President Sheikh Mohamed says Dubai Airshow's success reflects UAE's global standing


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President Sheikh Mohamed has said the Dubai Airshow embodies the UAE's position as a leading force in the global aviation industry.

Sheikh Mohamed made the comments as he visited the show, which has been taking place in Dubai since Monday.

He also emphasised the importance of the aviation industry, which has the knock-on effect of stimulating growth in several related sectors.

“The continuous success the air show achieves is an embodiment of the UAE's position as an influential partner in the aviation industry,” said Sheikh Mohamed, in comments carried by state news agency Wam.

“The exhibition is a global platform that brings together decision makers, sector leaders, experts and stakeholders who discuss the latest innovative solutions and future trends in developing the world of aviation and creating a better future for this sector.

“The aviation sector represents one of the most important vital fields that stimulate and support the growth of many sectors related to this industry.”

Sheikh Mohamed was accompanied by Sheikh Mansour bin Zayed, Vice President, Deputy Prime Minister and Chairman of the Presidential Court.

Also visiting the airshow on Wednesday was Sheikh Hamdan bin Mohammed, Crown Prince of Dubai.

Sheikh Hamdan hailed the event's “growing status as a platform for the global aviation sector to explore new opportunities for growth and innovation”.

“The growing international significance of the trade show is reflected in the multibillion-dollar deals signed during this year’s event,” he said.

“The economic impact of the event highlights the role it plays in fostering global co-operation and sustainable technologies in the aviation industry.”

Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi, also toured the event, which he said strengthened the UAE’s position as a major global aerospace player and a hub for innovation.

“The Dubai Airshow reflects the UAE’s strategic focus on integrating aerospace innovation with advanced technology and sustainability,” he said.

The Dubai Airshow is taking place at Al Maktoum International Airport until November 17.

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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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Updated: November 16, 2023, 8:39 AM