Constructive Trading will receive funding as part of a Guarantee Scheme rolled out by The Mohammed Bin Rashid Innovation Fund of the Ministry of Finance. Reem Mohammed/The National
Constructive Trading will receive funding as part of a Guarantee Scheme rolled out by The Mohammed Bin Rashid Innovation Fund of the Ministry of Finance. Reem Mohammed/The National
Constructive Trading will receive funding as part of a Guarantee Scheme rolled out by The Mohammed Bin Rashid Innovation Fund of the Ministry of Finance. Reem Mohammed/The National
Constructive Trading will receive funding as part of a Guarantee Scheme rolled out by The Mohammed Bin Rashid Innovation Fund of the Ministry of Finance. Reem Mohammed/The National

Business

Mohammed bin Rashid Innovation Fund backs construction software firm

Constructive Trading improves the traceability of steel rebar, reducing the amount of scrapped material on construction sites

Fareed Rahman
Fareed Rahman

March 30, 2020

  • English
  • Arabic

The Mohammed bin Rashid Innovation Fund (MBRIF), an initiative rolled out by the Ministry of Finance will provide finance to help a Dubai-based firm grow its business.

Constructive Trading, which specialises in reducing construction industry waste, will receive funding as part of a Guarantee Scheme operated by the MBRIF.

“The MBRIF launched the Guarantee Scheme to provide government guarantees and help members in small funding in the beginning, to then enable the owners of these innovative projects to benefit from Emirates Development Bank, and apply to the accelerator programme, which allows additional funding,” said Fatima Alnaqbi, chief innovation officer MBRIF and a representative of the Ministry of Finance.

“Constructive Trading has created a groundbreaking innovative solution to reduce waste and increase efficiency for its clients in the construction industry, to be a prime example of the type of businesses we look for to include in the Guarantee Scheme,” Ms Alnaqbi added.

Construction Trading has developed a software that increases the efficiency of rebar use by improving traceability, which helps to cut the amount of steel that is wasted on sites.

The Mohammed bin Rashid Innovation Fund is a federal initiative launched by the Ministry of Finance. Since its launch in 2015, the fund has supported innovators through its first programme, the Guarantee Scheme, which is operated by the Emirates Development Bank.

In addition to Constructive Trading, members of the MBRIF Guarantee Scheme programme include Oliv, a jobs portal offering internships and graduate roles, Pure Harvest, a company focusing on agribusiness, and Lamsa, an award-winning Arabic edutainment mobile app.

“The UAE provides a great environment for companies like us to grow and operate in, particularly with initiatives such as the MBRIF, which enables business growth and provides financing options that will help us scale up operations,” said Andrew James Woolnough, founder of Constructive Trading.

“Being accepted into the MBRIF Guarantee Scheme will play an essential part in our team being able to further develop our software, with the potential to extend our reach further than ever before.”

The Mohammed bin Rashid Innovation Fund  started its second programme, named the MBRIF Accelerator, in 2018. This is aimed at boosting the growth potential of innovative businesses shaping the future of UAE’s economy. Coaching and other services are offered to companies as part of the programme, which is operated by EY (Ernst & Young).

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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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Iftar programme at the Sheikh Mohammed Centre for Cultural Understanding

Established in 1998, the Sheikh Mohammed Centre for Cultural Understanding was created with a vision to teach residents about the traditions and customs of the UAE. Its motto is ‘open doors, open minds’. All year-round, visitors can sign up for a traditional Emirati breakfast, lunch or dinner meal, as well as a range of walking tours, including ones to sites such as the Jumeirah Mosque or Al Fahidi Historical Neighbourhood.

Every year during Ramadan, an iftar programme is rolled out. This allows guests to break their fast with the centre’s presenters, visit a nearby mosque and observe their guides while they pray. These events last for about two hours and are open to the public, or can be booked for a private event.

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How much do leading UAE’s UK curriculum schools charge for Year 6?
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