• People browse the newly opened Yas Mall on November 19, 2014, the first day the mall opened to the public. Silvia Razgova / The National
    People browse the newly opened Yas Mall on November 19, 2014, the first day the mall opened to the public. Silvia Razgova / The National
  • Shoppers walk through Yas Mall on July 18, 2015. Christopher Pike / The National
    Shoppers walk through Yas Mall on July 18, 2015. Christopher Pike / The National
  • The mall has more than 370 stores and 60 food and beverage outlets. Silvia Razgova / The National
    The mall has more than 370 stores and 60 food and beverage outlets. Silvia Razgova / The National
  • Yas Mall is at the heart of the entertainment offering on Yas Island with its hassle-free shopping. Silvia Razgova / The National
    Yas Mall is at the heart of the entertainment offering on Yas Island with its hassle-free shopping. Silvia Razgova / The National

Malls of the UAE, part 3: Yas Mall a growing retail palace


Andrew Scott
  • English
  • Arabic

Yas Mall celebrated its first year anniversary on November 19. It was the first super regional mall to open in Abu Dhabi as a serious competitor to the big boys up the road in Dubai – Mall of the Emirates and The Dubai Mall. As soon as it opened, Aldar, its developer, became the biggest owner and operator of retail space in the capital.

Built on Yas Island, it has more than 370 stores and 60 food and beverage outlets, with more than 10,000 covered car parking slots. The mall is a destination that could be said to be ahead of its time, as some of the developments on Yas Island have been slow in fulfilment. This has in turn slowed the footfall in the retail space.

Yas Mall is at the heart of the entertainment offering on Yas Island, close to the Yas Marina Circuit, Yas Links and Yas Viceroy, so it is doubtful you will ever forget where you are. It has a 20-screen cinema, kids’ edutainment zones and a great esplanade of F&B offerings on the “Cascade” – an outdoor decked area overlooking a terrace of fountains and a direct tunnel link to Ferrari World.

Tracking footfall

Yas Mall is fully leased, according to Aldar. It has recently added some unique attractions with the Chaloub Group, one of the region’s biggest retailing operations, at the start of November, opening a new concept – Tryano.

A multi-level 200,000 square foot department store, it may look more like an Ibiza nightclub with brilliant white walls and flooring and chrome finishing, but it stocks some of the biggest brands in the world, from Louboutin to Mulberry, along with a French restaurant .

Tryano sits well in the beautifully outfitted concourses and thoroughfares of the mall.

Yas Mall has spared little expense, with low leather couches sprinkled throughout for weary shoppers to ease their aching feet. The jazz music played throughout the mall adds that touch of enigmatic class that competitors can only aspire to. “Thursday night and Friday are very busy, but it is a quiet place to work generally. The weeks are long working here,” said a kiosk sales assistant.

An analyst’s view

Matthew Green, the head of research and consultancy at the property consultant CBRE, believes all malls need time to gain traction, and Yas will become the mall it aspires to be as Abu Dhabi develops.

“It is a destination mall without all the infrastructure, presently,” he says. “Dubai Mall took two years to gain any real footfall, and that was sitting at the bottom of the Burj Khalifa. Local shoppers have to understand a mall, where to shop and where to park, before they use it regularly, and as for tourists, when the Midfield Terminal Complex at the airport is completed and more visitors come through the capital, Yas Mall will feel the benefit.”

The outlook

Yas Island and the neighbouring of Al Reef are still to be fully developed as residential neighbourhoods, which has inhibited the traffic at Yas Mall. Aldar has recently announced another 1,000 villas at West Yas and a new apartment development called Mayan, so the momentum is slowly growing, which will help the mall’s ambience. The mall itself is a bright, modern retail palace that could grace any capital. However, with many smaller malls between it and the main population on the island, the draw for bringing people over the bridges is tough.

Any hidden gems?

What could remain hidden in a bright, airy mall only opened 53 weeks ago? Just like many things, you can find them when you are not looking. If you enjoy football and eating, then I’ve found the perfect spot for you. Hidden on the second floor of the Champions League Experience store is a 100-seat terraced restaurant that faces a 200 inch screen – it’s called Stadium for good reason. The eatery only stays open for showing big football games if there has been a booking for a minimum of 10 people. For the recent Real Madrid vs Barcelona game there wasn’t a spare seat in the house.

In conclusion

Yas Mall is the right mall at not quite the right time. But things will likely change. One is happy to window shop, but the lack of other customers made me feel slightly self conscious. It’s definitely worth a visit and if I lived in the capital it would become my mall of choice for the masses of parking, hassle-free shopping and the number of F&B outlets on offer.

ascott@thenational.ae

UAE jiu-jitsu squad

Men: Hamad Nawad and Khalid Al Balushi (56kg), Omar Al Fadhli and Saeed Al Mazroui (62kg), Taleb Al Kirbi and Humaid Al Kaabi (69kg), Mohammed Al Qubaisi and Saud Al Hammadi (70kg), Khalfan Belhol and Mohammad Haitham Radhi (85kg), Faisal Al Ketbi and Zayed Al Kaabi (94kg)

Women: Wadima Al Yafei and Mahra Al Hanaei (49kg), Bashayer Al Matrooshi and Hessa Al Shamsi (62kg)

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K Coetzer 95, J Siddique 3-49, R Mustafa 3-35

UAE 224-3 in 43,5 overs

C Suri 67, B Hameed 63 not out

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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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