Sheikh Abdullah bin Zayed, the Foreign Minister, speaking at the Federal National Council.
Sheikh Abdullah bin Zayed, the Foreign Minister, speaking at the Federal National Council.

Foreign Minister urges world to take tough stand on nuclear projects



ABU DHABI // States taking part in next month's review of the Nuclear Non-proliferation Treaty (NPT) should take a harder line on the enrichment of nuclear material and treatment of nuclear waste, the Foreign Minister said yesterday.

"The UAE has committed itself to avoid enrichment and re-enrichment, and the NPT does not [strictly] handle the states' rights on this issue," Sheikh Abdullah bin Zayed told members of the FNC. "There is no clear language in the NPT treaty that places severe restrictions on enrichment and treatment of nuclear waste." In December, a consortium of South Korean companies was awarded a contract worth US$20 billion (Dh73bn) to build four nuclear power plants in the UAE.

Officials say the UAE's plans to build a nuclear energy programme stemmed from the need to develop additional sources of electricity to meet future demand and smooth the path to sustained economic development. Sheikh Mohammed bin Zayed, the Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, earlier this month headed the UAE's delegation to the first Nuclear Security Summit in Washington.

"The UAE's peaceful nuclear programme sends a clear message that there is a clear way to benefit from peaceful nuclear energy and that countries around the world are ready to help," Sheikh Abdullah, who also took part in the nuclear summit, said yesterday. "The Emirates programme presents itself as a model for other countries that have non-transparent and unclear projects and are faced with criticism by other countries as well as the International Atomic Energy Agency."

Sheikh Abdullah's comments were a clear reference to Iran, which is under the threat of sanctions because of its refusal to give up a uranium enrichment programme that could lead to the production of weapons. Iran claims its nuclear programme is for peaceful purposes. The Foreign Minster said the UAE's programme was a model of transparency and commitment to international treaties, including those that states are not required to sign.

"Many countries around the world view our nuclear project with huge interest because of its presence in an oil-producing country and a sensitive area," he said. The UAE's nuclear policy is based on foregoing domestic enrichment and spent fuel reprocessing. The UAE has also made a decision to rely solely on third-generation light-water reactors, which ensures the UAE nuclear industry is free of the handling of highly enriched uranium and separated plutonium.

During a nearly four-hour debate, Sheikh Abdullah discussed the policies of his ministry on issues including the assassination of the Hamas leader in Dubai, food security, the state of diplomatic missions, human trafficking and human rights. On the assassination of the Hamas leader Mahmoud al Mabhouh in a Dubai hotel in February, Sheikh Abdullah warned other states against interfering in the UAE's internal affairs.

"The UAE respects the principle of non-interference in internal affairs and the UAE will not allow any country to conduct any chaotic, criminal, and illegal action on its lands," he said. "Such a country shouldn't expect to benefit from the results from its action without being pursued." A number of FNC members complained that UAE citizens had been interrogated at airports of some of the 34 countries whose nationals have visa waivers from the UAE.

Sheikh Abdullah said it was difficult for an Arab and Islamic country to ask for easing visa procedures after the September 11 attacks while in Europe individual countries are not allowed to issue visa waivers on their own as part of the Schengen visa scheme, which allows travellers to access all members of the EU with exception of Britain. "We have managed recently to obtain some commitments by some countries for reciprocal treatment but undoubtedly there are several countries that still place obstacles," said Sheikh Abdullah. "There are some countries that cause more problems than others, namely Canada, where some citizens suffer some difficulty on entering the country."

On human trafficking and human rights, he said: "We were keen to issue a law to prevents human trafficking and today courts are looking such cases." He added: "We take problems seriously in the Emirates and the fact that there are cases in courts means that we have a problem. "The Government looks at this issue with deep interest. We don't accept that such crimes are committed on Emirati land whether to transit victims or exploit them in the Emirates."

@Email:mhabboush@thenational.ae

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Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
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
 
 
 
 
 
 
 
Retail gloom

Online grocer Ocado revealed retail sales fell 5.7 per cen in its first quarter as customers switched back to pre-pandemic shopping patterns.

It was a tough comparison from a year earlier, when the UK was in lockdown, but on a two-year basis its retail division, a joint venture with Marks&Spencer, rose 31.7 per cent over the quarter.

The group added that a 15 per cent drop in customer basket size offset an 11.6. per cent rise in the number of customer transactions.

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(Yale University Press)

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When is VAR used?

Goals

Penalty decisions

Direct red-card incidents

Mistaken identity

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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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What is a robo-adviser?

Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.

These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.

Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.

Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.

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