ISSUE FORTY THREE - OCTOBER - NOVEMBER 2017
ISSUE FORTY THREE - OCTOBER - NOVEMBER 2017 CAPITAL PRESERVATION, SIMPLICITY, AND LIQUIDITY
Capital preservation, simplicity, and liquidity SAED ABU KARSH, CEO, ARK CAPITAL
PRIVATE BANKING THE START OF A RENAISSANCE 18
LUXURY TRAVEL BARCELONA'S DISFRUTAR 42
MOTORING DRIVE LIKE A WWE SUPERSTAR 46
CONTENTS
ISSUE FORTY THREE - OCTOBER - NOVEMBER 2017
OPINION
06
The tide subsides
Editor's
LETTER
NEWS & ANALYSIS
Greetings all,
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Welcome to the 43rd issue of WEALTH Arabia. If you’re reading this at the WEALTH Arabia Summit, we’re so glad you made it to the most important date on our yearly calendar, and we hope you enjoy your knowledge-packed day. If you’re reading this after the event and missed out, you’ll have to wait until next issue for our full coverage of all the action. There’s many excellent investment and private banking stories for you to peruse, but I’ll use this space to turn you to the story on page 42. There, I speak with the chefs of the restaurant Disfrutar in Barcelona. I have spoken to a number of HNWIs in the region who have been to Barcelona and have tried the restaurant, as its reputation has already spread, and I can now say that it is not to be missed. If you haven’t been, get on your private jet and go this evening—if you can get a table. They are fascinating men, as you will learn. Beyond that, there’s still much to explore. I hope you enjoy it. Till next time,
William Mullally 4
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The latest analysis from the investment world
COVER STORY
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Ark Capital: Capital preservation, simplicity, and liquidity
PRIVATE BANKING
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2017’s ‘Best Private Bank’
Private banking: the start of a renaissance
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INVESTMENT
20
Does inheritance tax concern you? If not, maybe it should
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Keeping investors on their toes…
26 30
Making the most of the bear market in oil Bringing ‘prestige’ to Shari’ah-compliant investment
33
Filling the post-crisis void
26
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42 Chairman SALEH F. AL AKRABI Chief Executive Officers TONY LONG Sales Director OMER HUSSAIN
Editor, WEALTH Arabia WILLIAM MULLALLY William@cpifinancial.net Tel: +971 4 391 3718 EDITORS MATT AMLÔT matt@cpifinancial.net Tel: +971 4 391 3716
REAL ESTATE
36 40
JESSICA COMBES jessica@cpifinancial.net Tel: +971 4 364 2024
Late-cycle behaviour
Aristo Developers: Your property partner in Cyprus and your gateway to Europe
LUXURY RESTAURANTS
NABILAH ANNUAR nabilah.annuar@ cpifinancial.net +971 4 391 3718
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Contributors Benoit Barbereau Chris Ferguson Tariq Qaqish Hussein Sayed Andronicos Antoniou
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The new ‘best restaurant in the world’
Chief Designer BUENAVENTURA R. JALUAG, JR. jun@cpifinancial.net
MOTORING
Senior Designer FLORANTE MAGSAKAY florante@cpifinancial.net
46
Drive like a WWE Superstar
Creative Designer ANA MAKSIĆ ana@cpifinancial.net
EVENTS
50
The Dubai International Motor Show
46
Business Development Manager WEALTH Arabia DANIEL BATEMAN daniel@cpifinancial.net Tel: +971 4 3752526 Business Development Managers NIKHIL MATHUR nikhil@cpifinancial.net Tel: +971 4 391 3717 MOHAMED MAKSOUD mohamed@cpifinancial.net Tel: +971 4 391 5320 SIMON MOTWALI simon.motwali@ cpifinancial.net +971 4 4335321 London Bureau ISLA MACFARLANE isla@cpifinancial.net Tel: +44 7857 429476 Consultant ROBIN AMLÔT robin@cpifinancial.net Finance Manager SHAIS MEMON, ACCA, CMA Shais.memon@ cpifinancial.net Tel: +971 4 391 3727 Data Analyst NADINE ABOUZEID nadine@cpifinancial.net
Administration & Online Content Manager Subscriptions SIYA PAINAYIL enquiries@cpifinancial.net siya@cpifinancial.net Tel: +971 4 391 4682 Tel: +971 4 391 3722 Tel: +971 4 391 3709
Head Office P.O. Box 502491, Dubai Media City Dubai, UAE Fax: +971 4 390 9756
ISSUE FORTY THREE - OCTOBER - NOVEMBER 2017
ISSUE FORTY THREE - OCTOBER - NOVEMBER 2017 CAPITAL PRESERVATION, SIMPLICITY, AND LIQUIDITY
www.cpifinancial.net WEALTH WARNING! Remember, if you wish to act on any of the information you read in WEALTH Arabia, consider taking independent advice first. WEALTH Arabia is written for a general audience and the information contained herein may not be appropriate for your personal circumstances.
Capital preservation, simplicity, and liquidity SAED ABU KARSH, CEO, ARK CAPITAL
PRIVATE BANKING THE START OF A RENAISSANCE 18
LUXURY TRAVEL BARCELONA'S DISFRUTAR 42
Cover 43.indd 24
MOTORING DRIVE LIKE A WWE SUPERSTAR 46
Registered at the Dubai Media City Printed by United Printing & Publishing – Abu Dhabi, UAE © 2017 CPI Financial FZ LLC All rights reserved. No part of this publication may be reproduced or used in any form of advertising without prior permission in writing from the Managing Editor.
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OPINION
The tide subsides
O
n this page throughout 2016, things seemed a bit more dire. After the Brexit referendum and the election of Donald Trump in the US, it seemed that the rising tide of right-wing populism would be too much for the levees to hold. Often, I found myself looking forward to fall of 2017, to the German elections, wondering if that would be neoliberalism’s last stand. It seemed at the time that Angela Merkel’s position was potentially not long for this world. In fact, it was France that showed how 2017 would unravel. “When French voters elected Emmanuel Macron as their President in May 2017, it ended fears that populism would unravel the EU. In the run-up to that election there appeared to be a chance that France would plump for the far-right candidate Marine Le Pen. Le Pen favoured a French exit from the Euro zone, the
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EU and NATO. Isolationist, antiimmigration rhetoric also failed to win the Dutch election in March 2017. The centre-right prime minister Mark Rutte won a comfortable victory. Austria said no to far-right presidential candidate Norbert Hofer in the December 2016 election,” said Philip Dicken, Head of European equities at Columbia Threadneedle Investments. In Germany, Angela Merkel’s reelection could be integral in restoring confidence in European markets. That, along with attractive valuations, a surge in manufacturing orders, and earnings growth signal that Europe is where investors should be looking. With the tide seeming to calm, Europe’s resilience is something the investors can once again expect. If we’ve learned anything, however, it’s that even a positive direction is not something that one should take for granted.
William Mullally
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NEWS & ANALYSIS
Robert Ansari, Head of MSCI for the Middle East
U
nder a new agreement, Nasdaq Dubai exchange will use MSCI’s regional indices to create derivative products to be traded on the Nasdaq Dubai’s derivatives platform. The exchange initially plans to develop futures contracts based on the MSCI UAE index.
The UAE equities market is one of the most important and vibrant in the Middle East and we are delighted to deepen our involvement with it as well as the markets of other regional countries. As the region’s international exchange with global investor links and an established futures market, Nasdaq Dubai is the ideal partner for this project through our licence agreement. Our indices are designed with a strong emphasis on liquidity and investability, and include many of the leading companies in the region.
T
he Dubai International Financial Centre (DIFC) has reaffirmed its commitment to developing the wealth management landscape for HNWI investors in the region.
Arif Amiri, Chief Executive Officer of DIFC Authority
DIFC has identified the wealth and asset management industry as having huge potential for growth over the next five years, which is why we are making a number of enhancements to our platform. From the DFSA’s recently updated Collective Fund Regime to potential legislative changes on the horizon, we believe Dubai and DIFC can play a central role in attracting assets to the region and preparing it for the future of the financial services industry.
