World Cup could be traded for Olympic spot



DUBAI // The UAE may have played host to the final Rugby World Cup Sevens after the game's ruling body revealed plans to scrap the event if the sport is accepted into the Olympics. The International Rugby Board are willing to sacrifice the tournament and make a potential Olympic Sevens competition the pinnacle of the four-year cycle. They will make a pitch to the International Olympic Committee (IOC) next month, as they bid for one of two places available to new sports at the 2016 Games.

The 24-nation tournament in March at Dubai formed the cornerstone of the IRB's Olympic bid. Crucially, a 16-team women's competition, which was played concurrently to the men's event - won by Wales - showcased the inclusiveness of the sport in front of a 35,000 strong crowd. In 2005, when rugby last failed in its attempt to be included, it was criticised for not doing enough to develop the women's game.

Mike Friday, who enjoyed much success at the Dubai Rugby Sevens as the coach of England's men's side, was a coaching consultant to their women's side in March. He said: "It was wonderful in 1998 to go to the Commonwealth Games as a player, and in Manchester 2002 when I was coaching. It just has to be an Olympic sport, because it crosses 56 nations, both in the men's game and the women's." As Cheryl Soon, the captain of the winning Australian women's team in Dubai, put it: "To win a medal at the Olympics is the absolute pinnacle. It's what we dream of."

The prominence of nations such as Fiji, Samoa and Argentina, who have little Olympic presence in other sports, is also a major selling point for the IRB. Friday added: "In a lot of sports, it is pretty much foregone who the top eight are normally, but the top sevens sides could come from anywhere, which is what the Olympics is all about." @Email:pradley@thenational.ae

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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.”