This photo, taken on May 03, 2017, shows Russian president Vladimir Putin (R) shaking hands with his Turkish counterpart, Recep Tayyip Erdogan, after a joint press conference following their meeting at the Bocharov Ruchei state residence in Sochi.
Alexander Nemenov
This photo, taken on May 03, 2017, shows Russian president Vladimir Putin (R) shaking hands with his Turkish counterpart, Recep Tayyip Erdogan, after a joint press conference following their meeting aShow more

Erdogan: Turkey signs deal to buy Russian S-400 missile systems



Turkey has signed a deal with Russia to buy S-400 missile defence systems in its first major weapons purchase from Moscow, Turkish newspapers on Tuesday quoted president Recep Tayyip Erdogan as saying.

The accord for the surface-to-air missile defence batteries is Ankara's most significant pact with a non-NATO supplier.

"Signatures have been made for the purchase of S-400s from Russia. A deposit has also been paid as far as I know," Mr Erdogan said in comments published in the Hurriyet daily and other newspapers.

"[Russian president Vladimir Putin] and myself are determined on this issue," he told journalists.

The purchase of the missile systems from a non-NATO supplier will raise concerns in the West over their compatibility with the alliance's equipment.

The Pentagon has already sounded alarm, saying bluntly that "generally it's a good idea" for NATO allies to buy inter-operable equipment.

Mr Erdogan said Turkey was free to make military acquisitions based on its defence needs.

"We make the decisions about our own independence ourselves, we are obliged to take safety and security measures in order to defend our country," he said.

Moscow also confirmed the accord, with Vladimir Kozhin, Mr Putin's adviser for military and technical co-operation, saying: "The contract has been signed and is being prepared for implementation."

He said that the S-400 was one of the most complex systems, made up of a whole range of technical materials.

"I can only guarantee that all decisions taken on this contract strictly comply with our strategic interests," he was quoted as saying by Russian state-owned TASS news agency.

"For this reason we fully understand the reactions of several Western countries which are trying to put pressure on Turkey," he added.

Russia's relations with NATO have been in crisis over its annexation of Crimea from Ukraine and for backing pro-Moscow separatists in eastern Ukraine.

Turkey, a NATO member since 1952, has currently troubled ties with the US over a number of issues including Washington's support of the People's Protection Units (YPG) Syrian Kurd militia which Ankara considers a terror group.

How will Gen Alpha invest?

Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.

“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.

Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.

He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.

Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”

How to watch Ireland v Pakistan in UAE

When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

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UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

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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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