Arab countries urged to develop uniform border procedures



ABU DHABI // Border-control procedures at land crossings across the Arab world should be uniform as they are at seaports and airports, delegates at a security conference in the capital recommended. "It is a very fragile situation because, for example, so many lorries can be lined up at one side of the border and it is difficult to manage these volumes," said Dr Mohammed al Bushra of the Ministry of Interior and an academic adviser to the conference convened by the Riyadh-based Naif Arab University for Security Sciences and Abu Dhabi Police's centre of research and security studies.

"We will be looking at how to develop a system to secure transported items from the point of departure to arrival." Representatives of law enforcement agencies, academics and government officials from throughout the Middle East outlined proposals to be considered by Arab interior ministries. Discussions also focused on border security. "International co-operation is particularly important in this area, as ensuring safety at borders is not just for Arab countries, but for all," Dr al Bushra said. "It is not just limited to Arab countries, as breaches of security can affect all countries concerned."

Delegates from countries including Libya, the UAE, Saudi Arabia and Qatar pointed towards the need to share technological advances in border control. Among the recommendations is a central database to facilitate co-ordinated responses during emergencies and a proposal to share geographic data relating to border security issues. Another of the recommendations was for Naif University to host a website for centralised border information, including contact details for all the relevant regional authorities.

"Ultimately we are interested in making things easy for people to travel," Dr al Bushra said. "We shouldn't make rules that hinder these efforts." zconstantine@thenational.ae

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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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