Necklaces for sale in one of the many shops of Dragon Mart. Jaime Puebla / The National
Necklaces for sale in one of the many shops of Dragon Mart. Jaime Puebla / The National

China on show as you enter the Dragon Mart



On Dubai’s Hatta-Al Ain motorway lies the Dragon Mart, one of the largest trading centres for Chinese products outside China.

Dangling from its ceiling are many Chinese spheres coloured bright red. The market can be an amusing place and the deeper you go into it, the better it gets.

Blending the smells of Arab Oud incense sticks with tasty Chinese food, the market is an eclectic mix. It is a rare place that combines the sounds of an ancient Chinese temple gong with the recent South Korean pop song Gangnam Style, which was a hit around the world.

On the top floor is a huge furniture shop, full of gold-plated wooden chairs and sofas that match the taste of a fine Middle East home. At the centre of the shop sits the Chinese-born Sara Zhu, 25, dressed in an elegant modern suit. Ms Zhu came to Dubai two years ago after learning English in China.

“I came here because I want to see the world,” she says with a wide smile. “Here, we are trying to meet a market need. We work with wholesale and retail, depending on the manufacturing quantity. If the quantity is big enough, we create a mould for it in China.”

Like Ms Zhu, many Chinese settle in this country hoping to find fruitful business opportunities. They aspire to bring the products of their country to the world. Data from Dubai’s Chamber of Commerce shows that from January to September last year, the UAE’s non-oil trade with China was valued at Dh50 billion, making it the Emirates’ fourth-largest trading partner. Imports from China were at Dh44.3bn, while exports to China reached Dh4bn for the period.

Reductions in red tape have helped to spur trade further. Cui Bing, 27, who goes by the western name John, has been managing a shop selling massage products and air purifiers for seven years. Mr Bing says UAE government procedures have eased in recent years.

“Now it takes a day to bring products in, before it used to be three to four days,” he says.

Mr Bing says it is also easier to process visa for Chinese workers now, especially as Dragon Mart has become well-known in recent years.

Moving to the ground floor, three Chinese women are chatting in a shop full of colourful lip-shaped phones, hello-kitty calculators, and glittery bags.

“Our clients are mostly women from Saudi Arabia, Kuwait, and Qatar,” says CuCu Quan Xiao, 26, brushing her dyed-blonde hair from her face. “They like crystals, the bling-bling,” she adds, giggling.

In a tiny mobile shop next door, Chen Xin, 25, stands with his white T-shirt tucked in a pair of jeans.

“Customers here think that Chinese products have low price. [But] good quality must have high price,” he says, pointing to a display of tablets devices. “We have tablets that look like other brands, but the CPU [central processing unit] is different. They are sold for Dh250, but people come and say other places sell them for Dh150 or Dh100,” he complains.

Despite the bustle, traders at Dragon Mart say they some of the problems elsewhere in the region have had an effect locally.

“Now the business is getting really slow,” says Ms Zhu.

“Before we used to have wholesale traders coming from Iran and Syria. But now it’s not the case.”

Trade between the UAE and Iran dropped significantly from an estimated US$14bn in non-oil goods in 2007 to just $4bn in the first half of last year after the tightening of sanctions on Iran over its alleged development of nuclear weapons production capability. The Arab Spring in 2011 also hit many Chinese traders on this country.

“The business before 2008 was amazing,” says Qin Hong Zeng, a young Chinese manager at a wall paper shop.

“Countries like Syria, Iran, and Egypt are not stable. We used to get wholesale traders from these countries.”

Mr Zeng says the high cost of labour, transport and a stronger yuan has also hit business and profits. The shop he works at owns a factory in China with a team that buys designs from all over the world.

Dragon Mart traders also face challenges from the fancy new malls that have opened in Dubai in the past few years. The almost 10-year-old Dragon Mart has started to look tired by comparison.

However, with a touch of National Day decorations last week, mixed with the celebrations to mark Dubai’s victory in the contest to host Expo 2020 – the hype was on.

“I’ve been to all the emirates, but still feel I don’t know the country very well,” says Ms Zhu.

“However, I realise that I have got some connection with the country,” she adds, saying Dubai’s winning bid to host Expo 2020 drove the point home for her.

“The Expo win, I am excited about it. I think I am proud after all.”

selgazzar@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.”

A State of Passion

Directors: Carol Mansour and Muna Khalidi

Stars: Dr Ghassan Abu-Sittah

Rating: 4/5

Apple product price list

iPad Pro

11" - $799 (64GB)
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$799

The specs
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Power: 510hp at 9,000rpm
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Fuel economy, combined: 13.8L/100km
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PREMIER LEAGUE FIXTURES

Saturday (UAE kick-off times)

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Brighton v Arsenal (6pm)

West Ham v Wolves (8.30pm)

Bournemouth v Crystal Palace (10.45pm)

Sunday

Newcastle United v Sheffield United (5pm)

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Everton v Liverpool (10pm)

Monday

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Traits of Chinese zodiac animals

Tiger:independent, successful, volatile
Rat:witty, creative, charming
Ox:diligent, perseverent, conservative
Rabbit:gracious, considerate, sensitive
Dragon:prosperous, brave, rash
Snake:calm, thoughtful, stubborn
Horse:faithful, energetic, carefree
Sheep:easy-going, peacemaker, curious
Monkey:family-orientated, clever, playful
Rooster:honest, confident, pompous
Dog:loyal, kind, perfectionist
Boar:loving, tolerant, indulgent   

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million