Al Barakah's expanded facility in Dubai Industrial City will be capable of processing over 100,000 tonnes of dates and date products annually. Courtesy Al Barakah Dates
Al Barakah's expanded facility in Dubai Industrial City will be capable of processing over 100,000 tonnes of dates and date products annually. Courtesy Al Barakah Dates
Al Barakah's expanded facility in Dubai Industrial City will be capable of processing over 100,000 tonnes of dates and date products annually. Courtesy Al Barakah Dates
Al Barakah's expanded facility in Dubai Industrial City will be capable of processing over 100,000 tonnes of dates and date products annually. Courtesy Al Barakah Dates

Al Barakah to set up world's largest privately owned date factory in Dubai


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Al Barakah Dates plans to double the size of its dates manufacturing unit in Dubai to become the world's largest privately owned date factory.

The expanded facility in Dubai Industrial City will be capable of processing more than 100,000 tonnes of dates and date products annually – equivalent to almost half of the UAE’s entire domestic harvest, the company said in a statement on Sunday.

"This expansion will allow us to further grow our range of organic and conventional date products to cater to the growing needs of health-conscious consumers around the world," Yousuf Saleem, managing director of Al Barakah Dates, said.

Date production has become lucrative as demand for the fruit – often considered a healthier alternative for sugary products – picks up. Improving technologies have also helped develop dates as a vegan alternative to other sugar or fructose-based products, according to Al Barakah.

Al Barakah, which produces over 65,000 tonnes of dates, syrup and paste and imports to 75 countries, said its expanded factory will cover over 600,000 square feet and is set to be completed in 2022.

The factory will also be equipped with more than 6,500 solar panels to offset 3,000 tonnes of emissions per year.

The rising appeal of dates to consumers has also led to investors tapping into the sector.

Earlier this year, Abu Dhabi-based Al Foah, the world’s largest date processing and packaging company, was merged with food and beverage company Agthia.

Founded in 2005, Al Foah sells an average of over 108,000 metric tonnes of dates annually. It exports to 45 countries around the world including India, Indonesia and Bangladesh.

The deal with Agthia is expected to make the combined entity among the top 10 players in the Mena's food and beverage market.

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The Details

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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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Day 5, Abu Dhabi Test: At a glance

Moment of the day When Dilruwan Perera dismissed Yasir Shah to end Pakistan’s limp resistance, the Sri Lankans charged around the field with the fevered delirium of a side not used to winning. Trouble was, they had not. The delivery was deemed a no ball. Sri Lanka had a nervy wait, but it was merely a stay of execution for the beleaguered hosts.

Stat of the day – 5 Pakistan have lost all 10 wickets on the fifth day of a Test five times since the start of 2016. It is an alarming departure for a side who had apparently erased regular collapses from their resume. “The only thing I can say, it’s not a mitigating excuse at all, but that’s a young batting line up, obviously trying to find their way,” said Mickey Arthur, Pakistan’s coach.

The verdict Test matches in the UAE are known for speeding up on the last two days, but this was extreme. The first two innings of this Test took 11 sessions to complete. The remaining two were done in less than four. The nature of Pakistan’s capitulation at the end showed just how difficult the transition is going to be in the post Misbah-ul-Haq era.

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