Abu Dhabi to get medical college



ABU DHABI // India's Manipal University plans to open a medical college in Abu Dhabi next year that will cater to local and expatriate students, a businessman from the country said yesterday.

The medical college is likely to begin classes in September 2012 with a batch of 100 students, said BR Shetty, the founder of New Medical Centre (NMC), after signing a memorandum of understanding with the Manipal Group in southern India's Manipal city over the weekend.

"In five years, there will be a scarcity of doctors in Abu Dhabi and in the Gulf region," said Dr Shetty on telephone from India.

"This college will be good because there is a demand, not only from expatriate students, but from locals and GCC citizens also."

The announcement was made in India during Manipal University's foundation day ceremony. Details of the agreement with NMC, one of Abu Dhabi's oldest health care companies, were not available and the location of the Abu Dhabi campus has not be finalised.

The university's medical college is ranked among the top 10 in India. Students from more than 50 countries have signed up for degrees in medicine, engineering, life sciences and communication in the university's campuses in three southern Indian cities.

The university opened its Dubai campus 11 years ago and has 1,600 students enrolled.

Dr B Ramjee, the director of Manipal University, Dubai, said officials are first looking at setting up the campus in Dubai for which statutory regulations are being evaluated.

Three years ago, Manipal University in Dubai announced it would add a dedicated medical college to its campus. The college will be located in Dubai International Academic City.

"We are working hard on setting up our medical programme," Dr Ramjee said. "We are examining possibilities of opening the Abu Dhabi campus once we firmly establish our Dubai campus. Dubai remains our hub, but the Abu Dhabi college is also needed because we want all regions of the UAE to have access to medical school facilities."

The group has plans for colleges in countries around the Gulf region, such as in Oman and Bahrain.

"There is a dire need for well-qualified doctors," he said. "Not only are we are looking at Abu Dhabi, we are hoping to expand in the Middle East with Dubai as our base."

The date of the opening of the medical college and details of the application process will be announced later.

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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.”

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