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SAED ABU KARSH
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COVER INTERVIEW
Capital preservation, simplicity, and liquidity SAED ABU KARSH, CEO, ARK CAPITAL, SHARES THE FIRM’S INVESTMENT PHILOSOPHY AND SUCCESS STORY WITH WEALTH ARABIA
Tell me the story of Ark Capital. During the early years (2003-2008) of the equity boom in the GCC, there was an explosion of investor interest in equity and fixed income assets. The evolution of that interest led to substantial business growth in asset management and investment banking in the region. At that time, regional asset managers sought to capitalise on a trending market by providing regionally linked equity or fixed income funds. Activity in the non-regional space was minimal. Then, my partner and I were employed in a regional bank and our key observation was that while investor appetite was very much domestically focused, there was demand for exposure to non-domestic markets that was being supplied by London, Singapore or New York asset managers. In 2012, we decided to establish a firm in the DIFC which would specialise in
managing macro risk while focusing on FX; our core strength. Very few firms specialised in macro then due to competition from Europe and Asia. However, we felt that the region needed to provide clients with a regulated, alternative macro manager. Unlike many start-up managers in the region, we sought DIFC licensure on inception to provide transparency and promote regulatory oversight. What is Ark Capital's investment philosophy? Capital preservation, simplicity, and liquidity are the primary tenets of our philosophy and the mainstay of our value proposition. First and foremost, our goal is to protect our client assets while seeking to generate a return that is commensurate with the risk we take on their behalf. If we have learned anything since the subprime
mortgage crisis, it is that simpler investment ideas are better and easier to manage and explain than complex ones. We are not in the business of reinventing the wheel or betting the ranch through leverage. Unlike many managers vested in more illiquid assets, we aim to ensure that assets are liquid and accessible to our client without undue restrictions. How has your investment philosophy evolved over the years? As a firm, we implement an investment strategy employing both discretionary and systematic models which best delivers our investment philosophy. Over time, we have observed traditional macro strategies failing when applied to the wrong market environment. Therefore, accurate market assessment and re-assessment are critical to remaining flexible and adaptable to ...cont. overleaf
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COVER INTERVIEW
For a typical HNW individual, they may have their investments diversified in any of these assets domestically. Traditionally, these assets have been highly correlated, especially in this region. We offer an uncorrelated asset class which doesn’t move hand in hand with their existing investments. – Saed Abu Karsh, CEO, Ark Capital
cont. from page 11
dynamic market conditions. We learned early on not to cling to an opinion when the market behaved otherwise. One may be correct but their timing relatively wrong. Ultimately, risk trumps even the strongest of convictions. What is your approach towards risk management? How do you manage risk? We employ an Absolute Notional Limit and Stop-Loss Risk Management Framework. What this indicates is the amount of money that the fund’s singleperiod market loss should not exceed, with exposure capped at predefined limits. These Notional Exposure Limits (both total and per currency pair) are tiered on a scaled ladder whereby each strategy is allotted risk. In turn, this Notional Exposure Risk also translates into an Annual and either a Monthly or Weekly Absolute Stop Loss (strategy-dependent as strategies geared to a longer holding period require more flexible stop-loss limits), thus also capping capital at risk per period. The Strategies may move to higher or lower risk limits in relation to their performance, thus creating a dynamic risk allocation model. It’s important to outline that our firm’s process in the
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allocation of capital at risk whereby the deployment of various trading strategies which are designed to work optimally in varying market conditions implies that they act to offset total risk undertaken due to the fact that under any given conditions, a number of them will act as a hedge for the total exposure. This obviously provides an innate further layer of risk management. Furthermore, stop-losses are managed dynamically in real time while derivatives are used to increase leverage or to express an event-driven directional view. What differentiates Ark Capital from its competitors? Within the region, talent is restricted to existing asset management models focused primarily on regional themes. Ark Capital maintains a global orientation within the investment universe opportunity set. Our competitive advantage is generated by utilising a hybrid investment approach which effectively combines both macro and technical analytics while investing predominantly in products that are characterised by high levels of liquidity, low transaction costs, adequate transparency and low correlation to other asset classes. We are entrepreneurial and versatile,
quickly adapting to changing market forces without having to abandon our fundamental structure. As the market continues to evolve, these characteristics will be even more valuable. Often, we see asset managers who are restricted to specific asset classes suffer as entire sectors rise or fall. The correlations in falling markets, for some reason, seem to be much stronger than in rising markets. The ability to side step these asset traps is a key to success. Tell me more about your investor base in the region. Not unlike other regions, the region has a diverse set of investors. As such, their requirements and risk appetite are also very different. Our present base is HNW individuals who are looking to diversify away from pure equity, fixed income or real estate exposure. For a typical HNW individual, they may have their investments diversified in any of these assets domestically. Traditionally, these assets have been highly correlated, especially in this region. We offer an uncorrelated asset class which doesn’t move hand in hand with their existing investments.
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SAED ABU KARSH
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COVER INTERVIEW
The Ark Capital Macro FLEX Fund MINIMUM INVESTMENT $100,000 with subsequent investments by the same shareholder set at minimum lots of $50,000
JANNIS JANNIS NITSIOS, NITSIOS, CO-MANAGING CO-MANAGING CEO, CEO, LAURUS LAURUS CAPITAL CAPITAL
OVERVIEW
Ark Capital Management (Dubai) Limited and Laurus Capital GmbH are comanaging the Ark Capital Macro Flex Fund (inception 02/2015) employing advanced risk forecasting and pattern recognition techniques combined with a macro-focused discretionary overlay
PERFORMANCE (NET OF FEES) Inception-To-Date (08/2017): 10.28% Sharpe Ratio: 1.35 Volatility Range: 4% - 8%
INVESTOR BENEFITS
• Liquidity – NAV and performance reports issued on a weekly basis • No lock-up period • Low correlation to traditional asset classes
TYPE OF INVESTMENT
Investors may purchase Participating Shares in four distinct currency classes (USD, EUR, GBP, CHF) on a weekly basis as offered on each Subscription Day at the relevant Subscription Price for Participating Shares of that Class. The Fund is domiciled in the Cayman Islands and regulated by the Cayman Islands Monetary Authority (CIMA). A holder of Participating Shares may redeem some or all of his Participating Shares on a Redemption Day at the Net Asset Value per Participating Share as at such Redemption Day, or if such day is not a Valuation Day, as at the immediately preceding Valuation Day.
INVESTMENT PRODUCTS
Foreign Exchange (FX) is our primary investment focus since this asset class exemplifies the product characteristics mentioned in our core investment benefits. Our core FX positions are opportunistically supplemented with commodities, fixed income, and equity investments in order to enhance portfolio performance. Our strategy provides the flexibility to initiate long / short positions within a three-tier asset universe; enabling us to generate alpha during distinct market cycles.
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FEES CHARGED TO INVESTORS Management Fee: 1.5% per annum on an accrued basis Performance Fee: 20% on a HWM (High Water-Mark) basis
COUNTERPARTY INFORMATION Prime Broker/Custodian: Societe Generale UK Ltd. Administrator: Apex Fund Services Ltd. Auditor: KPMG
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PRIVATE BANKING
2017’s ‘Best Private Bank’ WEALTH ARABIA SPEAKS TO NAUSHID MITHANI, HEAD OF GLOBAL SOUTH ASIAN COMMUNITY, EUROPE, MIDDLE EAST AND AFRICA AND PRIVATE BANK HEAD UAE, STANDARD CHARTERED BANK, AFTER THEIR BIG WIN AT THE BANKER MIDDLE EAST INDUSTRY AWARDS
NAUSHID MITHANI
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What differentiates SCB's Private Banking offerings from its competitors? The core of our offering is advice and our open architecture approach, which is very much focused on giving our clients independent, unbiased and expert guidance to help grow and protect their wealth. We have a highly diverse, experienced and dedicated Investment Advisory team who maintains strong engagement across our client base to manage client portfolios dynamically. We continue to invest in our people, platform and systems. The ‘ADVICE’ Platform is connected to Reuters and provides weekly updates on the in-house views and also at a security level. We have various forums like the ‘Specific Asset Class’ forum that comprises of Investment Advisors globally contributing to the ideation pool which is then shared with clients. We also have an IASG (Investment Advisory Strategy Group) that is responsible for providing trade ideas, market updates/ outlook to our clients at regular intervals to keep our clients abreast with the financial market. The open architecture platform helps us to source best of breed products in the market especially across Management Investments involving funds and discretionary mandates. Our One Bank platform and favourable liquidity position enables us to provide a variety of product solutions for our clients.
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Winning the Award means a lot to us, especially the global recognition and increased visibility which comes along with it.
What have been the key initiatives you have implemented or changes you've made to improve those offerings over time? There has been a great deal of change, a main one being Project Enable. Project Enable is a massive transformation project underway in the bank. Enable will deliver a new, consolidated wealth platform that provides the frontline with automation and digitisation of processes, including pre-deal cheques, advisory, suitability, portfolio management, as well as reporting and order capture. Another system EQ Connect is a new order management system (OMS) for the front office to perform price discovery directly with issuers/counterparties for the most popular products—Equity Linked Notes (ELN), Fixed Coupon Notes (FCN), Daily Range Accrual Note (DRAN) and Over The Counter (OTC) equity derivatives such as accumulators and deccumulators. We have also managed to reduce turnaround time for vanilla credit approvals from several weeks to almost instantaneous. We have developed Step Stone to provide global opportunities on private equity. There has been inclusion of new funds into the hedge funds platform, thereby broadening our alternative offering platform. We have also expanded in derivative solutions across foreign exchange, equities and interest rate product categories. The Private Banking Academy was successfully launched where we have
completed the first INSEAD cohort and the programme with Fitch is ongoing. We have also launched a dedicated Client Service Manager and Team Leader career development framework to help build our talent pool internally. What does your win at the Banker Middle East Industry Awards mean for you? Winning the Award means a lot to us, especially the global recognition and increased visibility which comes along with it. The Award is an endorsement of the Private Banking teams’ efforts to provide best in class solutions for our clients. We are also optimistic about increased mind share of HNWIs/ UHNWIs as the top private bank in the region. What do you see as the future of private banking? Technological evolutions featuring artificial intelligence (AI), big data, the internet and so on are rapidly reshaping the global financial landscape. At the touch of a button, clients/ investors nowadays have unparalleled access to real time stock market data and financial investment news. The next generation HNWIs and UHNWIs are much more tech savvy and knowledgeable when it comes to investment opportunities and want to be more involved and informed of how yields are generated. Clients will eventually, if not already, move away from the conventional investment styles to state-
of-the-art services and bespoke advice. Responding to the rapidly digitalising market is therefore critical to the future growth of the private banking industry. According to research by Standard Chartered Private Bank and Economist Intelligence Unit, “The marriage of two nascent but increasingly positive popular concepts among Asian HNWIs –fintech and SRI (socially responsible investing) could lead to new and cost effective ways for private banks to offer impact investing opportunities. According to SCB research, the millennial wealth tier is pegged to grow rapidly and one to two per cent of the wealth created from this generation could be allocated towards impact investment strategies. AUM in SRI investments are estimated to grow from $77 billion to as much as $300-400 billion, globally, by 2020. With an increasing demand for fintech solutions and SRI investment opportunities in emerging markets, our presence in Asia, Africa and the Middle East enables us to provide our clients with bespoke solutions that are relevant to meet clients’ evolving needs. However, technology is not the only aspect that is transforming; client preferences and behaviours are changing at a similar rate and this necessitates private banks to revisit their approach and interaction that they have with their clients. It is therefore, increasingly important that private banks offer more personalised and bespoke services with a human touch.
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PRIVATE BANKING
Private banking: the start of a renaissance BENOÎT BARBEREAU, COO PRIVATE BANKING, UNION BANCAIRE PRIVÉE, WRITES ABOUT THE CHANGING STATE OF PRIVATE BANKING
T
he changes underway in the wealth management industry are often described as revolutions. It is true that those changes are disruptive in many ways. However, a look back at history shows that they can also be viewed more constructively, as a renaissance founded on a new regulatory environment and a shift in the market's geographical balance. “The man of the future will be the man with the longest memory,” according to Nietzsche. Indeed, remembering how the private banking industry has been affected by certain major shocks over time is very instructive. The term revolution is frequently used to describe the transformation sweeping the industry in recent years, in Switzerland and all markets that specialise in wealth management for non-resident clients. The revolution in banking secrecy, in regulation and in digital technology people are talking about is really spelling out the end of an era. However, we can also see these changes in a more constructive way, taking the view that they contain the seeds of a renaissance rather than the ingredients of a revolution. This semantic nuance is crucial, because these two distinct visions imply different strategies.
