After more than 40 years in business, Dubai’s first fine art gallery is closing down.
The Majlis Gallery, founded in 1979 and situated in Bur Dubai’s Al Fahidi district, has weathered many changes in the emirate’s history and its art scene, but dwindling funds have made it impossible to keep running.
“We’ve been struggling for about 10 years,” says founder Alison Collins, who first came to the UAE in the mid-1970s as an interior designer. She says that gallery’s profits simply could not keep up with the costs of wages, trade licences and rent. “It just wasn’t stacking up. I couldn’t make it work any more.”
The coronavirus pandemic has worsened the situation, leading Collins to decide to shut the gallery doors permanently.
The Majlis Gallery in happier times:
Over its four-decade run, The Majlis Gallery has welcomed many artists and residents into its space. It was originally Collins’ residence, where she lived with her family for a decade, starting in 1978.
The gallery began as an informal concept a year later, when British painter Julian Barrow approached her to display and sell his paintings. She transformed her villa into an exhibition space and invited other residents to see the show, which quickly sold out.
Afterwards, Collins began staging more exhibitions, mostly with artists from the local community or what she calls “Friday painters”. On opening nights, the gallery would be filled with people who had heard of the venue through word of mouth. “We just opened the doors and had a soiree. People came because it was a very sociable thing,” she recalls.
Its popularity also helped bring in more established artists. “We didn’t have to do much marketing in those days,” she says. “Word got out on the professional circuit, and we started to get full-time painters.”
In 1988, she and her family received an eviction order as Al Fahidi was facing redevelopment. Within a year, however, the landlord asked them to return. Collins chose to dedicate the space to a commercial gallery, turning The Majlis Gallery into a fully fledged business.
The exhibitions continued, and the gallery created an Artists in Residence programme, in which artists were invited to stay at the villa, explore the UAE and create works relating to their experiences. Collins says that the gallery has worked with at least 30 artists its time.
Over the years, however, Dubai’s rapidly changing landscape has had an impact on her business. As Al Fahidi became a tourist spot, The Majlis Gallery’s role began to shift. “We turned into a tourist attraction, but you can’t make money out of tourism with art,” Collins says. “Physically, this area was the centre of Dubai. Our slogan was ‘art in the heart of Dubai’. While it was still the metaphorical heart, physically, we no longer were.”
Currently, The Majlis Gallery is holding a “swan song sale” that includes pieces from 50 artists and lasts until Friday, October 16. “It includes works from all our major artists, who have been really supportive,” Collins says, then adds she was determined to make the gallery’s final show impressive. “It has much to do with our relationships with the artists. We go back a long way with each one of them, so it needs to be done well.”
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Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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