Pret A Manger, which owns and operates a chain of restaurants globally, plans to open 20 shops in the UAE over the next few years as it seeks to double the size of its business in the next five years.
The company signed an agreement with its long-term franchise partner in the UAE, Emirates Leisure Retail, for the expansion, which is expected to create several hundred jobs in the country, it said on Thursday.
Emirates Leisure Retail, a subsidiary of the Emirates Group, owns and operates more than 300 restaurants, cafes and bars across the Middle East, Africa, North America, Asia and Australia.
“We have been working with Pret for over seven years, and in that time, we have seen the demand in Dubai for Pret’s freshly prepared food and organic coffee grow every day,” said Andrew Day, chief executive of Emirates Leisure Retail and MMI Group.
“This extended partnership will help us meet that demand across the country.”
The UAE's food service market is forecast to grow at a compound annual rate of 6.8 per cent between 2022 and 2027, on the back of high disposable income, rising tourist arrivals, an increasingly urban lifestyle and evolving consumer preferences, according to a report by Mordor Intelligence.
“Growing trends in the market, such as food trucks and food stalls, with the availability of various international cuisines, are also rendering a new experience to customers, thus boosting their spending on food away from home,” the report said.
Pret A Manger, which opened in London in 1986, offers coffee, sandwiches, salads and wraps, and has expanded globally with shops in cities such as Dubai and Hong Kong, as well as countries such as Belgium, Germany, France, Singapore, Switzerland, the UK and the US.
The company is focusing heavily on international growth. Last November, it signed an agreement with One PM Franchising to expand in Kuwait.
Earlier this week, Pret also announced plans to launch the brand and its products in Spain and Portugal as part of an agreement with new franchise partner Ibersol Group.
Pret is also growing its presence vertically and has expanded into consumer-packaged goods as it sells bake-at-home frozen croissants, granolas, tomato sauce and coffee, with the products now available in UK shops.
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Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
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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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A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
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