AN UNPRECEDENTED CRISIS OF CONFIDENCE
METSYS’ FAMED THE BANKER AND HIS WIFE, A RENAISSANCE CLASSIC, HOUSED IN THE LOUVRE IN PARIS.
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Revolutions are always preceded by a series of crises. The finance and wealth management industry has not been short of
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crises in the last ten years: huge trading losses and defective controls, the subprime crisis, financial fraud, and a spate of convictions for regulatory breaches relating to tax, to international sanctions and to money laundering rules. This exposing of dirty laundry has triggered an unprecedented crisis of confidence, forcing politicians to take a tougher line with regulators and banks. Before they actually lead to a revolution, crises often come hand in hand with denial, or blindness, which can give rise to inappropriate responses. When about to launch his revolutionary Model T in the early 20th century, did Henry Ford not used to say: “If I had asked people what they wanted, they would have said faster horses”? With hindsight, Switzerland's adoption of the Rubik agreements with the UK and Austria—an effort to maintain the doomed principle of banking secrecy—is a good example of that inability to foresee the effects of incipient change. When that change happens, it is invariably violent as powerful selective forces are unleashed. When climate or biological change happens, it causes the extinction or mutation of living organisms. When political upheaval or technological disruption occurs in the economic field, it similarly leads to disinvestment and restructuring. After a long period of growth, the Swiss banking industry has lost 20 per cent of its institutions in the last decade. More than 60 banks have closed, supporting the idea that a brutal revolution is taking place.
GEOGRAPHICAL AND ECONOMIC REBALANCING
However, it is possible to view these changes in another way, drawing parallels with the Renaissance. The great explorations of that era and the discovery of new continents led to a drastic shift in the world's geographical and economic balance: established powers declined while others seized opportunities to increase their influence. Switzerland has long been the centre of gravity for the world’s wealth management industry, attracting a large proportion of the savings generated by post-war economic growth in the West.
The rise of emerging economies, starting in the late 1990s, forced the industry to rethink its international strategy. Subsequently, tighter rules on accessing foreign markets and tougher cross-border policies transformed the competitive landscape and the scope of Swiss banks’ activity. Banks have responded to the new situation in various ways. Some have actively sought to consolidate the sector by making acquisitions while others have rapidly retrenched; some have gambled on organic growth in foreign countries while others have refocused on their core markets. The industry remains in flux and its metamorphosis is ongoing.
PERSONALISATION AND ADVICE: THE KEY CONCEPTS IN PRIVATE BANKS’ NEW VALUE CHAIN
The Renaissance provides another parallel, regarding new ways of disseminating knowledge. Gutenberg’s invention of the movable-type printing press allowed much broader access to knowledge, enabling new elites to form their own views of the world. Knowledge gradually shifted from ecclesiastical communities, which previously had a near-monopoly over the production of manuscripts and therefore the spreading of ideas, to universities. The profusion of digital innovations we have been seeing in the last couple of decades represents the greatest advance in the dissemination of information since Gutenberg. This time, the shift is taking place from producers to consumers, with an immediate impact on the banking industry, whose products are essentially intangible. Now that information is accessible to everyone, models that involve banks acting as intermediaries have lost their value. In an increasingly transparent competitive environment, the only way for banks to stand out is in the way they process and interpret data. As a result, personalisation and advice are the key concepts in the banking sector's new value proposition. In Italy, the Renaissance brought a clear break between mediaeval austerity and the advent of the humanist movement.
Similarly, current trends in compliance and taxation are giving rise to a new system of values that is transforming the culture of companies in the financial sector. After decades of banking secrecy, private banks are now required to have investigative skills. Increasingly, they are taking the place of the public authorities in terms of preventing risks relating to money laundering, tax fraud, embargos and international sanctions. The public authorities are appealing to banks’ sense of responsibility and ethics: examples are the ‘reason to know’ principle introduced by US tax legislation (FATCA) and adopted in automatic exchange of information (AEoI) directives.
CHANGE AS A SOURCE OF PROGRESS
Revolution or renaissance? For the wealth management sector, the concepts are two sides of the same coin, representing both aspects of any transformation, one disruptive, the other constructive. Seeing the changes currently underway as merely revolutionary means focusing on the threats, adopting defensive strategies, and adjusting actions in favour of short-term initiatives and other ‘quick wins’ such as restructuring and M&A transactions. As regards communication, the ‘tone at the top’ is often stark, conveying the need to resist an environment regarded as adverse. When change is portrayed as an inevitable by-product of decline, it is regarded as something merely to be endured. However, the current period of disruption is unlikely to last. The shift in the geographical balance and the new regulatory framework have laid the foundations for a renaissance in the industry. Banks that have carried out fundamental reforms are already well positioned to benefit from that renaissance over the long term. It is time for banks to reengage with themes that have been overlooked in recent years—such as innovation and partnerships—as part of their strategies. Communication is also crucial: banks should show that they are embracing change and see it as an opportunity for progress, as it was in the Renaissance era.
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WEALTH MANAGEMENT
Does inheritance tax concern you? If not, maybe it should CHRIS FERGUSON, CEO, CREDENCE INTERNATIONAL, WRITES TO THE GULF’S UK EXPATRIATE’S ABOUT AN ISSUE FACING THEIR WEALTH
T
here are few taxes in life that are ‘optional’. Inheritance tax (IHT) is one of them, if sensible, qualified advice is received at the right time. IHT can cost your family and loved ones a considerable sum of money in the event of your death. However, with a little forward planning, it is possible to legitimately avoid this tax. Therefore, it is sensible to understand the basics of IHT, and start planning early. Here’s a brief look at how IHT works in the UK, and some ways it can be minimised.
WHAT IS INHERITANCE TAX (IHT)?
IHT is a tax payable by a British domiciled individual on worldwide assets in the event of their death. It is chargeable at a rate of 40 per cent on all assets over the current Nil Rate Band (NRB) which is GBP 325,000. For married couple or those in a civil partnership, each receives the NRB thus increasing the threshold to GBP 650,000. The NRB has not changed since 2009 and is fixed at GBP 325,000 until 2021. Whereas in the past, IHT was largely
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aimed at high net worth individuals, more and more UK citizens are now paying significant IHT. Indeed, UK IHT receipts increased from GBP 2.3 billion in 2009/2010, to a staggering GBP 4.8 billion in 2016/2017, according to figures from Statista. This is expected to increase to GBP 5.8 billion 2018/2019. London and the South-East account for a high proportion of IHT receipts, according to The Telegraph, which is not surprising, given that much of the UK’s property and business wealth is concentrated in these areas.
CAN YOU CHANGE YOUR DOMICILE TO AVOID PAYING IHT
Your domicile is a complex area and often one which is misunderstood. Whilst many people who have lived abroad and have been non-resident for many years consider themselves no longer UK domiciled, the reality is very different. Being non-resident certainly does NOT imply non-domicile and it is your domicile that determines where you pay IHT and not your residency.
At birth, you receive your domicile of origin from your father (or mother if your parents were not married at the time). This will remain unless your parents lived abroad and changed their own domicile by choice before you were aged 16–then you would also change to domicile of dependency. After age 16, your domicile depends on your own circumstances. British expats may live abroad for many years without losing their UK domicile if they have not taken sufficient steps to break their ties with the UK.
KEY UK INHERITANCE TAX RULES WORTH KNOWING
Inheritance tax rules are complex, but it's worth knowing some of the basics. If you are married or in a civil partnership, and your estate is worth less than GBP 325,000, any unused threshold can be added to your partner’s threshold when you die. No IHT is payable if you pass your home to your spouse or civil partner when you die. However, if the home is left to another person in your will, it will count towards the value of the estate. If you give away your home
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POTENTIAL TAX PAYABLE – MARRIED COUPLES (IH = INHERITANCE TAX)
SOURCE: CREDENCE INTERNATIONAL
to your children or grandchildren, your threshold will increase to GBP 425,000. (This is known as the residence NRB and basically adds GBP 100,000 to the NRB if you pass to your direct descendants). In relation to gifts, a gift made seven years or more before death are known as a ‘potentially exempt transfers’ (PETs) and will not be taxable. Gifts that are not exempt from IHT will be charged 40 per cent tax if given in the three years before you die. Gifts made three to seven years before your death will be taxed on a sliding scale. However, this only applies to larger gifts as gifts smaller than the NRB given within the seven years prior to death will simply use up all or part of the NRB allowance. There is no IHT to pay on gifts between spouses or civil partners, if they reside in the UK permanently, and you can also currently give away GBP 3,000 worth of gifts each tax year, as an ‘annual exemption,’ and unused annual exemptions can be carried forward for one year. Any assets either gifted to or left in a will to a registered charity, will also avoid IHT on death.
However, other gifts are likely to be counted towards the value of your estate, and the beneficiaries of gifts will be charged IHT if you give away more than GBP 325,000 in the seven years before your death. It’s worth noting that a loss in value when a possession is transferred is counted as a gift. For example, if you sold your property to your child at a 50 per cent discount to market value, the difference between the sale price and market value would be classed as a gift.
• Gift to family members or friends • Transfer assets into Trust • Leave a legacy to charity • Take out some life insurance When gifting away assets, there are some ways to continue to see the benefits of that asset including a regular retirement income—for this, we recommend you seek professional advice. Credence International is a wealth management and financial advisory firm established to create a unique private client proposition.
CAN YOU AVOID PAYING IHT?
Our clients are at the core of everything we do and they benefit from a first-class experience that revolves around their needs and aspirations. We ensure our clients success, by fully understanding their needs and aligning our interests with theirs. Our clients value the close communication throughout the relationship and the educational framework we provide so they fully understand the financial decisions they make. This leads to positive outcomes and long fruitful relationships.
The simple answer is yes if you take professional, qualified financial advice in advance. For most people, this would be during their 50’s or 60’s rather than leaving it until much later in life when surviving a further seven years might be unlikely.
WHAT ARE THE SOLUTIONS?
Whilst IHT solutions are very much tailored to the needs of the individual, there are some simple steps you can take to significantly reduce the impact: • Make a gift to a partner
Visit www.credence-international.com for more information.
