High-profile backers for summit on empowering Arab women



ABU DHABI // The wives of three Arab leaders have offered their support for the Arab Women Organization's (AWO) second summit, in Abu Dhabi this week. Lebanon's Wafa Suleiman, Amina Abbas, of the Palestinian territories, and Sudan's Widad Babiker Omer have praised the AWO chairwoman, Sheikha Fatima bint Mubarak, state news agency WAM reported. Sheikha Fatima's "role in backing the women issues across the Arab world draws gratitude and positive response", Ms Abbas, wife of the Palestinian president, Mahmoud Abbas, said. The summit, to be held from Nov 11 to 13 at Emirates Palace hotel, will bring together the wives of Arab monarchs and leaders, as well as delegates from Arab countries. They are expected to discuss programmes to aid women who work in education, health care, media and economics. The summit will also focus on the development of women, children and the family across the Arab world. Each of the leaders' wives pointed out progress made in helping the advancement of women in her country. Mrs Suleiman, wife of the Lebanese president, Michel Suleiman, said the women's movement in Lebanon was an example of resistance and success, according to WAM. Mrs Omer, wife of the Sudanese president, Omar Hassan al Bashir, said: "We in Sudan have initiated several programmes for the development of family and children. "I personally initiated a programme for combating Aids before four years, and another programme for investing in the empowerment of women and children is gaining ground." Sudan has guaranteed women will hold 25 per cent of seats in its legislature. Sheikha Fatima praised the political success of women in the UAE, noting that women comprise 22 per cent of the seats in the Federal National Council. They also hold four Cabinet positions, a 50 per cent rise on last year. As many as 66 per cent of all government jobs are held by women, with a third of those being leadership positions, WAM reported. The AWO was formed in 2000 in Cairo and is based in Egypt. jgerson@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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