Muslim pilgrims circumambulate the Kaaba. The annual pilgrimage also holds several takeaways for entrepreneurs. AP Photo
Muslim pilgrims circumambulate the Kaaba. The annual pilgrimage also holds several takeaways for entrepreneurs. AP Photo
Muslim pilgrims circumambulate the Kaaba. The annual pilgrimage also holds several takeaways for entrepreneurs. AP Photo
Muslim pilgrims circumambulate the Kaaba. The annual pilgrimage also holds several takeaways for entrepreneurs. AP Photo

There are lessons too for entrepreneurs from the Hajj


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Follow the latest updates on Hajj 2021 here

As millions of Muslims around the world prepare to celebrate Eid Al Adha, or the Feast of Sacrifice, few of them are also preparing to undertake Hajj or the pilgrimage, one of Islam’s main pillars.

The 10 days leading up to Eid are some of the most sacred days for Muslims since those who aren't undertaking the pilgrimage will be fasting, reading extra passages of the Holy Quran, praying and donating to charity.

The pilgrimage, a once-in-a-lifetime requirement for all Muslims who have the financial means and are physically able to perform its rituals, reminds us that sacrifice and flexibility are integral to both business owners and pilgrims performing the Hajj.

I haven’t performed Hajj yet, but my father who has been a few times recalls that being flexible is key to getting the most out of the spiritual journey.

A pilgrim dresses modestly, walks long distances and has to endure crowded religious sites, while remaining reserved and calm. Adopting a flexible mindset helps ease the hardships of the trip. “Be easy-going and everything will run smoothly,” he said.

In business, flexibility is also key to continuity. An important lesson I learnt from my experience as an entrepreneur is that the more flexible I became when put in an unfamiliar situation, the easier it became to handle.

For example, when the Covid-19 pandemic hit, we had to shift our entire business model to operate remotely. Although working from outside the office was an arrangement my company adopted years before the pandemic, the circumstances made the process more challenging. We had to meet clients for the first time remotely, close deals and even had to solve financial challenges without being in an office.

If we hadn’t been flexible and pivoted with every new challenge thrown our way, I would have had to downsize my business significantly and could have lost both my customers and team.

On the other hand, not embracing flexibility could be detrimental to your business. An acquaintance of mine ran a successful Greek restaurant that didn’t offer delivery or take out services to maintain exclusivity. He believed that delivery services would rob his clients from the unique experience provided in his restaurant. However, when dine-in halted amid the pandemic, he decided to not offer delivery and instead wait until the crisis ended. His restaurant eventually had to close.

Being flexible would have helped his business, but equally important was learning to sacrifice and let go of certain habits that could sabotage growth.

Sacrifice is also integral to Hajj.

When performing Hajj, pilgrims have to adhere to a code of conduct. They should refrain from using any foul language or from arguing with one another and should not fight, among other things.

Sacrifice is important if you want to be successful in business. In the initial stages, we will be sacrificing our time and our money or even a day job we had in the hopes of our dream business doing well.

The most important sacrifice I made was getting out of my comfort zone. During my teenage years, I didn’t like taking risks and I feared situations I couldn’t control. Being an entrepreneur, I had to let go of that mindset and that was probably one of the best investments I made in myself. I became more confident, fearless and welcoming of change.

As many of us will be unwinding this Eid holiday, I ask you to think about how embracing more flexibility and sacrifice can help your business in the long run.

Manar Al Hinai is an award-winning Emirati journalist and entrepreneur, who manages her marketing and communications company in Abu Dhabi.

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.”

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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Classification of skills

A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation. 

A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.

The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000. 

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

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 

Founders: Ines Mena, Claudia Ribas, Simona Agolini, Nourhan Hassan and Therese Hundt

Date started: January 2017, app launched November 2017

Based: Dubai, UAE

Sector: Private/Retail/Leisure

Number of Employees: 18 employees, including full-time and flexible workers

Funding stage and size: Seed round completed Q4 2019 - $1m raised

Funders: Oman Technology Fund, 500 Startups, Vision Ventures, Seedstars, Mindshift Capital, Delta Partners Ventures, with support from the OQAL Angel Investor Network and UAE Business Angels

Islamophobia definition

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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Updated: July 18, 2021, 6:14 AM