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INVESTMENT
HOW HOW LONG LONG CAN CAN THE THE BULL BULL MARKET MARKET CONTINUE? CONTINUE?
Keeping investors on their toes…
TARIQ QAQISH, MANAGING DIRECTOR–ASSET MANAGEMENT AT MENACORP, SHARES HIS PROJECTIONS FOR THE REMAINING MONTHS OF 2017 22
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The longest bull market of over eight years with no meaningful correction and a return of 270 per cent in the S&P 500 is keeping everybody on their toes. We totally understand investors’ reluctance to navigate in such environment as cheap money continues to flow and drive equity markets to all time high. Although unpredictable events such as the election shakings in USA and France, military aggravations between North Korea and USA, and the ongoing Brexit
would have shaken the markets, yet all went unnoticed. Despite all of that, and the challenging conditions around the globe, economic outlook is still showing constant signs of growth. So why fight with the market when you can continue to ride the wave until it lasts. Frequently investors pose the question: when do we expect a market crash? Well Janet Yellen Fed’s Chair and Christine Lagarde IMF’s Managing Director made it less embarrassing for me
to answer the question. When speaking during a Q&A event with British Academy President Lord Nicholas Stern in London end of June 2017, Yellen commented: "Would I say there will never ever be another financial crisis? Probably that would be going too far. But I do think we're much safer, and I hope that it will not be in our lifetimes, and I do not believe it will be.” Lagarde responded, “I plan on having a long life and I hope Yellen does ...cont. overleaf
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INVESTMENT
cont. from page 23
momentum and they do not foresee significant undesirable shift in global economic activities for the short term (six to nine months). Three years back, lots of analysts called a hard landing for the Chinese economy, however its economy appears to be robust and continues to grow at healthy rate of above six per cent.
THE US
TARIQ TARIQ QAQISH, QAQISH, MANAGING MANAGING DIRECTOR—ASSET DIRECTOR—ASSET MANAGEMANAGEMENT, MENT, MENACORP MENACORP
too, so I would not absolutely bet on that because there are cycles that we have seen over the past decade and I would not exclude that.” Lagarde made it more interesting and shaded more light on the factors that will influence such crash. She added, “Where it will come from, what form it takes, how international and broad-based it will be is to be seen, and typically the crisis never comes from where we expect it.” Jokes aside, the recovery in the global economy is gaining steam backed by both advanced economies and emergingmarket countries due to healthy demand and rising consumer spending.
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World GDP is expected to grow to 3.5 per cent in 2017 and 3.6 per cent in 2018 compared to 3.1 per cent in 2016 as per IMF’s July forecasts. Emerging market and developing economies is expected to grow to 4.5 per cent this year and 4.8 per cent in 2018 from 4.1 per cent in 2016. Key to successful asset allocation strategy is to monitor and understand leading indicators (not lagging) such as orders and inventory changes, financial market indicators, business confidence which helps determined better market cycles. By looking at OECD latest report, their composite leading indicators continue to point to stable growth
Valuation wise, it’s not a surprise to anyone, looking at the US, its market valuations seems stretched and above its 20 years medium by 15 per cent, the S&P 500 forward P/E is now trading at 19x as of 7 August 2017. However, we believe if Trump manages to pass the tax reforms and most importantly to convince the Congress to agree smoothly in September on lifting the debt ceiling to the desired level (cap) to implement the infrastructure spending plans, it would, in my opinion, continue the positive momentum and limit major setback. Failing to do so could lead to critical consequences on global economies and the financial markets. Going into the second half of 2017, we expect the Fed to continue to raise interest rates over the next few years as long as inflation keeps ticking up and no recession occurs. I believe the US will keep all options open when deciding to raise interest rates and will react to any events the economy may face and keep their eyes glued to capital markets volatility.
NORTH KOREA
The North Korea tension is early to judge but it seems that Trump’s strong pressure on China and Russia to use its economic leverage to halt North Korea’s nuclear weapons development is somehow working. The administration managed to pass a UN resolution by all 15 UN Security Council members to pass economic sanctions on North Korea that aim to cut its exports by about a $1 billion a year. This is a big shift in China’s foreign policy and could curb potential conflict that will leave major consequences to the world.
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Source: MENACORP
BREXIT
A number of headwinds are facing the UK economy and signs of losing momentum as the impact of Brexit vote started to punch the economy. It is expected that the negotiations with the EU will take a long time which creates more uncertainties with regards to the future of trade, impact on the pound and its effect on inflation and disposable income. There is no disagreement that the financial sector will be impacted drastically; Deutsche Bank is said to move its trading desk from London to Frankfurt which indicates the loss of hundreds of jobs with thousands of clients.
GULF REGION
The last few years witnessed a major shift in the Middle East & North Africa (MENA) region changing the face of several countries.
A region that was blessed with natural resources from historic places to massive oil reserves supported by a young population has gone into huge turbulence that left few countries on their feet. Prior to the so called Arab Spring, the Gulf region’s sovereign wealth funds had access to more than $2 trillion attributed to high oil prices. Since 2014, oil dropped from its high of $125/barrel (Brent) to as low as $28/barrel, recording a 78 per cent drop in lost revenues for countries that were highly dependent on oil which pushed major fiscal and structural reforms to adapt to the new norm. The rebound in oil prices to $50 level and political stability in major economies such as Egypt are expected to boost economic growth of the MENA region to 2.9 per cent in 2018 according to World Bank estimates. Countries that are adapting to world changes by riding
the technological development wave will have a better chance for a more resilient economy and sustainable diversity. A great example is the UAE where their leadership adapted swiftly to market changes and managed to continue to attract a lion’s share (approximately 50 per cent) of total foreign direct investments into the Gulf region.
CONCLUSION
The second half of 2017 will witness a rolling back of some of the cheap funds circulating in the market and the shrinking of the Fed’s $4.5 trillion balance sheets which would put a cap on further market rally. For the medium term, downside risk would be limited as policy makers will continue to adapt to a flexible tactic supported by low interest rate environment. Markets can stay expensive for a long time, but this is what I learned—stay invested.
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INVESTMENT
Making the most of the bear market in oil HUSSEIN SAYED, CHIEF MARKET STRATEGIST, FXTM WRITES FOR WEALTH ARABIA ABOUT HOW INVESTORS SHOULD APPROACH THE COMMODITY
C
HUSSEIN HUSSEIN SAYED, SAYED, CHIEF CHIEF MARKET MARKET STRATEGIST, STRATEGIST, FXTM FXTM
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rude oil's struggle to stabilise above $55 a barrel this year caps almost three years of unremitting pressure for the commodity. The troubles for oil started in the middle of 2014, when the price started a dizzyingly long fall from a high of $110 per barrel. By the first few months of 2015, over 50 per cent of the 2014 values had been wiped off the oil price, which fell to $55 per barrel. The lowest point was seen at the beginning of 2016, when the price bottomed out around $37 per barrel. The message could not be clearer; buying impetus was drowning in the global glut. It took a long time for oil-producing countries to react and form strategies. Between mid-2014 and the beginning of 2017, the main reaction to oil's fall from grace was surprise and confusion. There was little in the way of concrete action to stem the losses. The world's mature and emerging economies had their hands full dealing with the fallout of long years of recession. When the slowdown began to
bite in 2007 and 2008, the US, Russia, Europe, the UK and GCC regions all faced unemployment. Financial and sovereign debt crises triggered economic slumps. All hands went on the monetary policy deck to save economies, financial systems, and national assets. When most of the fires were extinguished, attention turned to recovering as quickly as possible. There was such an uproar that the emerging crisis in the oil markets went under the radar until it was almost too late. Some might leave out the 'almost' but I'm not one of them. At first, the fall in oil prices was put down to a simple oversupply due to the limited demand. That is the main explanation, but other factors also played into the complex equation. Lower inflation also extended the period of relative stagnation for black gold. The USD started strengthening during 2016 and the first half of 2017 on the back of US interest rate hikes. This also held back oil's appreciation. When OPEC decided to limit supplies at the end of 2016, the markets were more
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than ready. Investors welcomed the move to re-balance the oil markets, which was good for sentiment. Fundamentals hadn't changed significantly and the rifts between OPEC members caused doubts over compliance. Still, demand perked up as confidence trickled back into the commodity markets. OPEC's intervention supported a long, hard climb up to the $50-$55 per barrel range. By the first quarter of 2017, Brent oil was taking short runs over $55 per barrel. This encouraged more confidence even amid the prevailing mood of profit-taking. Confidence in oil price recovery seems to be building, so just how long is there left for the crude oil bear market? It's been in bearish territory for nearly three years. Everyone is asking the question: when can we see significant support for growth in oil prices? The picture has changed since the summer. Oil prices have appreciated and it could be time to look at what happens when the bear market ends and how to make the best of what remains. Currently, there are three main blocks to a sustained recovery in oil prices. One block is the rapid recovery in US shale production. The other obstacle is lower inflation. The third is the level of global demand. OPEC's stance on the over-supply isn't a problem anymore. The organisation is now sending the right signals. After all, it has renewed its commitment to production cuts. Granted, it doesn't help that the cuts are undermined by well-known lapses in compliance. Still, investors are by-and-large convinced that the oil cartel has realised the urgency of the situation. Taking US shale first, the industry took a temporary hit from hurricane damage. This doesn't mean that there will be a deviation from the energy independence line taken by the Trump government. Three-quarters of a million barrels were wiped off the production lines in the US, so there is a significant amount of work to be done. Industry reports show that US production facilities are coming back into action one by one. Close to 325,000 barrels per day were restored to markets when Deer Park Refinery restarted. The number of oil rigs was trimmed by seven
to 749 in the week ending September 15th. This is the lowest level since June but given the overriding trend prior to the hurricane damage, the cut is likely to be short term. Inflation is rising, the latest reading of 1.9 per cent in the US is encouraging. If inflation growth is sustained, it's likely to feed back into energy prices in the long term. The main reason for the drop in inflation was low energy prices. So, it's reasonable to expect the improvement of one would mean the improvement of the other. Based on more optimistic global demand growth expectations, the IMF has updated its outlook on oil, raising the average price to $52 per barrel for 2018. Then again, global growth isn't expected to boom in the medium term. So, what does the smart money say about investing in oil? Traders can look at the situation in two ways. In one scenario, the bear
market continues for the next couple of years and profit taking is the key strategy. In the other scenario, there will be a sharp upswing in the price. This is a possibility as fundamentals improve towards the end of 2018 and expected drawdown levels approach. Meaning that buying when prices are low and selling when high would be another key strategy. Timing would be of the essence in this scenario. Even though we've seen improvements, the oil markets are leaning towards bearishness. Realistically, US shale creates a lot of competition for oil-producing countries and blocs, so supply is set to be plentiful for the foreseeable future. Even in a re-balanced market, the $55-$65 range could be the most realistic expectation through to 2020. So, making the most of the bear market could be the best approach we can hope for, barring any unexpected developments.
