Road to progress needs work



BEIRUT // Back in 2005, a particularly big hole or "joura" as it is locally known, was a nuisance for drivers along the main highway connecting Beirut to its northern cities, and almost ruined my tyres as I sped along it to cover the parliamentary elections in Lebanon. That same hole is still causing havoc on the highway in 2009. For although people talk of "change" coming here - and it might have, in the form of the quality of the campaigning itself, the high voter turnout and the dedication of the interior minister, Ziad Baroud, to maintain transparency - much on the ground remains the same.

Many of the northern and southern cities as well as parts of Beirut itself, remain as run-down, neglected and poor as I remember them. Purse-snatching is back in, it is said, which cannot be a good sign. Although some of the war-ravaged roads and buildings from the 2006 war between Hizbollah and Israel have been fixed, there is still a lot to be done. If just a tiny percentage of the vast sums pumped into the campaigns - just one million, say, from the hundreds of millions of dollars spent on such things as tickets for overseas Lebanese to return to vote - were put into the rebuilding of the country, then it would be money well spent.

At any rate, after weeks of intense campaigning and spending by all the major political camps, parliamentary elections ended with the March 14 coalition winning more seats in parliament than the opposition March 8 group, which is headed by Hizbollah. The outcome is being hailed as a victory for the interests of the United States and Europe over those of Iran and Syria. I always found it fascinating how this tiny country had so many big brothers and sisters interested in its internal politics.

Regardless of the outcome, the major camps have vowed to "work together" and form a national unity government or at least some other creative form of a functional government, with crucial input from the widely respected and mostly neutral president, Michel Suleiman, who is expected to pick 11 of the 30 ministers in the new cabinet. What was actually different about these elections was their calm feel. As passionate as the Lebanese were about them, most were not scared about the possible eruption of clashes despite the defeat of some major traditional political families, such as the Saads in Saida and Karamehs in Tripoli.

Anyone remotely associated with the opposition is believed to be close to Syria, and that is something the Lebanese voted strongly against. Or perhaps, they are giving March 14 a chance to see if it will bring the change it promised. Although it was not much of a battle in Tripoli, it is important to note some obvious changes in the once-cosmopolitan city. I tagged along with several members of my family when they went to vote, and some of the polling stations were in areas that have deteriorated to the extent that it pushed one of my elderly relatives to tears.

"I can't believe people are living here in run-down homes that are over a hundred years old and nobody seems to care enough about helping them live a better life," said my aunt, who is 70. She noted the overwhelming number of conservative families now in the port city she says was much more diverse before the civil war of 1975-1990, which saw the ousting of Christians and other minorities from the now predominantly Sunni city.

Women refused to show their faces from behind their niqabs to security officers as they headed to the polling stations, something my family members say they had never seen before in Lebanon. "With poverty comes extremism, and I think it is important for the politicians who won and who claim to be more secular to tackle this before it becomes a permanent problem here," my aunt said. Tripoli and its nearby areas have had a series of serious clashes over the past few years between state security forces and Sunni fundamentalist groups linked to al Qa'eda. It is said a country is judged by the way it treats its poorest citizens, and so in those terms, Lebanon has a lot of catching up to do - even if it calls itself an exemplary democratic country on the brink of a "new dawn".

rghazal@thenational.ae

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.”

While you're here
Feeding the thousands for iftar

Six industrial scale vats of 500litres each are used to cook the kanji or broth 

Each vat contains kanji or porridge to feed 1,000 people

The rice porridge is poured into a 500ml plastic box

350 plastic tubs are placed in one container trolley

Each aluminium container trolley weighing 300kg is unloaded by a small crane fitted on a truck

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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Specs

Engine: Dual-motor all-wheel-drive electric

Range: Up to 610km

Power: 905hp

Torque: 985Nm

Price: From Dh439,000

Available: Now

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
The biog

Name: Abeer Al Shahi

Emirate: Sharjah – Khor Fakkan

Education: Master’s degree in special education, preparing for a PhD in philosophy.

Favourite activities: Bungee jumping

Favourite quote: “My people and I will not settle for anything less than first place” – Sheikh Mohammed bin Rashid.

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

MATCH INFO

Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid

When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid

A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

Europe’s rearming plan
  • Suspend strict budget rules to allow member countries to step up defence spending
  • Create new "instrument" providing €150 billion of loans to member countries for defence investment
  • Use the existing EU budget to direct more funds towards defence-related investment
  • Engage the bloc's European Investment Bank to drop limits on lending to defence firms
  • Create a savings and investments union to help companies access capital
Tips to avoid getting scammed

1) Beware of cheques presented late on Thursday

2) Visit an RTA centre to change registration only after receiving payment

3) Be aware of people asking to test drive the car alone

4) Try not to close the sale at night

5) Don't be rushed into a sale 

6) Call 901 if you see any suspicious behaviour