Some 8,000 women make up almost 72 per cent of the UAE nationals in the banking workforce. Mona Al Marzooqi / The National
Some 8,000 women make up almost 72 per cent of the UAE nationals in the banking workforce. Mona Al Marzooqi / The National

Flexibility to smash the glass ceiling



The UAE’s banking sector is one of the many where women are underrepresented in leadership positions. Only 12 per cent of the 8,000 Emirati women in banking have senior management roles. This is the case despite the high representation of Emirati women in the sector. As the chairman of the UAE Banks Federation, Abdul Aziz Al Ghurair, wrote in The National yesterday, 72 per cent of all the UAE nationals in the banking workforce are women. But they don’t seem to get very far up the ladder. Why?

There is no single answer, as Mr Al Ghurair points out. Women face many challenges when they join the workforce. Some of these could be cultural, such as a gender bias that is both historical and deep. It is the reason that despite all the sterling work done by women – the inventions, discoveries, entrepreneurship – misconceptions persist about their capabilities.

Sometimes, of course, women don’t get to the top because they don’t stay long enough to be promoted. Many women leave their jobs once they have children. As in other parts of the world, juggling work and family is probably the biggest challenge facing working women here in the UAE. But there is a need to support them and retain them within the workforce.

As we have argued before, a range of measures is needed. First and foremost, women must have adequate maternity leave and it should be in line with the average in the developed world. UAE labour law allows just 45 days of paid leave for new mothers in the private sector and 60 days for those with government jobs. This is certainly not long enough for women to adjust to their new circumstances, bond with the baby and return to work relatively untroubled. In Sweden, for example, mothers receive just over three quarters of their previous salary for up to 13 months after giving birth.

The workplace could also be more flexible. Some local banks have already made progress in this area, offering alternatives such as job sharing, part-time work or reduced hours, if needed. Workplace nurseries also help because women often feel better when they can look in on the baby during the work day. On their own, none of these measures would be particularly effective but taken together, they would help stem the female exodus from the workforce.

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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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THE LIGHT

Director: Tom Tykwer

Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger

Rating: 3/5

Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

Other workplace saving schemes
  • The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
  • Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
  • National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
  • In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
  • Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
The Sand Castle

Director: Matty Brown

Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea

Rating: 2.5/5

How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.