...cont. overleaf
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INVESTMENT
Is the bitcoin about to crash? cont. from page 27 23
Bitcoin has been big news in the last year and in September, it raised the stakes once again when it reached a record high of $5000 earlier this month, and then promptly went into a freefall and lost almost 40 per cent of its value, confirming what some naysayers have been claiming for years. The selloff began when Chinese authorities banned the execution of ICOs “Initial Coin Offerings” within its borders. It received another hit when regulators said they planned to shut down exchanges on which the cryptocurrency is traded. JP Morgan Chase CEO, Jamie Dimond, also attracted much attention after claiming to CNBC that the cryptocurrency is a fraud and is in valuation bubble that will burst. There is no doubt that disruptive developments in technology leads to speculative bubbles. The dot-com bubble in 1999 might be the closest to investors’ memory, where many companies failed completely, and others lost more than 80 per cent of their value–taking investors with them. Throughout history there have been bubbles where investors were swept away with the promise of great riches, so are cryptos any different? It seems the jury is still in its early stages of debate and will face lots of obstacles and challenges before a definitive answer emerges. While many online businesses seem to accept Bitcoin as a method of payment, government’s primary concern is related to taxation, and the lack of control over the currency flows. Some traditional banks are also feeling the threat when it comes to how cryptocurrencies are transacted, specifically their lack of dependence on middle-men- banks potentially stand to lose an important
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source of income 'transfer fees'. These factors will certainly lead to government intervention to kill, or at lease curb the growing global shift towards a decentralised financial ecosystem. However, two big questions remain, do governments have enough power to stop the growth of crypto’s and will the bubble finally burst, if it is indeed a bubble? Bitcoin is not controlled by a single organisation, it has no centre to attack, and there is no way for regulators to stop people from transacting bitcoins over the web. The only way to stop them would be to shut down the internet. Governments could ban the use of bitcoin as a method of payment, but there is no way to shut down the system itself. Actions taken by the Chinese government will likely be a temporary setback, because even this traditionally conservative entity is looking at developing a national cryptocurrency, so it’s not all bad news. The more governments intervene, the more attention they will draw to cryptocurrencies and the more individuals will show interest. As for the price, it’s almost impossible to predict it’s future. Although bitcoin has a finite supply, it has no intrinsic value. This means you cannot relate the value of bitcoins to any other asset or an economic metric. Whether it’s going to reach $10,000 next year or drop back below $1,000 is a
wild guess at best, but it’s certainly going to be very volatile in the next couple of years.
For more information, please visit the FXTM website at http://fxtm.biz/2c2Z8sF.
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PHOTO:SHUTTERSTOCK/BY ADRIANTODAY
Second Nationality?
CS Global Partners is an industry-leading legal advisory firm specialising in citizenship by investment and investor immigration solutions. The firm is comprised of an expert global team committed to assisting international businesspersons and their families in achieving increased mobility, security, and protection through second citizenship. Dubai Office: 3504, Burlington Tower, Business Bay, Dubai T: +971 4 226 1704 • M: +971 56 892 9303 • @: dubai@csglobalpartners.com Farsi speakers, please contact: +971 54 3455 833 www.csglobalpartners.com
ISSUE FORTY THREE - OCTOBER - NOVEMBER 2017
LONDON • ZURICH • HONG KONG • BEIJING • DUBAI • NEW DELHI • LAGOS • WINDHOEK • ST KITTS & NEVIS • SINGAPORE
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INVESTMENT
Bringing ‘prestige’
to Shari’ah-compliant investment MOHAMED SALAH, HEAD OF CORPORATE & WEALTH MANAGEMENT AT NATIONAL BONDS SPOKE WITH WEALTH ARABIA ABOUT PRESTIGE, ITS PRODUCT AIMED AT HNWIS What led to the launch of Prestige? National Bonds was first launched to meet a demand for a service that rewarded investors. Since then, we have continually developed tailored products that meet the ever-changing needs of our customers. Launched in 2016, Prestige is unique offering and the first of its kind in the UAE. The product was designed by our Wealth Management team with the aim of providing high net worth individuals with investment advice and opportunities within the National Bonds Corporate (NBC) portfolio. Private wealth in the UAE is growing exponentially and is expected to reach $1 trillion by 2020. With this in mind, Prestige aims to provide customers with guidance around risk management and responsible investments to help achieve sustainable financial security.
MOHAMED SALAH
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How does Prestige differ from other similar offerings in the market? Prestige combines expert financial advice with industry-leading products. It offers investors a tailored and personal service. The programme consists of three categories: Prestige Gold offers customers a portfolio of beneficial services and access to Wealth Managers who are among the industry’s best. Our Gold Members enjoy the highest level of service in the region and is only open to customers who have invested a minimum of AED 350,000 with us.
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The product was designed by our Wealth Management team with the aim of providing high net worth individuals with investment advice and opportunities within the National Bonds Corporate (NBC) portfolio. – Mohamed Salah
Prestige Silver is only available to customers who have invested a minimum of AED 150,000 with us. We offer our Silver members services that include exclusive investment opportunities and direct access to our world class relationship managers. Bronze Membership is only available to customers who have invested a minimum of AED 50,000. Our collective experience and wealth of local knowledge means that our Bronze Members have access to unrivalled financial advice. In addition, clients across all tiers have access to value-added services such as a pick-up and drop-off service for cheques and application services, free financial planning, advisory services and same day processing. Prestige also offers access to a dedicated Prestige desk at all National Bonds corporation branches. One of the products unique selling points is the ability to invest in our real estate inventory that offers investors the best payment plan in the UAE: a 10 per cent down payment followed by 90 per cent over a seven years payment plan post-handover. How can executives and entrepreneurs cultivate a savings culture in the UAE market? Education is key to creating a savings culture and we believe employers play an important role in helping to raise awareness
of Financial Planning and regular savings programmes in the UAE. As a business, we are passionate about educating the public on the importance of saving. To do this, we play a major role in educating residents and nationals on financial literacy. For example, we host financial workshops for companies on the saving and investment outlook in the UAE and compile an annual National Bonds Savings Index, which analyses the spending savings and spending habits of UAE residents. However it is not just about education. We also have a series of programmes tailored to suit all investor needs. Take our Employee Savings Programme (ESP), this was created for companies as a way to retain employee talent, enhance employee wellbeing and increase staff retention. Nationals Bonds will continue to raise awareness of Shari'ah-compliant savings and investments tools to residents and nationals across the emirates with a view to increase the number of regular investors in the UAE. Through financial instruments and planning, we aim to help boost the national economy and help investors achieve sustainable financial stability and security. What are the company’s plans moving forward? As mentioned, we are committed to increasing the number of regular
investors in the UAE and in line with the government’s vision; we are striving to help foster a savings culture through education and awareness. At National Bonds, we are continually adjusting our various offerings to suit the needs of our customers; the environment and the ever-changing market we live in. There are so many options available when it comes to savings and investment and our mission is to ensure our customers take the right steps to achieve their goals. This means providing them with the best advice, a successful financial plan and access to a wide-range of products. Our customers sit at the heart of everything we do and drive our business goals. Our mission is simple. We want to continue to provide excellent customers service. For example, we are currently working to develop cheque deposits and collection services. We have also adopted a digital-first approach, seen in a number of enhancements made to our digital platforms. Our customer-centric approach will benefit all our customers, those who seek financial advice in our physical branches and those who want to carry out transactions via online platforms on the go. Our digital platforms will play a key role in this, as it will allow us to reach our customers faster and provide customers with a seamless customer journey, end to end.
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INVESTMENT
Filling the post-crisis void EMAD MANSOUR, CEO AND FOUNDER, AUDACIA CAPITAL, EXPLAINS HIS FIRM’S METHODOLOGY AND INVESTMENT STRATEGY TO WEALTH ARABIA
How did Audacia come to be? The last financial crisis of 2008-2009 has really wreaked havoc on the investment banking sector of the whole region. The havoc that I refer to is about exposing a lot of the weaknesses in the organisations, companies and investment banks that were operating at that time. A lot of those have disappeared— some of them were overleveraged, some did not have the strength of capital to survive, and some just fizzled away. When the dust settled in 2011-2013, the investing industry had very few players. The ones that survived may have done so in a weaker position than they were before the crisis. That presented an opportunity to me to say that ‘now is the right time to start an organisation that could possibly grow to become a prominent player in the investment banking industry in the region’. Coupled with that, a lot of the big boys pulled out of the region, or scaled down. All the more reason for a local player to come
fill that void. Obviously that void cannot be filled in a year or two—it takes time to build an organisation, a franchise, an investor base, and to validate your business model. There are so many stakeholders, so many constituencies that you need to connect with to become a region-wide fully-fledged investment banking organisation. It was at that time that you look at the battle field and you see a lot of corpses and badly wounded organisations limping away, and it’s we thought that would be an opportunity. What is different about your strategy? We do not have tools or differentiating factors from a lot of the other people. What differentiates one organisation from another is your ability to be able to read the market, and read market trends as accurately as possible so that you can steer your organisation in the right direction. That can only happen through two things. One is collaboration—being part
of a team where strategic decisions can be made collectively. We have a good management team, as well as a good board that all come from different walks of life and they all contribute towards that strategic steering of that organisation. Second is market experience. It comes from having been through several cycles before. I’ve been in this region for over 25 years, so I’ve seen many different events that impact on our industry. These two things combined together can direct put you in the right direction all the time. Success is not a point in time, success is a journey. We have done well so far, but we are not out of the woods yet. We continue to build it year after year. that is what success is for us. We aim to become a regional investment bank that is known for quality, and professionalism. We know that is not something we can achieve overnight—it’s going to take a long time. But we will take all the time that it takes. We are in no rush. ...cont. on page 34
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Untitled
Monday 27th November 2017 | Godolphin Ballroom | Jumeirah Emirates Towers
Knowledge partner
Supported by
Organised by
To register your interest in attending, please visit out website, drop us an email or give us a call.
www.wealtharabia2017.net
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cont. from page 32
Tell me more about your investment strategy and how you achieve the returns that you’re looking for. We have two pillars—direct investments and international real estate. When it comes to direct investments, it’s targeted only to acquisitions in the region. We focus on certain sectors that are demographically driven—healthcare, education and food and beverage. Direct investments are a sure bet in emerging markets. If you have a demographically-driven play in these markets, you cannot go wrong. The trick is to pick the winners in these industries, and there is no know-how into that, it’s about having the nose for it. You can build financial models, analyse numbers, do due diligence but at the end of the day it is more about instinct. We typically invest in mature companies that are well established and have successful financial performance track records. We’ve done one transaction in the early stage, but it is not our main business model.
