Emirates SkyCargo's e-commerce offering sees strong take-up in the UAE. Courtesy: Emirates SkyCargo
Emirates SkyCargo's e-commerce offering sees strong take-up in the UAE. Courtesy: Emirates SkyCargo
Emirates SkyCargo's e-commerce offering sees strong take-up in the UAE. Courtesy: Emirates SkyCargo
Emirates SkyCargo's e-commerce offering sees strong take-up in the UAE. Courtesy: Emirates SkyCargo

Emirates sees rise in e-commerce demand as Covid-19 spurs online shopping


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Emirates Delivers, the e-commerce delivery service of the airline's freight arm, reported an increase in demand from UAE consumers as the Covid-19 pandemic spurs online shopping.

The platform recorded an increase in membership and orders since March 2020, Emirates SkyCargo said in a statement on Monday.

The e-commerce platform saw a 20 per cent month-on-month jump in shipments delivered over the last month with customers shopping for a range of products including medicines, supplements, fashion, sporting goods, toys and games.

“We stand by our customers in the UAE during these challenging times to help deliver their valuable shipments from online retailers in the US," Nabil Sultan, Emirates divisional senior vice president of cargo, said.

The freight division said that despite "challenging conditions," including the suspension of all passenger flights from the UAE, Emirates SkyCargo has been connecting Emirates Delivers shipments through its freighter services from the US, offering UAE customers an average transit time of around 7 days.

"Emirates Delivers offers contactless deliveries for its packages in the UAE keeping in consideration the well-being of its customers and staff," the statement said.

Customers who register for the service are assigned a unique and free Emirates Delivers mailing address in the USA. Customers can have their online purchases from US e-commerce retailers delivered to this address where the goods can be stored free of charge for up to 30 days.

Customers can then create a shipping request to consolidate the different purchases and have them shipped to a designated UAE address anytime within 30 days.

"Customers save money by taking advantage of cheaper shipping costs within the US and between the US and UAE with Emirates," the Emirates SkyCargo said.

Emirates, the world’s biggest long-haul airline, started the online shopping package delivery service between the US and the UAE to capitalise on e-commerce growth and cope with a decline in global air freight.

Emirates SkyCargo, the largest international air cargo operator globally, launched Emirates Delivers in October 2019.

The deadly coronavirus pandemic has disrupted daily life across the world, crippled international trade, devastated air travel and plunged the global economy into the deepest recession since the Great Depression.

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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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How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less
COMPANY%20PROFILE
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COMPANY PROFILE
Name: Airev
Started: September 2023
Founder: Muhammad Khalid
Based: Abu Dhabi
Sector: Generative AI
Initial investment: Undisclosed
Investment stage: Series A
Investors: Core42
Current number of staff: 47