Oman hopes to cash in on the region’s growing events industry with a new convention centre in Muscat that is expected to open in the first quarter of next year.
The first phase of Oman Convention and Exhibition Centre (OCEC) comprises 22,000 square metres of exhibition space and 10 meeting rooms to host up to 10,000 people, according to Omran, the government agency that is overseeing the project.
It will also include a total of 1,000 hotel rooms in a mix of star ratings across four hotels, a shopping mall and a business park covering 1.8 square kilometres.
A key feature of the project is that the convention centre will not rely on the grid for its energy needs as it will have a dedicated power plant. In 2017, when the second phase is completed, it will include a 3,200-seat auditorium, a 456-seat tiered lecture theatre, additional meeting rooms and two ballrooms that will lift its capacity to 15,000 people a day.
“Within the international and regional convention industry, Oman has been asked to host significant world congresses, but so far has not had a suitable venue to accommodate global conference organisers’ demands until the OCEC’s completion,” said Trevor McCartney, OCEC’s general manager.
It is hoped the convention centre will attract 200,000 people in the first year, he said.
Oman built the region’s first exhibition centre – Oman Oil and Gas Exhibition Centre in Muscat – in 1979. It hosts on average of about 30 trade and consumer exhibitions annually.
Europe, which is home to many international associations that organise meetings and congresses that travel around the world, followed by North America and the Indian sub-continent are the target markets for the centre.
It would compete with Dubai’s meetings, incentives, conferences, and exhibitions (Mice) industry, the strongest in the region.
In 2013, Dubai ranked first in Middle East and North Africa, hosting 37 international association meetings, Abu Dhabi hosted 23 and Muscat 10, according to the International Congress and Convention Association.
“Dubai has established itself as the trading hub for the region and where there is trade there is Mice,” said Matt Denton, a senior vice president at dmg events, which organises trade shows such as Big 5, Index and Abu Dhabi International Petroleum Exhibition and Conference.
“As companies were becoming more adventurous and reaching further into other developing markets in the region in recent years they have focused on the larger UAE events.”
The number of business tourists to the Arabian Gulf region grew by 5 per cent annually between 2009 and 2012, according to the consultants Euromonitor and Strategy&. But even then, the region lags behind Europe and North America in the global Mice market share.
“Only about 2 per cent of all the exhibitions in the world take place in the Middle East,” said Richard Shediac, a senior partner with Strategy&. “By contrast, Europe and North America, combined, are home to more than 80 per cent of the world’s exhibitions.”
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Director: Brady Corbet
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Rating: 3.5/5
A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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Starring: Ajay Devgn, Tabu, Shantanu Maheshwari, Jimmy Shergill, Saiee Manjrekar
Director: Neeraj Pandey
Rating: 2.5/5
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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4) Treatments include surgery and chemotherapy but early diagnosis is the key.
5) Anyone concerned is urged to contact their doctor
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- 45 pro starts worldwide: 5 wins, 17 top 5s
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FIGHT CARD
1. Featherweight 66kg
Ben Lucas (AUS) v Ibrahim Kendil (EGY)
2. Lightweight 70kg
Mohammed Kareem Aljnan (SYR) v Alphonse Besala (CMR)
3. Welterweight 77kg
Marcos Costa (BRA) v Abdelhakim Wahid (MAR)
4. Lightweight 70kg
Omar Ramadan (EGY) v Abdimitalipov Atabek (KGZ)
5. Featherweight 66kg
Ahmed Al Darmaki (UAE) v Kagimu Kigga (UGA)
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Ibrahim El Sawi (EGY) v Iuri Fraga (BRA)
7. Featherweight 66kg
Yousef Al Husani (UAE) v Mohamed Allam (EGY)
8. Catchweight 73kg
Mostafa Radi (PAL) v Abdipatta Abdizhali (KGZ)
9. Featherweight 66kg
Jaures Dea (CMR) v Andre Pinheiro (BRA)
10. Catchweight 90kg
Tarek Suleiman (SYR) v Juscelino Ferreira (BRA)