Direct investments are a sure bet in emerging markets. If you have a demographicallydriven play in these markets, you cannot go wrong. – Emad Mansour, CEO and Founder, Audacia Capital
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What’s your strategy in terms of international real estate investment? We have a very large constituency of investors that feel that an asset class that gives them stable recurring revenues is an important piece of their portfolio allocation. In any sensible portfolio allocation, you have to have different classes, different degrees of risk. International real estate is typically made up of assets with secure cash-flow with long-term contracts, and a very high predictability. It’s usually a single digit yield on investment, but it’s an important part of any portfolio allocation. A lot of our investors require this and we have the capabilities and the network to be able to offer attractive opportunities within that asset class. Risk comes from direct investment, and stability comes from the real estate investment.
EMAD MANSOUR HAS TAKEN HIS DIVERSE EXPERIENCE AND APPLIED IT TO A NEW STRATEGY AT AUDACIA CAPITAL.
As you’re getting involved with mature businesses, how hands on do you get to ensure that there is going to be a return at the end of the investment? We need to be confident from the beginning that there is a clear strategy for growth that is achievable and realistic. How involved we get with these companies? As involved as they want us to be. The minimum involvement is strategic decision making—high-level management and board-level decision making. Our starting point when we make an acquisition is identifying a clear path to growth and an existing management team that has the attitude to be able to deliver that growth. If we do not believe in the management, we do not go in at all. We focus on growth, we do not focus on turn-around and management change. From day one, we do a bit of tweaking, but from then on, we focus on achieving growth. Making money is not about financial engineering, it’s not about turning around a company, it’s about achieving that delta— the difference between performance of a company today, and the performance of a company in five years time. In that difference we make our money.
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Late-cycle behaviour RICHARD A JOHNSON, MANAGING DIRECTOR—HEAD OF BUSINESS DEVELOPMENT, REAL ESTATE & PRIVATE MARKETS AND PAUL GUEST, EXECUTIVE DIRECTOR—LEAD STRATEGIST, REAL ESTATE & PRIVATE MARKETS, UBS ASSET MANAGEMENT, ANALYSE REAL ESTATE INVESTMENT IN 2017 36
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PHOTO:SHUTTERSTOCK/BY DMITRY BIRIN
VOLUMES ARE NOW DOWN FROM THEIR PEAK BUT REMAIN ROBUST.
Real estate markets: where are we now? The resilient appeal of real estate is driven by a number of factors: low bond yields, the hunt for steady income and the importance of asset diversification and need for stability. Unconventional monetary policies in the form of quantitative easing and ultra-low interest rates have, in recent years, boosted the relative appeal of the asset class, while the consequential increase in capital flows have caused a surge in transaction volumes. Volumes are now down from their peak but remain robust.
This continued strength reflects a reluctance to let go of assets given uncertainty as to how to re-allocate capital attractively. Many markets present a price gap between buyers and sellers, with owners of real estate, even with leverage, generally under no pressure to sell while buyers are not willing to pay ever higher prices given the interest rate outlook. Returns—where are we going? In many ways a slowdown in transaction activity and price growth is positive for the
REAL ESTATE
market. The increasing rents we’re commonly seeing will gradually enable higher purchase prices justified by the income outlook. Many US and European markets have eased back from the above long term returns they had been delivering and now reflect, in yield terms, a level closer to the long term average. Whilst expensive in absolute terms, relative to bonds these yields are still generally attractive. Total returns globally have slowed as a result of reduced yield compression and capital value growth. The supply side response, with minor exceptions, has been muted in this cycle. In part this is due to lending regulation as well as concern over the extent and strength of the recovery. In the best locations, this means rental growth has been accelerating with returns consequently driven primarily by income. Differentiation in projected total return between markets and sectors is narrowing as the cycle draws on—unsurprising given that the period of rapid yield compression is ending. Income returns tend to be quite stable over time both within and across markets, while capital growth can vary tremendously depending on a market's stage in the cycle. Property performance has changed; in addition to slowing capital value growth and reduced volumes, fundraising new capital can be more challenging. The shift in outlook to rising interest rates begs the question how property will compare to other asset classes over the next cycle. This time it's different? Historically, rising interest rates have coincided with strengthening property returns, thanks to an improving economy and rising rents. This time it's different: property returns are slowing as rates rise because a period of exceptional capital value growth driven by ultra-low interest rates and excess liquidity has come to an end. There are three reasons why this latest 'golden age' of property will not end in tears. These are supply and debt; quality, and; demand and diversification. We have seen construction much more subdued this cycle than previously, largely thanks to a lack of development finance and uncertainty about the economic recovery’s ...cont. overleaf
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REAL ESTATE
Therefore, maintaining a portfolio that is broadly neutral vis-à-vis your benchmark provides downside protection in the face of an uncertain future. We would argue in favour of being prudent and diversified, and focus on protection or enhancement of value rather than seeking alpha. Global trends indicate intense demand for assets in the major markets whilst competitive nature is driving capital into regional markets and alternative sectors rather than to markets perceived as unstable.
RICHARD A A JOHNSON, JOHNSON, MANAGING MANAGING RICHARD DIRECTOR—HEAD OF OF BUSINESS BUSINESS DIRECTOR—HEAD DEVELOPMENT, REAL REAL ESTATE ESTATE & & PRIVATE PRIVATE DEVELOPMENT, MARKETS, UBS UBS ASSET ASSET MANAGEMENT MANAGEMENT MARKETS,
PAUL GUEST, GUEST, EXECUTIVE EXECUTIVE DIRECDIRECPAUL TOR—LEAD STRATEGIST, STRATEGIST, REAL REAL TOR—LEAD ESTATE & & PRIVATE PRIVATE MARKETS, MARKETS, ESTATE UBS ASSET ASSET MANAGEMENT MANAGEMENT UBS
cont. from page 37
resilience. This has led to historically low vacancy rates in some markets, coupled with much less leverage than was common pre2007. A fall in values today is less likely to result in negative equity and fire sales than post 2007. The spread between high and lower quality real estate is wide compared to the last cycle. Investors rarely overpay for risky real estate, which has simply been, and remains, incapable of financing. The spread between prime real estate and the risk free rate is equal to or above its long-term average, meaning there is some cushion to absorb higher rates without necessarily eroding values. Real estate will not be immune to changes in the interest rate or inflationary dynamic, but there is more evidence in favour of a gradual adjustment than a sudden correction. We have long emphasised, for investors concentrating on a single city or country portfolio, that this is the time to focus on enhancing income and driving value growth. Real estate asset management may actually require proactive management again; this can be done through a variety of asset-specific initiatives, such as value-add redevelopment, which can make sense in locations where supply is tight. These strategies improve fund
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performance over the short term and should enhance value, whether to sell or hold, for the medium term. What else is out there? We expect higher inflation and a rise in market interest rates, but at a more moderate level than previously. In today's environment, however, there are considerable tail risks, whether linked to politics, regulation or economics. Some tails are fatter than others, but the result is a wide range in possible outcomes even for the most transparent markets. Furthermore, some low probability events, like a currency collapse, have huge downsides for property performance so, whilst unlikely, their riskweighted impact is significant. These sizeable tail risks argue in favour of broad diversification, especially at a time when the breadth of performance outcomes is narrowing. Market and sector allocations need to be actively considered. This is true at all points of the cycle, but when the gap in potential performance is wider, picking outperformers is relatively easier. When the gap is narrow, the risk of being wrongly positioned for such gains; i.e. overweight in an underperforming market, is much larger.
What comes next? The shortage of good quality real estate on the market has created record levels of dry powder which has resulted in capital being driven into niche sectors, many of which have a sound rationale but which lack the depth to accommodate the levels of liquidity targeting them. It has also driven an increase in build-to-core strategies, with even traditional institutional investors looking to build and hold in markets where they are having trouble accessing core. Evidence to date suggests that emerging markets will not soak up this excess capital; transaction volumes in Russia, Brazil and India are not appreciably growing, whilst in China the changes in volumes are driven more by shifts in government policy than in any top-down view on emerging markets. What we are seeing, which is typical of late cycle behaviour, is an increase in opportunistic funds looking at frontier markets—e.g. Sub Saharan Africa, residential in Central Asia. There is some rationale for these strategies but the relatively good present day liquidity may evaporate if the cycle turns, and these may be the first markets to go, regardless of the underlying macro rationale. The future interest rate outlook presents a challenge, particularly for prime real estate in the best locations. If the Federal Reserve continues its modest tightening, the risk premium will narrow and this could nudge up yields, eroding capital values somewhat. So what to do? The markets are now giving investors income rather than capital. Perhaps therefore, it is best to embrace that, diversify, keep leverage under control and asset manage your properties.
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F R O M M I C R O D E TA I L S TO THE BIGGER PICTURE, WE WORK WITH YOU T H R OU GH P R A C TI C A L LY E V E RY T H I N G . www.al masahc apital.com
T h ro u g h o u r subsidiar ies and affi liates, w e o p e ra t e o ffi ces in Dubai & Abu Dhabi.
