Violins, stamps and liquid wealth: finance executives such as Gary Dugan of Emirates NBD, left and Philip Hoffman of The Fine Art Fund Group are finding non-traditional ways to generate business. Satish Kumar / The National
Violins, stamps and liquid wealth: finance executives such as Gary Dugan of Emirates NBD, left and Philip Hoffman of The Fine Art Fund Group are finding non-traditional ways to generate business. SatiShow more

Dubai banks playing a new tune



During Dubai's boom years, bankers were more likely to be found talking debt-financed buyout deals than advising on how to buy musical instruments. But these days, Gary Dugan, the chief investment officer of Emirates NBD Private Banking, is doing precisely that.

"The price of a high-quality violin hasn't fallen in value since the year 1600," he says.

Buy a Stradivarius, Mr Dugan suggests, and you can then lend it to the Metropolitan Orchestra in New York. The pitch is nothing if not straightforward, and one that he says is increasingly striking a chord with the region's super rich.

Priceless works of art, stamp collections and musical instruments are just some of the ways that the bank is seeking to tap into the rapidly growing wealth of the Middle East, as investment bankers fall out of favour across the industry.

"When you offer something like this, it resonates," he says. "They say that's something they've really been interested in, but they've never been able to express it in an investment."

Dubai's financial sector is filling with increasing numbers of private bankers - among the few in the industry who are avoiding job cuts.

Profits have plunged at many of the world's biggest banks amid tighter regulations on trading, market headwinds from the euro-zone debt crisis and the need to curtail costs at investment banking divisions.

But wealth-management divisions are bucking the trend. Coutts, the private bank that reportedly lists Queen Elizabeth II among its customers, announced last week that it had embarked on an expansion in the Middle East.

Despite its parent, the Royal Bank of Scotland, announcing last month that it would cut 3,500 jobs worldwide during the next three years, Coutts has hired three private bankers for its regional operations. It also plans to hire a further 20 across the region, with the majority expected to be based in Dubai.

Bank of America Merrill Lynch also announced the hiring of five financial advisers in the Middle East, as part of an expansion of its wealth management division.

The American giant reduced staffing levels worldwide recently, with about 7,000 jobs cut during the fourth quarter of last year. However, the bank said it had hired 200 financial advisers worldwide in its global wealth and investment management division during the same period.

Barclays Wealth has announced a number of senior hires during the past few months, while Emirates NBD Private Banking and Falcon Private Bank, owned by Abu Dhabi's Aabar Investments, have also reported an increase in staff numbers.

Not all private banks have found business conditions easy, with the Swiss bank EFG-International withdrawing from Abu Dhabi and Dubai last year, and some in the industry are warning of a saturated market.

Banks rushed to Dubai in the past decade as vast amounts of wealth flowed through the Gulf with rising oil prices.

Between 2000 and last year, average wealth per adult in the UAE doubled - even accounting for a sharp dip in wealth after Dubai's financial crisis - while Qatari wealth increased more than fivefold, according to the Credit Suisse Global Wealth Report.

The Gulf's share of the wealth pie has increased while the share of wealth in the West has dropped. During the same period, the share of global wealth in the US decreased from 34.8 per cent to 25.1 per cent, Credit Suisse's data shows.

And European wealth is diminishing as a result of the continent's sovereign-debt crisis, says Khalid Murgian, an executive director at Goldman Sachs Asset Management.

The Middle East's numerous family offices and institutional clients have become increasingly important to the firm, with the region now accounting for a larger proportion of its assets under management than Europe.

"The Middle East will become more and more part of our revenue generation going forward," Mr Murgian says. "We continue to put money and focus and senior people here."

The huge sums of money amassed by the Gulf's merchant families have been the source of fierce competition among banks seeking to manage that wealth.

The liquid wealth in the region totals as much as US$1.2 trillion (Dh4.4tn), mostly in the hands of local families, according to a study from Booz & Company. Most of the wealth is concentrated in Saudi Arabia, followed by the UAE, Kuwait and Qatar. But tapping into the wealth of the region's family offices requires a top-to-bottom view of a client's affairs and finances that is rarely best served by investment banks, Mr Dugan adds.

"Because the clients here don't distinguish between their corporate and private wealth, the best business model for serving them is private banking," he says.

Getting to grips with a family's inner workings, such as who the head of the family wants to inherit his wealth and teaching younger members of the family how to invest, makes for a "more engaging" relationship.

