Officials hope inmates at institutions will be better equipped to rejoin society after reforms are implemented.
Officials hope inmates at institutions will be better equipped to rejoin society after reforms are implemented.

Penal reforms aim to unlock potential



ABU DHABI // The Government is planning to introduce a set of reforms to rehabilitate young prisoners and equip them with skills to reintegrate into society. According to Abu Dhabi Police, the Interior Ministry is co-ordinating with specialists in the Ministry of Education and the Ministry of Social Affairs who work in the prison system to figure out what reforms are needed.

A private company will then be given the responsibility of introducing the reforms, under the supervision of Abu Dhabi Police. Major Gen Obaid al Ketbi, the deputy director general of Abu Dhabi Police, said the reforms would help the prison system fulfil its rehabilitation and punitive roles, and ensure offenders were equipped to become responsible citizens after their release. The as-yet-unnamed company will be given the job of rehabilitating juvenile prisoners and others in Al Wathba Prison and Al Mafraq Juvenile Centre.

Specialists from both the Ministry for Education and the Ministry for Social Affairs are stationed at Al Mafraq to help the prisoners. The Ministry of Education has been supervising the performance of the prison school, which provides classes for first to 12th grade pupils. The school also provides professional and technical training for young prisoners. The Ministry of Social Affairs is responsible for providing rehabilitation services. A number of specialists regularly assess the mental health and social situation of every prisoner.

All of those prisoner services will be taken over by the private firm. Col Mohammed al Zouabi, deputy director of the police's punitive and rehabilitation department, said Al Mafraq already had computer halls, swimming pools and sports centres for its young prisoners, and had been co-operating with colleges that provide facilities, advice, and professional and social programmes. Col al Zouabi said the old prison model would be replaced by a new, progressive one that will comply with the best international standards and practices. "A radical change is under way," he said.

Part of these reforms will be the construction of a new prison in Al Wathba, announced in July, which will accommodate up to 5,500 inmates and improve existing buildings. The prisoners will also have access to new recreational facilities. hhassan@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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