A L MA S A H C A P I TA L LI MITED, C /O WA LK E RS C ORP ORATE LIMITED, C AY MA N C ORP ORATE CENTRE, 2 7 HOS P I TA L ROA D , G E ORG E TOW N , G RA ND CAYMAN KY19008, C AY MA N I S LA N D S
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E info@almasahcapital.com www.almasahcapital.com
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REAL ESTATE ADVERTORIAL
Aristo Developers:
Your property partner in Cyprus and your gateway to Europe GROUP SALES AND MARKETING MANAGER OF ARISTO DEVELOPERS, ANDRONICOS ANTONIOU, GENERAL MANAGER MIDDLE EAST AND RUSSIA, DISCUSSES THE THRIVING PROPERTY MARKET IN CYPRUS AND THE UNIQUE EU CITIZENSHIP AND PERMANENT RESIDENCY PROGRAMMES OFFERED THROUGH PROPERTY INVESTMENT
A
ANDRONICOS ANTONIOU
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s a leading property developer in Cyprus, Aristo Developers is built on a solid reputation of expertise and trust. Always striving to maintain quality and reliability, Aristo Developers offers a vast portfolio of freehold property sure to attract any buyer. Close to four decades ago, Aristo Developers was founded by Theodoros Aristodemou, who continues at the helm today, ensuring that the Company remains the preferred partner for acquiring real estate in Cyprus. With more than 250 island wide developments and more than thirty new projects available, Aristo Developers is the largest landowner on the island and has maintained a reputation for quality and excellence. Thousands of satisfied homeowners choose to purchase properties from Aristo Developers, which has also led the way in large-scale investments. These include the Venus Rock Golf Resort and the hugely popular and contemporary
Kings Avenue Mall, which is the largest, contemporary shopping facility on the island. Properties are available to suit all budgets, and Aristo Developers promises value for money and quality purchases which are risk free. Living in Cyprus is a unique Mediterranean experience and a dream for many, and Aristo Developers is ready to make that dream become a reality. Cyprus has much to offer real estate investors including the island’s unique location and months of plentiful sunshine. The climate is ideal for swimming and water sports; autumns are short and winters mostly mild. However, snow on Troodos Mountains which usually starts mid-December, means that skiing and snowboarding are also popular. Cyprus also has much to offer for both investors and residents, as the safest county in the European Union, and offers favourable tax incentives for individuals
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A LUXURY VILLA IN CYPRUS, WHERE ARISTO IS BASED.
through property investment, which is both fast and efficient. Drawing on more than 37 years in quality land development and real estate, and a strong business network of International partners, Aristo Developers are the premier choice for individuals wishing to gain EU citizenship or EU residency through the Cyprus Citizenship programme and the Cyprus Permanent Residency programme. The Cyprus EU Citizenship Programme boasts a plethora of benefits for those meeting investment criteria and is particularly beneficial to non-European investors. It is also a simplified fast track process and can be obtained within six months (pre-approved in three months). All nationalities are eligible for the programme which offers free movement and there are no residency requirements. Citizens gain the right to live, work, travel and receive education within the European Union. Other benefits include the free movement of goods, services and
capital, and citizens are also able to access the first class EU health care system. Dual citizenship is also permitted, meaning that there is no need to give up previous nationality, and citizenship can also be passed on to future generations by descent. In addition, there are no tax consequences, unless the applicant chooses to become a tax resident in Cyprus. Cyprus EU Citizenship may be obtained through a secure property investment of EUR 2 million provided that the investor maintains a residential property at a value of EUR 500,000 (plus VAT) as a main residence. Meanwhile, the Cyprus Permanent Residency Programme is popular with nonEU individuals that wish to gain a permanent residency in an EU member state. It is granted within two months with a property investment of EUR 300,000 (plus VAT) and the applicant and their dependents only have to visit Cyprus once every two years. Criteria includes a secured annul income from abroad or other sources, other than
employment in Cyprus. The Permanent Residency is for life and covers an entire family, including dependents and parents of the main applicant and spouse. It also provides easy access within the EU. Aristo Developers has been given a vast number of accolades from local and international organisations over the years, including “Best Cyprus Property 2017” by the European Property Awards. Aristo Developers was also the first “Class A” property and construction developer in Cyprus to be endorsed by the International Standards Organisation (ISO 9001) for quality. We are extremely optimistic about Cyprus’ thriving property market. As an innovative and constantly evolving leader in property construction and real estate, Aristo Developers has plans in the near future for additional international 18-hole championship golf courses, luxury beachfront residences and high-rise developments, to be developed in the island’s most soughtafter locations.
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LUXURY RESTAURANTS
DISFRUTAR'S OWNERS AND HEAD CHEFS MATEU CASAÑAS, ORIOL CASTRO, AND EDUARD XATRUCH.
The new ‘world’s best restaurant’
INSIDE BARCELONA’S DISFRUTAR, WHERE THREE SEASONED CHEFS, MATEU CASAÑAS, ORIOL CASTRO AND EDUARD XATRUCH, HAVE BEGUN CRAFTING DISHES THE WORLD HAS NEVER SEEN, AND MUST TRY
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hen the legendary restaurant elBulli, located in the outof-the-way town of Roses,
Catalonia, Spain, shut is doors for the last time in 2011, BBC News ran the headline that the ‘world’s best restaurant’ had closed.
This was no exaggeration—it was more or less settled fact. First opened in 1964, it was still considered by major publications
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A LOOK INSIDE THE RESTAURANT.
That’s not to say that Compartir is not a restaurant the three are proud of. “We have Compartir It’s a very relaxing restaurant with modern cuisine, but it’s not creative,” says Xatruch. THE EXTERIOR OF DISFRUTAR IN BARCELONA.
to be one of the top one or two restaurants in the world when it shut its doors. Though its head chef Ferran Adrià was oft given the lion’s share of the credit, including being called the world’s best chef, one man does not a restaurant make. In its kitchen was a host of brilliant chefs, including the trio of Mateu Casañas, Oriol Castro and Eduard Xatruch. They honed their skills for years as the restaurant accumulated Michelin star after Michelin star. “We started to work together maybe 20 years ago in elBulli in Brussels. We worked there 18 years more or less. There are three of us, Mateo, Oriol and me,” Eduard Xatruch tells me one afternoon. The trio wasted little time after elBulli closed, opening their own restaurant, Compartir (Spanish for ‘to share’) in April 2012 in Cadaqués. Two and a half years later in December 2014, the three opened Disfrutar, which means ‘to enjoy.’ It is there that he and I currently are standing, and it is there that the three have managed to build one of the most creative and enjoyable—as labeled—restaurants that haute cuisine has ever known.
A SPIRITUAL SEQUEL
With Disfrutar, Xatruch and his partners are able to achieve the dreams they began at elBulli—crafting a menu of dozens of dishes that diners do not choose for themselves—they wait to experience what the chefs have prepared that day. “We want to make creative cuisine. The tasting menu is a way to cook like we did in elBulli. We like to make new things, to make a different cuisine. We started three and a half years ago here at Disfrutar, and at the beginning, it was not creative cuisine because to make creativity is very hard. You need a team, you need space to make new things. You can make new dishes, but the most difficult thing is to make new techniques or new concepts.” The way they approach making new things is basically the same as they did at the ‘world’s best restaurant’. “It’s similar as it was to elBulli. In the kitchen, the creative process was huge and had no limits.” How do they get their ideas? “Maybe now when we are talking, you’ll tell me you’re in New York and you tell me you loved to eat potatoes with chocolate. Maybe in six months we’ll be making something with potatoes, and we’ll remember what you said, and try it.”
But it is not about just following every crazy idea—it has be worthy of serving. “There is always one thing—when you have an idea, this is a restaurant. The point is not to make a book of ideas. You have to make these ideas work, and you have to work hard to do so. If you have an idea, it has to become a finished product. For instance, now we are testing a dish with fresh walnuts. Now the walnuts are very little and green. We are creating the product is the initial part to create, because it’s new for us.” It is a long process before they actually finish a dish—partially because it can be hard to know if it is the fullest realisation of the concept until you’ve tried it again and again, in different ways. “If you eat a Spanish omelet you have eaten a lot, you can say ‘this is good’ or ‘this is not good.” But today you ate something you’d never eaten before,” Xatruch says to us. “It’s your first—you cannot compare. So afterwards there is knowledge to be able to say, ‘this is new, and this is good.’ Of 2000 things that we’ll make in the testing kitchen, maybe just 20 are good.”
NO PRESSURE…
Finally out of the shadow of elBulli, Xatruch does not feel anxious about living up to the name of his old kitchen. “We make what we like to make. For us there’s no pressure. For us, we are very happy because we have a restaurant and people come to eat what we want. When we started we were very afraid because it’s ...cont. overleaf
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LUXURY RESTAURANTS
cont. from page 43
a big expensive restaurant in Barcelona, and you need a lot of people to make this type of kitchen and service because it’s very elaborate and there are a lot of things to the table. It’s not first dish, second dish, dessert and go. There are 30 times that you’ll have to go to the table. Now we have 46 people working with 48 customers.” It’s not just about crafting dishes— the presentation also has to be innovative and impeccable. To do this, they bring in collaborators. “Here we are making a project with a design school. We bring in graphic designers, and we work together to make new ways of presenting the food,” says Xatruch. “They will continually make different prototypes based around the food’s concept until they finally have one that they feel perfectly captures the essence of the dish.” In the end, they make around 100 dishes per year. “That’s huge,” Xatrush says. In a normal restaurant, you may make 100 dishes to sustain the whole life of the restaurant.” To keep things fresh, they create a new menu once a week.
AN IMPRESSIVE PORTFOLIO
Xatruch and his partner Oriol Castro, not quoted in this article because he does not speak much English, walked us through the binders of each year, cataloguing all of their creations since Disfrutar’s inception just a few years ago. In the binders, they will mark the dishes that they feel were the best, and mark in red the dishes that they didn’t feel reached their standards. “But maybe next year we will take one of these and work on it to make a good one out of it,” says Xatrush. The chefs also work to craft a meal from beginning to end—not just each dish. How the dishes are sequenced is an essential part of their process. “We always say that a testing menu is like a song—you listen to a song and it’s fantastic. But a song has notes. If you have the same notes again and again, it’s not good. It’s the same with a testing menu.”
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THESE "PEPPERS" ARE NOT WHAT MEETS THE EYE.
