Emiratis explain why they resigned



DUBAI // A low retention rate for nationals is undermining the Emiratisation process, according to a survey of more than 6,000 nationals who had recently resigned from corporate positions, which found that 60 per cent had left because of insensitive management.

The study, by the government-sponsored Emirates National Development Programme (ENDP), revealed a lack of career progression, insensitivity to religious customs and dress codes and the absence of a mentoring culture as the most frequently cited reasons nationals resigned their posts. However, speaking at the fourth GCC Nationalisation Summit yesterday, Kamraan Siddiqui, career adviser for the ENDP, said a reluctance to work long hours and unrealistic expectations of quick promotion were also factors in the high percentage of nationals who left their jobs.

"Within Emirati families there is a negative perception of certain commercial sectors, especially real estate and hospitality. There is also a strong wish among nationals seeking employment to work within Emirati teams that understand traditional customs, etiquette and dress codes. "Long working hours, shift systems and uniforms are very unpopular and are frequently cited as reasons for resignation. Secure positions in government departments and Islamic banks are favoured as promotion is guaranteed after certain periods of service and there is a sense that they are contributing to the development of the country."

The ENDP has the job of providing support both for nationals seeking work and for employers trying to comply with Emiratisation regulations. One part of this process was closely monitoring more than 20,000 nationals who were currently in or seeking employment in the corporate sector. Mr Siddiqui said one issue that arose frequently was that nationals expected to be coached and mentored by senior staff whereas their employers expected them to be self-sufficient and to overcome challenges through their own initiative.

Dr Tommy Weir, executive director of the EM leadership centre and an expert in the recruitment of nationals into senior positions, said that tensions between local employees and western employers were often a result of different management styles prevalent within the corporate cultures of contrasting regions. "In the GCC there is too much emphasis placed on prestige and position. If a national has a degree from Harvard or Cambridge they expect to have a senior role in a company, even if that qualification does not provide them with the skills for that role. There is not enough emphasis placed on performance.

"Similarly the local culture judges success on a position attained rather than performance in that position. Expat CEOs and managers forget that the UAE is a first-generation corporate society and that corporate principles that may be established in the West are new to this region." Abdulrahman Saqr, head of Emiratisation at Lloyds Banking Group, said cultural awareness programmes and the economic slowdown had given reason for hope that Emiratisation would become a natural process.

"To some extent young Emiratis ... have had everything provided for them," he said. "This combined with a lack of career counselling has been an issue and a barrier to the Emiratisation process. But this is changing." From an early age, children were now being given career information and advice. Some traditional barriers, such as literacy rates and proficiency in English, were also much less of an issue.

The conference concludes today. tbrooks@thenational.ae

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The five pillars of Islam

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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The Africa Institute 101

Housed on the same site as the original Africa Hall, which first hosted an Arab-African Symposium in 1976, the newly renovated building will be home to a think tank and postgraduate studies hub (it will offer master’s and PhD programmes). The centre will focus on both the historical and contemporary links between Africa and the Gulf, and will serve as a meeting place for conferences, symposia, lectures, film screenings, plays, musical performances and more. In fact, today it is hosting a symposium – 5-plus-1: Rethinking Abstraction that will look at the six decades of Frank Bowling’s career, as well as those of his contemporaries that invested social, cultural and personal meaning into abstraction.