ABU DHABI // Members of the FNCconcluded their final session yesterday amid predictions that the next elections will be scheduled for September.
There was no official confirmation of an election date. “What we’ve heard so far is the expectation that the elections will happen this year … in September,” Najla al Awadhi, a member from Dubai, said after the session closed.
Ms al Awadhi underscored her confidence in the date by writing on her Twitter account that elections would be held in September.
"The central message is that there will be elections this year and there won't be a parliamentary gap," she said.
Council members also used the final session to repeat calls for expanded powers.
“There is no doubt that the time has come for this council to move from issuing proposals to taking decisions,” Sultan Saqr al Suwaidi, the chairman of the FNC’s youth and media committee, said.
“We have to raise the ceiling,” said Mr al Suwaidi, a member from Dubai, adding that the council should have greater authority “so we can call this council a legislative and oversight council”.
The 40-member FNC currently has the authority to debate and amend laws, question ministers and discuss the annual federal budget, but not to initiate legislation.
Half of the FNC’s members are appointed by the rulers of the seven emirates, while the other half are chosen by an electoral college of nearly 6,700 Emiratis, who are chosen by the rulers.
Dr Anwar Gargash, the Minister of State for FNC Affairs, highlighted the fact that this FNC was a historic one, being the first to experience elections and to have its term extended to four years.
“The process of modernising the FNC occupies an important and expanding position in political discourse,” Dr Gargash said.
“The political leadership has never been far from this popular ambition, but it is among its priorities.”
Dr Gargash said the first FNC elections represented a “start” that would be supplemented by “increasing participation and interaction by the nation’s children.”
Abdulaziz al Ghurair, the speaker of the FNC, yesterday listed what he said were this council's milestones.
Among them were passing a crucial public debt law, amending consumer protection legislation and working on improving the country's electrical grid and health services.
In a statement addressed to FNC members on Monday, Sheikh Khalifa, the President of the UAE, said the country wanted to continue its “successful” parliamentary experience.
Ms al Awadhi said there was a clear direction from the Government to engage more Emiratis in the country’s political process and to create a “culture of activism in society”.
The Government was signalling that there would be broader political participation in the future, she said.
"There is no going back."
Some FNC members have a broad range of proposals for reform of the council.
These include an expansion of the electoral base that elects half the members in order to enfranchise more Emiratis, and having more representatives.
Other proposals include granting the council broader oversight powers in order to hold government bodies accountable and, somewhere down the line, the power to initiate legislation.
Ms al Awadhi spoke in particular of the role of women on the council, saying there should be a “meritocratic quota” for women to ensure that a critical mass of qualified females were on the council.
This would allow them to raise issues that were particularly pertinent to women with greater forcefulness, and without feeling pressured, she said.
kshaheen@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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