“It’s important because if you eat something very fatty like a macaroni carbonara, you follow that with a liquid caprese to clean the palette,” Xatrush says, referring specifically to the menu WEALTH Arabia tasted. “You have an egg yolk, and then you have a ceviche. That way you can have a large menu and not feel too full, because it’s important that you finish and say that you ate a lot but not that you feel bad.” Creativity is not just a matter of putting a new spin on an old thing. It is essential to the three chefs to do things that have never been done before. In one dish during our meal, we smelled—only smelled—a certain vinegar before tasting the rest of the dish. “This is huge because this is the first time in a restaurant you only smell a vinegar,” Xatrush stressed. As he walks around the back area, where images of each dish are on display on the wall for them to peruse, he points out some of the dishes I had sampled. “Look at this! This is new!”
GOING WITH YOUR GUT
How do they know what things will work in combination? “You’re a journalist—when you sit down to write, you know what words will go well together. For one dish, we combined horchatta and black truffle. It’s not common,
but we know certain elements balance well together, so we try to combine them. If you are creative, you think in a creative way. I don’t sit down and say, ‘oh, it’s 9 o’clock! It’s time to think creatively!” says Xatrush. The creative process doesn’t always work quickly. “Maybe you’ll have an idea, and you’ll start to create and in two seconds you’ll have it. Sometimes you’ll think of a dish and in your brain it’s very simple, but when you get to the kitchen and you taste it, it doesn’t work. To make magic things is not easy.” It is not enough for the dish to just be ‘new’ however. It also has to live up to the standards they hold the restaurant to—dishes that may be good enough for other restaurants, but aren’t good enough for Disfturatr. For this, Xatrush makes a football analogy, “Sometimes someone is good enough to make the team, but if you want to be in the Champion’s League, they’re not good enough. If you want to win a championship, the degree of difficulty goes up.”
MEASURING SUCCESS
Do they worry about Michelin stars? Simply, “No.” “This year, we were put in the top 50 of the world, and were called ‘one to watch’. In another list, we are in the top 26 of the world.”
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DISFRUTAR'S SIGNATURE CARBONARA WITH BEEF BACON.
CASAÑAS AND XATRUCH IN FRONT OF THEIR LATEST CREATIONS.
XATRUCH GIVES A TOUR THROUG H THEIR PAST RECIPES.
AN INTRICATE SALMON DISH WITH MANY FACETS TO DISCOVER.
This is not the essential part—it is only necessary that the restaurant has found its audience. “The important thing for us is that the restaurant is fully booked. That means that people like it. I don’t want to have a restaurant with three Michelin stars and you go to the restaurant and it’s half empty,” says Xatrush. If you can’t tell already, Xatrush is not shy about stating how different they are. “There are not many chefs in the world that can make new things in a real way,” he says. While elBulli may have put the concept of ‘molecular gastronomy’ on the map, that is not one that these chefs hold themselves to.
“Now, the world ‘molecular gastronomy’ is regular. For us it’s irregular—‘molecular’? I don’t know what that means!” Whatever they call it, we can confirm that they are not merely boastful—the three hours we spent eating at Disfrutar were a joy, with each dish providing a new surprise. With unexpected flavors and surprising textures, each dish was playful and delicious. And even after dozens of courses, we felt satisfied, but not overstuffed, just as Xatrush promised. elBulli may have only been gone for a short while, but it has a worthy sequel. Disftutar is an unforgettable experience, and, for our money, the best restaurant we’ve visited in our long memory. Go out of your way to try it—it’s worth every penny.
TO THE CH EFS, HOW A DISH IS PRES SOMETIMES EN TAKES AS M UCH EFFORT TED AS THE DISH ITSELF .
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MOTORING
DRIVING LIKE A
WWE SUPERSTAR
PHOTO: W
WE
WWE Superstars spend their lives on the road. Seven of WWE’s top stars revealed to WEALTH Arabia their favourite ways to get around in style
R, FINN BALO AMPION ERSAL CH RST UNIV
PHOTO: MEDIA.FORD.COM
WWE’S FI
FORD MUSTANG
“I drive a Mini Cooper Countryman, which is practical for getting around places, but when I was in Birmingham Alabama with the incredible staff down there in the hospital rehabing my shoulder injury, I would rent Mustang to make myself feel better. I really enjoy driving a Mustang around. I only started driving three years ago at 33 when I came to America. I’m not a huge car guy, but those Mustangs, when you press the pedal… Seth [Rollins] has been talking about Teslas a lot, so I have to try one out.”
–Finn Balor, WWE’s first Universal Champion 46
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“I drive an ’06 Nissan Altima. I like Teslas, but I admire them from a far.” PHOTOS: WILLIAM MULLALLY
– Big E, three-time Tag Team Champion “Unless Tesla wants to hook us up,”
ODS, BIG (L-R) XAVIER WO
N
E, KOFI KINGSTO
PHOTO: TESLA
PHOTO: W
WE
Woods adds.
TESLA X
PHOTO: SHUTTERSTOCK BY ALEXEY BROSLAVETS
“Oh man. You know what? For me it was the Lamborghini because the doors would open up. When I realised I was never going to have a Lamborghini it became the Mitsubishi 3000 GT, which was a cheap version of the Lamborghini and they stopped making it. But right now, probably a Range Rover—an SUV/ sports car. It’s real fast, I like that.”
– Kofi Kingston, four-time Intercontinental Champion, a three-time United States Champion, and a six-time Tag Team Champion
PHOTO: CURBSIDECLASSIC.COM
MITSUBISHI 3000 GT VR-4 SPYDER
“A Town and Country. [Chrysler] Minivan.”
– Xavier Woods, three-time Tag Team Champion ...cont. overleaf CHRYSLER TOWN AND COUNTRY
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E
PHOTO: SHUTTERSTOCK BY MAX EAREY
SAMOA JOE
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“I’m a muscle car guy, you know what I mean? I just saw the new Bugatti that was around $3 million that looks pretty sweet. I like vintage Challengers. I like old hot rods. Where I grew up in Huntington Beach, California, on my way to school was [legendary hot rod designer] Chip Foose’s shop, and I think [fellow legendary hot rod designer] Boyd Coddington’s was a couple blocks from there. I remember the ZZ Top Eliminator dragging down my street when I was a kid. I think inevitably I could see myself getting a T-top, a jalopy or a hot rod and fix that up. I would be more than happy with that.
– Samoa Joe, two-time NXT Champion
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MOTORING
PHOTO: SHUTTERSTOCK BY DAVID M G
cont. from page 47
CHEVROLET CHEVROLET CORVETTE CORVETTE C3 C3
BUGATTI VEYRON SUPER SPORT
My dad is a big Corvette guy. He has one and sometimes I borrow it from him, maybe if I’m going to go on a date to impress her!
PHOTO: WWE
– Mojo Rawley
PHOTO: WWE
MOJO RAWLEY
STING
There’s a company in California called Icon. Jonathan Ward. He has a line called the ‘Derelict’ line. Pull it up online. I love it. There’s your answer. But I have not driven one, they’re not easy to get.
– WWE Hall of Famer Sting
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EVENTS
RIJU GEORGE – PORTFOLIO DIRECTOR, DUBAI INTERNATIONAL MOTOR SHOW, SPOKE WITH WEALTH ABOUT THEIR LATEST EVENT 14 – 18 NOVEMBER What’s new for this year and what will be the highlights of this year's Dubai International Motor Show? As the region’s premier automotive event, Dubai International Motor Show, which is held every two years and celebrates its 14th edition this year, is a must-attend for manufacturers, distributors, industry specialists and key buyers from around the world, as well as discerning motoring enthusiasts. This year’s event, running from 14 November to 18 November at Dubai World Trade Centre, the Dubai International Motor Show will be a haven for car enthusiasts, with an array of concept cars, supercars, global and regional launches, including the world’s fastest quad bike, and more on the show floor. Our Future Car Tech Zone will demonstrate the confluence of the car and technology industries, and shine the spotlight on how state-of-theart developments are changing the way people drive. Dubai International Motor Show will have the adrenaline pumping as we strive to put visitors behind the wheel of high-speed cars in our Race Room Simulators, and thrill them with drifting experiences through our partnership with Dubai Autodrome. Leading manufacturers Toyota, Nissan, Jaguar and Land Rover will bring outdoor experiences to this year’s show, while visitors will also get the opportunity to test drive models from some of the world’s most soughtafter brands.
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The show will welcome in excess of 100,000 visitors from more than 70 countries to witness more than 15 global launches, hundreds of regional reveals and 15 concept cars being presented by leading automotive companies and brands. Visitors will include VIPs, top-ranking government officials, car enthusiasts, families and international celebrities from the motoring world. Are there any brands exhibiting for the first time this year? If so, which ones? As Dubai International Motor Show’s reputation has grown over the years so too have the requests from exhibitors to be involved as they identify the possibilities and potential associated with this prestigious event. With each edition we welcome new brands and appearing for first time this year will be products from Rodin, Borgward, Devel 16, Shaali N360, Karlmann King, Auto Millennium/Llumar, Engler, Linford
Motorsport, Icona, Prato, Rimac, Apollo Tyres (EXHIBITED IN 2015), Low & Co UK and Goodyear. Why is the Dubai International Motor Show important to the luxury car industry? Dubai offers the perfect location to host an automotive show of this magnitude. According to The Wealth Report, there will be a 50 per cent growth in UNHWIs based in Dubai in the next decade and the World Ultra Wealth Report states that billionaires in the Middle East—with a combined net worth of $354 billion – collective have a higher percentage of wealth than in any other region. These statistics, coupled with the fact consumers in the UAE spent $4.8 billion on cars and other vehicles in 2016, highlight the important role Dubai International Motor Show plays in the regional and global luxury car industry. Indeed, the supercar area at this year’s show will be 25 per cent bigger than in 2015 as a result of visitor interest.
SNEAK PEEK AT THE MOTOR SHOW.
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WEALTH MANAGEMENT
Be Life Ready to protect them at every step. Secure their future with our Life Protection Solutions. You're never too young or too old to start planning for your future. With our Life Protection Solutions, you enjoy complete peace of mind while being assured your loved ones are protected. Our Insurance Solutions allow you to: Choose protection benefits based on your needs Select premium payments in line with your circumstances
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sc.com/ae Terms and conditions apply. This communication is provided for general information purposes only and is not to be used or considered as an offer to buy the specific wealth management product. Standard Chartered Bank does not offer insurance advice, nor does it underwrite or issue insurance policies. Insurance products are underwritten by third party insurance providers and are subject to the client's need analysis assessment. Past performance of investment products is not indicative of future results.
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