Erica Werneman, left, and Yasmine Akermark, developed the app Tibba through a barter with Swedish technology company Layer10 Collective AB. Alex Atack for The National
Erica Werneman, left, and Yasmine Akermark, developed the app Tibba through a barter with Swedish technology company Layer10 Collective AB. Alex Atack for The National
Erica Werneman, left, and Yasmine Akermark, developed the app Tibba through a barter with Swedish technology company Layer10 Collective AB. Alex Atack for The National
Erica Werneman, left, and Yasmine Akermark, developed the app Tibba through a barter with Swedish technology company Layer10 Collective AB. Alex Atack for The National

Paying for services in kind: Tibba app allows people access to exchange skill set


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There’s a new app that’s bringing back the barter system. Tibba, developed by Dubai lawyer Erica Werneman and Yasmine Akermark, allows freelancers, professionals and stay-at-home parents to exchange skills and services – from photography to yoga training – without having to dig into their pockets. The app, which is in its beta-testing stage, will be launched on Google Play and Apple Store later this month.

The concept

The Dubai-based Swedes came up with the idea for the platform a few years ago, while on a road trip to the Omani town of Dibba. (It’s also where the app got its name – they mistook Dibba for Tibba, and the name just stuck.)

“[During the trip] we were talking about the concept of happiness,” says Werneman. “When you ask someone what makes them happy, the general response is an ‘experience’, not buying something with money,” she says.

That realisation and the tough economic climate that has businesses cutting costs became the foundation for the app.

“It is ironic that money was created like a liquidity for people to trade, but we constantly find ourselves in a situation where thousands of people have skills that they want to trade, but they or the other party doesn’t have cash,” says Werneman. “So we are just trying to bypass that, make sure that people have access to opportunities no matter what the size of their wallet is.”

The duo established the company, which is registered in the United Kingdom, through a barter with Swedish technology company Layer10 Collective AB, which developed the app.

“We first thought of raising money through investors but didn’t really know what to do with the cash. So instead we pitched it to IT firms and signed one on to get an equity stake in the company rather than pay the creators.”

Skills swap

The app will allow users to create a profile, similar to online freelance professional platforms, detailing their skills, experience and projects. They also state the services they are seeking and what they can offer in return.

“We let the app user pick what they are happy and satisfied to exchange,” says Akermark, who looks after the operations in London. “We do not get involved in the valuation of the services because that is a subjective concept. It’s a mutually agreed contract between the two parties.”

After the user develops their profile based on a standard template, which can be tweaked with personal images, they are placed into categories such as accommodation, adventure, beauty, creative, fitness, food, language, pet sitting and tickets.

Once they find a desirable give-and-take, they can start a private conversation to discuss specifics of the exchange. The terms are formalised by clicking the “handshake” within the app and each party is sent a copy of the agreement. Users also get reminders to make good on the undertaking and an alert on the expiration date. On completion of the projects, the app requires users to rate the collaboration, maintaining quality through a peer-review system.

Surf House Dubai and personal trainer and nutrition coach ­Marti Susanne Hobby are among the professionals that have already signed up as part of the testing phase.

“Surf House Dubai had already been engaging social-media influences, who they would provide free gear with in return for being promoted. With our app they can reach a much bigger audience,” says Werneman. “And Hobby, she is looking for people to help her launch her online business and will be taking ­personal-training sessions for people who agree to the exchange.”

The roll-out

The founders will test the app in Dubai before rolling it out later this year in other cities around the world, including London, Barcelona, Bali and Shanghai. A crowdfunding campaign on Kickstarter is also in place to raise funds for the expansion. And premium services will be ­offered for a fee in the next phase.

“While the basic services will be free, other services – such as adding insurance for businesses and allowing users to access services offered by users in other communities when they travel – will come at a premium fee,” says Werneman.

• Tibba launches in Dubai this month and will be available for free on Google Play and The Apple Store. For more details, visit gotibba.com (@gotibba on Instagram)

aahmed@thenational.ae

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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Profile of Tamatem

Date started: March 2013

Founder: Hussam Hammo

Based: Amman, Jordan

Employees: 55

Funding: $6m

Funders: Wamda Capital, Modern Electronics (part of Al Falaisah Group) and North Base Media

WHAT IS A BLACK HOLE?

1. Black holes are objects whose gravity is so strong not even light can escape their pull

2. They can be created when massive stars collapse under their own weight

3. Large black holes can also be formed when smaller ones collide and merge

4. The biggest black holes lurk at the centre of many galaxies, including our own

5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed

RESULTS

Tottenham 1

Jan Vertonghen 13'

Norwich 1

Josip Drmic 78'

2-3 on penalties

Heavily-sugared soft drinks slip through the tax net

Some popular drinks with high levels of sugar and caffeine have slipped through the fizz drink tax loophole, as they are not carbonated or classed as an energy drink.

Arizona Iced Tea with lemon is one of those beverages, with one 240 millilitre serving offering up 23 grams of sugar - about six teaspoons.

A 680ml can of Arizona Iced Tea costs just Dh6.

Most sports drinks sold in supermarkets were found to contain, on average, five teaspoons of sugar in a 500ml bottle.