Project prepares students for private sector



DUBAI // A non-profit group is aiming to boost leadership and communication skills among state school students by matching youngsters with role models from private sector companies. Emirati students from state schools often avoid the private sector because it requires skills they did not develop during their studies, according to employment experts.

Now, Injaz-UAE, the local arm of Junior Achievement Worldwide, is working to rectify this imbalance and ensure public school students have a comprehensive skillset. The organisation offers pupils the chance to establish a link with volunteers from private groups and develop skills such as financial literacy and entrepreneurship. The exposure aims to help them choose a suitable career path, and complements the Government's Emiratisation programme.

A 2007-2008 study by the Mohammed Bin Rashid Al Maktoum Foundation found that only 37 per cent of Gulf chief executives were satisfied with the skills of their Gulf nationals, leading them to focus on hiring expatriates. Mohammed al Neaimi, the programme director of Tawteen, an empowerment agency established by the Emirates Foundation, said: "If UAE nationals are given the skills that allow them to believe they have a stake in the development of their still-young nation, then the drive and inspiration that comes with that will ensure creativity and growth."

The survey highlighted the disparity between prospective employees' skills and the abilities which employers wanted of their staff. Problem areas included communication, teamwork and creative thinking. Organisations such as Injaz-UAE are working to close that gap, said Sheikh Khalid bin Zayed bin Saqer, its chairman. "Many public school students shy away from private sector jobs due to lack of knowledge and exposure to the corporate sector, a situation the Ministry of Education has been keen to reform," he said.

Injaz-UAE has been collaborating with the Ministry for the past three years, with 537 volunteers helping more than 6,200 students from 15 institutions. That effort helps compensate for the lack of training students receive in public schools, due in some cases to insufficient facilities, said Sulaf al Zu'bi, the chief executive of Injaz-UAE. "Emirati nationals who are in private schools do not lack soft skills per se, since many private schools have career-oriented programmes," she said. "It's not a matter of nationality, but a matter of education and the schools that students attend."

Volunteers provide students with hands-on experience to develop critical-thinking skills. Mohammed Azab, the executive director of Citi Private Bank, a volunteer in the project, said "It was really exciting to see that I could apply my personal work experience while teaching students to identify issues, think out of the box and come up with solutions to challenges." One part of the programme involved learning how to launch a business with a group of people, said Zainab Hassan, a 16-year-old who is in Grade 10 at the Za'abeel Public School.

She is Interested in pursuing a degree in political science, and after taking part in the Injaz-UAE project she believes working in the private sector upon graduating would be more valuable. "I feel that the private sector has more advantages than the public sector, because we learn more in the private," she said. "In the private sector, they would give us more than we can handle, so when we face difficulties we can deal with it."

newsdesk@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.”

 

 

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