Rehan Merchant worked hard training to inherit Emirates Neon Group from his father, who still sits on its board. Sarah Dea / The National
Rehan Merchant worked hard training to inherit Emirates Neon Group from his father, who still sits on its board. Sarah Dea / The National

ENG chief executive knows business is good when the signs go up



Rehan Merchant, 38, is the chief executive of the family business Emirates Neon Group, which creates, installs and maintains outdoor signage and offers brand consultancy and web design. His father, the ENG chairman Hanif Merchant, built up the business after moving to Dubai from Pakistan in 1969.

6.15am

I wake up and have a high-protein breakfast of eggs, yoghurt and fruit. I take a shower and rush to work. We’ve closed our offices on Sheikh Zayed Road for refurbishment, so now I head to our office on Al Wahda Road in Sharjah, which is a 40-minute drive from my villa in Emirates Hills. I’m driven to work, so the distance doesn’t matter because my BlackBerry kicks in five minutes after I’ve left home. It’s usually a quiet journey. The traffic is much worse on the other side of the road, so I wave to all those cars stuck in traffic.

8am

I arrive at work. My father still comes to work before me and leaves whenever he wishes to. The business is still very much a family concern. Even when I was 13, I’d come to the office to be involved in what my father was doing. When I was at university in the UK, I came back every summer and trained. People think “you run your father’s company, so you had your place created for you”, but that wasn’t the case. My father said “you need to be a trainee in all areas first – in sales, admin and the manufacturing processes”. On my second day back from university, I was told to climb a 60-foot scaffold. Because of that training, I know how long different tasks take.

9am

I set priorities for the day. I’ll walk around saying “we need to achieve X, Y and Z”, whether it’s admin or sales. It’s a reminder to get edged on.

10am

I meet with the operations team, who have flown in from Bahrain. We have 1,200 employees in 13 countries, including China, Kuwait and Oman, and we’re growing within those countries.

11am

A big ad agency chief calls and says: “Rehan, we need to meet. We have an urgent brief. Let’s have coffee”. So we brainstorm. Creativity is limited because there are lots of restrictions in terms of new advertising mediums. Say you want to have digital boards on Sheikh Zayed Road. You need a lot of regulatory approvals, partly because people might look at the sign instead of concentrating on the road. So brands are trying instead to link mediums together. They might have radio and social media talk about a certain sign. Then they do an Instagram campaign, with a trigger that makes people go to a Facebook page. Most meetings aren’t about how much money a client is going to give us, they’re about how we can deliver something differently. Sometimes we’re wrong, but we’re coming out of experiences that have shaped our understanding. So we might say “this worked for this car manufacturer”, and we’re not afraid to say: “We think this won’t work”. People say summer and Ramadan are traditionally weak times of the year, but I disagree. The economy has grown to a level where it’s continually busy. I often leave client meetings thinking: “Is Dubai going to be talking about this?” That’s the barometer to the success of an outdoor campaign.

1pm

Lunch is a light sandwich or ordered-in grilled chicken or fish. I have half an hour with the door closed and no one allowed to enter. I look at social media and surf the net to see what’s going on in Dubai. If I’m out with clients, we’ll go to a restaurant in one of Dubai’s three hotspots – DIFC, Souk Al Bahar or Media City.

3.30pm

The only thing that never changes in my daily routine is that I pray five times a day. We have a mosque in our office, and if I’m driving around and it’s time for prayer I’ll park up and pray.

4pm

I go to a media buying agency. I talk to different clients and set up objectives and perimeters for their ad campaign.

6pm

As my driver takes me home, I pass some of our billboards. Our big signs at the moment include ads for Aigner luxury watches, OSN, Etisalat and du. Once home I hit the gym to meet my personal trainer. Lots of battles are done keeping myself fit.

8.30pm

I eat out 90 per cent of the time. I like Zuma for Japanese, Hakkasan for Chinese and La Petite Maison for French. I also like to go to a nice Lebanese to drink Moroccan tea, relax with friends and play backgammon. I go to bed at about 2am.

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The years Ramadan fell in May

1987

1954

1921

1888

RESULTS

6pm: Al Maktoum Challenge Round-2 – Group 1 (PA) $55,000 (Dirt) 1,900m
Winner: Rajeh, Antonio Fresu (jockey), Musabah Al Muhairi (trainer)

6.35pm: Oud Metha Stakes – Rated Conditions (TB) $60,000 (D) 1,200m
Winner: Get Back Goldie, William Buick, Doug O’Neill

7.10pm: Jumeirah Classic – Listed (TB) $150,000 (Turf) 1,600m
Winner: Sovereign Prince, James Doyle, Charlie Appleby

7.45pm: Firebreak Stakes – Group 3 (TB) $150,000 (D) 1,600m
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8.20pm: Al Maktoum Challenge Round-2 – Group 2 (TB) $350,000 (D) 1,900m
Winner: Hot Rod Charlie, William Buick, Doug O’Neill

8.55pm: Al Bastakiya Trial – Conditions (TB) $60,000 (D) 1,900m
Winner: Withering, Adrie de Vries, Fawzi Nass

9.30pm: Balanchine – Group 2 (TB) $180,000 (T) 1,800m
Winner: Creative Flair, William Buick, Charlie Appleby

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.”

COMPANY PROFILE

Company name: Nomad Homes
Started: 2020
Founders: Helen Chen, Damien Drap, and Dan Piehler
Based: UAE and Europe
Industry: PropTech
Funds raised so far: $44m
Investors: Acrew Capital, 01 Advisors, HighSage Ventures, Abstract Ventures, Partech, Precursor Ventures, Potluck Ventures, Knollwood and several undisclosed hedge funds

Afro salons

For women:
Sisu Hair Salon, Jumeirah 1, Dubai
Boho Salon, Al Barsha South, Dubai
Moonlight, Al Falah Street, Abu Dhabi
For men:
MK Barbershop, Dar Al Wasl Mall, Dubai
Regency Saloon, Al Zahiyah, Abu Dhabi
Uptown Barbershop, Al Nasseriya, Sharjah

COMPANY PROFILE

Name: Xpanceo

Started: 2018

Founders: Roman Axelrod, Valentyn Volkov

Based: Dubai, UAE

Industry: Smart contact lenses, augmented/virtual reality

Funding: $40 million

Investor: Opportunity Venture (Asia)

COMPANY PROFILE

Name: SmartCrowd
Started: 2018
Founder: Siddiq Farid and Musfique Ahmed
Based: Dubai
Sector: FinTech / PropTech
Initial investment: $650,000
Current number of staff: 35
Investment stage: Series A
Investors: Various institutional investors and notable angel investors (500 MENA, Shurooq, Mada, Seedstar, Tricap)

MATCH STATS

Wolves 0

Aston Villa 1 (El Ghazi 90+4' pen)

Red cards: Joao Moutinho (Wolves); Douglas Luiz (Aston Villa)

Man of the match: Emi Martinez (Aston Villa)