Exchange houses in the UAE have reported a spike in demand for remittances to the UK. Victor Besa for The National.
Exchange houses in the UAE have reported a spike in demand for remittances to the UK. Victor Besa for The National.


The Gulf remittance story is worth cherishing



June 24, 2022

A win-win relationship

I write in reference to Ramola Talwar Badam's article How Indians in UAE are working to secure a better future for families back home (June 16): the stories of Indian expatriates living in the UAE and providing for their families are touching. People work hard for years to give their families back home a good life. As someone who used to live in the UAE, I am aware of the hard work and sacrifices expats living in the Gulf make to afford their families the best shot at life. The Gulf expat story is an integral part of the larger Gulf development story. Everyone from expats to locals to governments can be proud of this decades-long, mutually beneficial arrangement.

K Ragavan, Bengaluru, India

EU should have its own security council

I write in reference to Neil Murphy's article Ukraine awaits EU word on membership as Russia makes gains near Severodonetsk (June 20): as many readers have already noticed, decisions, whether in Nato or the EU, are blocked with constant vetoes. Now, it has to be said about the veto in the EU that it is used very often by Hungary, for example, in the bloc's planned sanctions against Russia. This could be remedied if only the six founding members of the EU – France, Germany, Italy and the so-called Benelux countries – have the right of veto within the organisation.

Stefan Vollmershausen, Berlin, Germany

People should continue to wear masks

I write in reference to Nick Webster and Shireena Al Nowais' article Doctors warn complacency is the biggest risk as Covid-19 cases in UAE rise (June 22): in Canada, at a grocery store check-out counter recently, an unmasked young man in the queue stood inches away from me. I requested him to wear a mask and/or keep his distance as marked on the floor. Whereupon, he rudely and loudly asked if I was the police. He also called me ignorant and said the mask mandate had been lifted. There was general laughter from other unmasked shoppers. I wish the store staff had demanded the man leave the shop. The sign on the door clearly said: “No mask. No entry.” But they did not. Instead, I left without the groceries.

It seems that in parts of the world the human and financial costs of Covid-19 have not been felt by many people.

Asha Gidwani, Toronto, Canada

U19 World Cup in South Africa

Group A: India, Japan, New Zealand, Sri Lanka

Group B: Australia, England, Nigeria, West Indies

Group C: Bangladesh, Pakistan, Scotland, Zimbabwe

Group D: Afghanistan, Canada, South Africa, UAE

UAE fixtures

Saturday, January 18, v Canada

Wednesday, January 22, v Afghanistan

Saturday, January 25, v South Africa

UAE squad

Aryan Lakra (captain), Vriitya Aravind, Deshan Chethyia, Mohammed Farazuddin, Jonathan Figy, Osama Hassan, Karthik Meiyappan, Rishabh Mukherjee, Ali Naseer, Wasi Shah, Alishan Sharafu, Sanchit Sharma, Kai Smith, Akasha Tahir, Ansh Tandon

The Bio

Favourite vegetable: “I really like the taste of the beetroot, the potatoes and the eggplant we are producing.”

Holiday destination: “I like Paris very much, it’s a city very close to my heart.”

Book: “Das Kapital, by Karl Marx. I am not a communist, but there are a lot of lessons for the capitalist system, if you let it get out of control, and humanity.”

Musician: “I like very much Fairuz, the Lebanese singer, and the other is Umm Kulthum. Fairuz is for listening to in the morning, Umm Kulthum for the night.”

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.”

MATCH INFO

Uefa Champions League, last-16, second leg (first-leg scores in brackets):

PSG (2) v Manchester United (0)

Midnight (Thursday), BeIN Sports

Company Fact Box

Company name/date started: Abwaab Technologies / September 2019

Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO

Based: Amman, Jordan

Sector: Education Technology

Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed

Stage: early-stage startup 

Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.

Updated: June 24, 2022, 3:00 AM