Saeed Lootah, founder of the world's first Islamic bank and a prominent Dubai businessman, has died at the age of 97.
"He was a self-made merchant, with a mark on Dubai's economy," Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said on Twitter. "I have known in him a bright mind, wisdom and tranquility."
The Emirati entrepreneur set up Dubai Islamic Bank, the UAE's biggest Islamic lender, in 1975 to provide a Sharia-compliant alternative to conventional banking.
"We are deeply saddened on the passing of Haj Saeed Bin Ahmed Al Lootah, the founder of Dubai Islamic Bank. Our success and legacy of being the first Islamic Bank became a reality due to his vision and dedication," DIB said on its Twitter account.
In January, DIB completed its acquisition of Al Noor Bank, in deal that will create one of the largest Islamic banks in the world, with total assets of more than Dh275 billion.
Tributes to Mr Al Lootah poured in from across the UAE's business community over social media.
"Islamic Finance sadly lost another pioneer in Haj Saeed Bin Ahmed Al Lootah," Iqbal Khan, chief executive of Fajr Capital, said on Twitter. "We owe him and so many of our industry's giants a debt of gratitude."
Hussain Sajwani, chairman of Damac, tweeted that the UAE has "lost one of its pioneering thought leaders".
"Hajj Saeed Ahmed Al Lootah has played a pivotal role in the development of our nation, establishing a foundation for us to thrive in global economies with the creation of the first Islamic Bank. His name and contributions will remain etched in our hearts for posterity."
In addition to DIB, the Emirati businessman also established a construction company in 1956, the S.S.Lootah Contracting Company, as a joint venture with his brother Sultan.
Since then, the family-owned S.S. Lootah Group diversified into various key sectors including real estate, energy, food, hospitality, financial services, applied research, education and healthcare.
Born in 1923 in Dubai, the Islamic finance pioneer died on Sunday. His lifetime spanned sea faring in a quest for pearls to establishing various companies, societies and colleges.
A firm believer in the importance of education, he set up Dubai Medical College and Dubai Pharmacy College.
On the S.S. Lootah Group's website, the banker and philanthropist said "business exists fundamentally to serve people".
In a video highlighting his musings, he speaks about the difference in mindset between generations of traders.
"In the old days, traders were different than today. Today traders want to make money, but the early traders wanted to build up the world."
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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Profile of RentSher
Started: October 2015 in India, November 2016 in UAE
Founders: Harsh Dhand; Vaibhav and Purvashi Doshi
Based: Bangalore, India and Dubai, UAE
Sector: Online rental marketplace
Size: 40 employees
Investment: $2 million
New process leads to panic among jobseekers
As a UAE-based travel agent who processes tourist visas from the Philippines, Jennifer Pacia Gado is fielding a lot of calls from concerned travellers just now. And they are all asking the same question.
“My clients are mostly Filipinos, and they [all want to know] about good conduct certificates,” says the 34-year-old Filipina, who has lived in the UAE for five years.
Ms Gado contacted the Philippines Embassy to get more information on the certificate so she can share it with her clients. She says many are worried about the process and associated costs – which could be as high as Dh500 to obtain and attest a good conduct certificate from the Philippines for jobseekers already living in the UAE.
“They are worried about this because when they arrive here without the NBI [National Bureau of Investigation] clearance, it is a hassle because it takes time,” she says.
“They need to go first to the embassy to apply for the application of the NBI clearance. After that they have go to the police station [in the UAE] for the fingerprints. And then they will apply for the special power of attorney so that someone can finish the process in the Philippines. So it is a long process and more expensive if you are doing it from here.”
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