President Nicolas Maduro is seeking a second six-year term, and opposition lawmakers have said security forces have physically threatened them and their supporters. EPA/Miguel Gutierrez
President Nicolas Maduro is seeking a second six-year term, and opposition lawmakers have said security forces have physically threatened them and their supporters. EPA/Miguel Gutierrez

Mike Pence asks Venezuela to suspend ‘so-called’ elections



Vice president Mike Pence called on Venezuela to suspend its presidential election later this month because of corruption concerns, declaring that the results would be fraudulent.

The Trump administration joined the European Union in calling on Venezuela to postpone the May 20 election without assurances it will be a free and fair contest. President Nicolas Maduro is seeking a second six-year term, and opposition lawmakers have said security forces have physically threatened them and their supporters.

Mr Maduro, the US vice president said in a speech to the Organisation of American States, “promised people he would restore prosperity but delivered only deep poverty. He promised renewed greatness but he has only brought that nation suffering.”

“The so-called elections in Venezuela scheduled for May 20 will be nothing more than a fraud and a sham,” Mr Pence said. “There will be no real election in Venezuela on May 20 and the world knows it.”

The US also announced new sanctions on three Venezuelans, including Pedro Luis Martin Olivares, a former intelligence official under indictment in Florida on drug trafficking charges, and 20 companies the Treasury Department said were connected to the targeted Venezuelans. The three men were sanctioned under a US law targeting drug kingpins.

Elections in Venezuela are traditionally held in December, but the country’s National Electoral Council scheduled the contest for spring – a move critics say aims to take advantage of divisions within the opposition. The US state department has said not all political parties have agreed to the elections, limiting the ability of individuals to run.

The US continues to weigh whether to ban imports of Venezuelan oil, which accounts for 95 per cent of the country’s foreign-currency earnings. Venezuela, a founding member of Opec, has the world’s largest proven reserves and is South America’s largest oil exporter. It is the third-largest source of America’s imported oil.

Meanwhile, the country’s opposition claimed on Monday that Venezuela’s inflation rate rose by 13,779 per cent in the past year, a study released Monday by the opposition-dominated National Assembly has found.

The figure confirmed other estimates showing that Venezuela has by far the world’s highest inflation rate.

The International Monetary Fund projects that Venezuela’s inflation will top 13,800 per cent this year.

“We are in the country with the highest hyperinflation in the world,” the head of the legislature’s commission, Rafael Guzman, told a news conference. “We need a new fiscal and exchange rate policy to stabilise the money.”

The National Assembly has been reporting Venezuela’s inflation since last year, when the government stopped giving an official figure.

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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.

Heavily-sugared soft drinks slip through the tax net

Some popular drinks with high levels of sugar and caffeine have slipped through the fizz drink tax loophole, as they are not carbonated or classed as an energy drink.

Arizona Iced Tea with lemon is one of those beverages, with one 240 millilitre serving offering up 23 grams of sugar - about six teaspoons.

A 680ml can of Arizona Iced Tea costs just Dh6.

Most sports drinks sold in supermarkets were found to contain, on average, five teaspoons of sugar in a 500ml bottle.

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.”