Wadah Al Taha is the chief investment officer at the Dubai-based investment firm Al Zarooni Group. The Iraq-born executive, 56, who moved to the UAE in 1998, is in charge of managing equities for the company, but he also advises on regulation and is a frequent public commentator on topics related to the UAE bourses.
Describe your financial journey so far.
I would say over the past 10 years my journey has been stable. Before that it was volatile, there were some ups and downs, some of the changes were totally out of my control – the wars in Iraq, for example. Inflation in Iraq began to surge from 1987 through to 1995. It began with the end of the 10-year war with Iran and then morphed into hyper-inflation – three digits and not two – with the invasion of Kuwait. Everyone was burning into their savings, forget trying to save. An employee was lucky to buy a pack of eggs with their monthly salary. I remember taking up two jobs: one as a university professor, and in the evening I’d work a second job, an auditor at an accounting firm.
Are you a spender or saver?
I am a saver. It’s more related to my personality. I feel more secure when I save. It’s a family-related issue. When you have a family located in different places in the world, it’s better to save. I started saving in the 1980s when I was in my 30s. It was the embargo on Iraq that pushed me. I was also studying. I decided to work and study. I was in a very good financial position but I thought work would give me more savings.
What is your philosophy towards money?
Money is a tool. It simply needs to be directed to the right places, where it’s needed. I consider my needs first and hardly or rarely think of luxury issues.
Have you made any financial mistakes along the way?
Yes. I wrongly timed the real estate market during the global financial crisis. I invested in off-plan property with developers and lost quite a bit of money. I wrongly assumed that the terms of the contract would be fulfilled, on completion basis, but the developers didn’t even progress 10 per cent. I don’t blame the developers, but I should have been more conservative in this matter.
If you won Dh1 million, what would you do with it?
I would place 25 per cent towards children’s orphanages all over the world. It’s a cause that is really important to me. Childhood really needs to be taken care of and there’s a lot of torture that happens. The remaining 75 per cent I would put in a sukuk (Islamic bond) programme. It is more secure; the management is more conservative; it draws on attractive assets and is Sharia-compliant. The annual returns are modest, but for the future it is a safe alternative.
What has been your biggest financial lesson?
There’s a target for everything. One should not be greedy. This is what’s happening in the UAE equities market right now. When you reach your target you should stay out until the market corrects. This is my advice to investors currently in the stock market.
What do you enjoy spending money on?
Travelling – I would like to go to South America. It’s a new world and I would love to discover it. The second thing I enjoy spending my money on is agriculture. I support my father’s date palms in Iraq from time to time.
halsayegh@thenational.ae
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