"It's also a much more pleasant relationship with the client when you're talking with the family and encouraging the growth of the family, rather than just trying to make money," he says.

Guide to intelligent investing
Investing success often hinges on discipline and perspective. As markets fluctuate, remember these guiding principles:
  • Stay invested: Time in the market, not timing the market, is critical to long-term gains.
  • Rational thinking: Breathe and avoid emotional decision-making; let logic and planning guide your actions.
  • Strategic patience: Understand why you’re investing and allow time for your strategies to unfold.
 
 
Sour%20Grapes
%3Cp%3E%3Cstrong%3EAuthor%3A%20%3C%2Fstrong%3EZakaria%20Tamer%3Cbr%3E%3Cstrong%3EPublisher%3A%20%3C%2Fstrong%3ESyracuse%20University%20Press%3Cbr%3E%3Cstrong%3EPages%3A%20%3C%2Fstrong%3E176%3C%2Fp%3E%0A
Game Changer

Director: Shankar 

Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram

Rating: 2/5

MATCH INFO

Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid

When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid

Cryopreservation: A timeline
  1. Keyhole surgery under general anaesthetic
  2. Ovarian tissue surgically removed
  3. Tissue processed in a high-tech facility
  4. Tissue re-implanted at a time of the patient’s choosing
  5. Full hormone production regained within 4-6 months
COMPANY%20PROFILE%20
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3EAlmouneer%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202017%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Dr%20Noha%20Khater%20and%20Rania%20Kadry%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EEgypt%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%20%3C%2Fstrong%3E120%3Cbr%3E%3Cstrong%3EInvestment%3A%20%3C%2Fstrong%3EBootstrapped%2C%20with%20support%20from%20Insead%20and%20Egyptian%20government%2C%20seed%20round%20of%20%3Cbr%3E%243.6%20million%20led%20by%20Global%20Ventures%3Cbr%3E%3C%2Fp%3E%0A
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
The alternatives

• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.

• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.

• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.

2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.

• PayPal is probably the best-known online goods payment method - usually used for eBay purchases -  but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.

The specs

Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now

Globalization and its Discontents Revisited
Joseph E. Stiglitz
W. W. Norton & Company

Company%20Profile
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Raha%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202022%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Kuwait%2FSaudi%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Tech%20Logistics%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%2414%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Soor%20Capital%2C%20eWTP%20Arabia%20Capital%2C%20Aujan%20Enterprises%2C%20Nox%20Management%2C%20Cedar%20Mundi%20Ventures%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%20166%3C%2Fp%3E%0A

The Comeback: Elvis And The Story Of The 68 Special
Simon Goddard
Omnibus  Press

Navdeep Suri, India's Ambassador to the UAE

There has been a longstanding need from the Indian community to have a religious premises where they can practise their beliefs. Currently there is a very, very small temple in Bur Dubai and the community has outgrown this. So this will be a major temple and open to all denominations and a place should reflect India’s diversity.

It fits so well into the UAE’s own commitment to tolerance and pluralism and coming in the year of tolerance gives it that extra dimension.

What we will see on April 20 is the foundation ceremony and we expect a pretty broad cross section of the Indian community to be present, both from the UAE and abroad. The Hindu group that is building the temple will have their holiest leader attending – and we expect very senior representation from the leadership of the UAE.

When the designs were taken to the leadership, there were two clear options. There was a New Jersey model with a rectangular structure with the temple recessed inside so it was not too visible from the outside and another was the Neasden temple in London with the spires in its classical shape. And they said: look we said we wanted a temple so it should look like a temple. So this should be a classical style temple in all its glory.

It is beautifully located - 30 minutes outside of Abu Dhabi and barely 45 minutes to Dubai so it serves the needs of both communities.

This is going to be the big temple where I expect people to come from across the country at major festivals and occasions.

It is hugely important – it will take a couple of years to complete given the scale. It is going to be remarkable and will contribute something not just to the landscape in terms of visual architecture but also to the ethos. Here will be a real representation of UAE’s pluralism.

How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

MATCH INFO

Manchester United v Brighton, Sunday, 6pm UAE

THE SPECS

Engine: 6.75-litre twin-turbocharged V12 petrol engine 

Power: 420kW

Torque: 780Nm

Transmission: 8-speed automatic

Price: From Dh1,350,000

On sale: Available for preorder now

The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now
German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution