Crown prince Mohammed bin Salman launches the first Hawk trainer jet assembled locally. Saudi Press Agency
Crown prince Mohammed bin Salman launches the first Hawk trainer jet assembled locally. Saudi Press Agency

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Saudi Arabia could pave the way for space exploration

Our readers weigh in on Bouteflika, sponsorship rules, poor diets and snowfall in the desert

Letters to the Editor

April 02, 2019

I refer to Dania Saadi's article Saudi Crown Prince launches the country's first locally-assembled Hawk jet (April 1). I was happy to read this good news. Saudi Arabia has the means to lead in aerospace and maybe even space exploration one day. I believe that any fighter jet currently in existence could be made in Saudi Arabia.

Name withheld by request

New sponsorship rules will improve people’s lives

I refer to your editorial New sponsorship rules  will create a dynamic nation (April 2). The UAE has largely benefited from its growing expatriate population over the years and today the UAE government is giving back to them. The new sponsorship rules for expatriate family members shows the UAE's clear intention to welcome foreign nationals and their families, provided they have the means to support them. This is a much needed reform that will have a positive impact on people's lives.

K Ragavan, Bengaluru

Poor diets have devastating effects on children’s health

I write to you in reference to Anam Rizvi's article Some Emirati infants fed unhealthy diet of fries, cakes and biscuits, study finds (April 1). As a teacher, I can attest to the fact that this statement is sadly true. I see children eating unhealthy foods daily.

It is especially detrimental to children with special needs or learning disabilities to have unhealthy eating habits, because nothing is more essential to healthy brain development than proper nutrition. I urge parents everywhere to pay close attention to their children’s diet.

Cecilia Zapata, Dubai

I see this all the time. Just a few weeks ago, in a hospital emergency room, I saw a mother feeding her son crisps, candy and cheap, sugary juice while the child was sick and waiting to consult a doctor. I know these parents do not mean their children any harm, but it is nonethless upsetting to see.

Tiffany Malnar, Dubai

Snowfall in the desert is a sign of climate change

I write to you in reference to your online video of spring snowfall in Saudi Arabia (April 1). Who would have believed that snowfall was possible in a desert climate? This video was interesting to watch, but I do not think the camels and palm trees will have enjoyed the snow. Although amusing, this phenomenon is a reminder that climate change is a real threat that we must wake up to.

Name withheld by request

President Bouteflika was a great Algerian leader

I write to you in reference to your article After a 20-year rule, Algeria's President Bouteflika will step down by April 28 (April 2). Mr Bouteflika was such a great leader. I am saddened to see him step down in this way, but such is the will of the people. You are in my prayers, Mr President.

Boughazi Abdelmoumen, Tlemcen

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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.”