Minister of Foreign Affairs and International Co-operation, are “co-operating to ensure stability in the region and working together to counter and confront all forms of the extremist ideology''.

Multilateralism and diplomacy have always been a cornerstone of UAE foreign policy. Mr Putin’s visit comes at a time of rising tension with Iran in the Gulf, with Iran accused of targeting oil tankers and threatening maritime shipping routes, while in Iraq, Lebanon and Yemen, Tehran’s proxies are wreaking havoc. Yet Russia has managed to maintain good relations with leaders in all countries in the region, proving a master negotiator and diplomatic actor. This feat puts Moscow in a privileged position to reign in Turkey’s expansionist intentions in Syria and curb Iran’s meddling in the Arab world. Improved co-operation between Arab states and Russia could potentially be a stabilising factor for the region.

In a speech during his meeting with Mr Putin, Sheikh Mohamed referred to Moscow as “my second home” – a testament to the historic and fruitful ties that unite the two nations. This latest encounter between the two heads of state will certainly not be the last, and reflects the long-standing strategic interests and commercial links that bind two great nations.

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Jonathan Miller, Scribe Publications

SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
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Representing%20UAE%20overseas
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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
UAE currency: the story behind the money in your pockets

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.”

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills

Director: Laxman Utekar

Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna

Rating: 1/5

The Florida Project

Director: Sean Baker

Starring: Bria Vinaite, Brooklynn Prince, Willem Dafoe

Four stars

The bio

Favourite book: Peter Rabbit. I used to read it to my three children and still read it myself. If I am feeling down it brings back good memories.

Best thing about your job: Getting to help people. My mum always told me never to pass up an opportunity to do a good deed.

Best part of life in the UAE: The weather. The constant sunshine is amazing and there is always something to do, you have so many options when it comes to how to spend your day.

Favourite holiday destination: Malaysia. I went there for my honeymoon and ended up volunteering to teach local children for a few hours each day. It is such a special place and I plan to retire there one day.

Non-oil%20trade
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