About 63 per cent of professionals in the UAE would prefer to be self-employed or have their own business if given the choice, according to a survey by jobs portal Bayt.com and market research company YouGov.
Respondents to the survey cited a better work-life balance, personal fulfilment, the ability to give back to the community and a higher income as the top reasons for wanting to start a business in the Emirates, Bayt.com and YouGov said.
The survey polled 2,727 people in more than 16 countries, including the UAE, Saudi Arabia, Kuwait, Oman, Qatar, Bahrain and Lebanon, between June 22 and July 19 this year.
“Entrepreneurs are part of this rapidly changing landscape where many businesses are adopting entirely new ways of work that will not necessarily revert to pre-crisis conditions,” said Ola Haddad, director of human resources at Bayt.com.
Small and medium enterprises are the backbone of the UAE economy, with the government introducing numerous economic support packages to help business owners weather the Covid-19 pandemic.
The UAE, the Arab world’s second-largest economy, has also undertaken several economic, legal and social reforms to strengthen its business environment, increase foreign direct investment, attract skilled workers and provide incentives to companies to set up or expand their operations.
The government’s overhaul of a number of visa programmes has also boosted opportunities for professionals to set up their own businesses.
These include the 10-year visa, which is granted to investors, entrepreneurs, skilled professionals who earn a monthly salary of more than Dh30,000 ($8,167), exceptional talents, scientists and professionals, outstanding students and graduates, property investors, humanitarian pioneers and front-line heroes.
A green visa provides a five-year residency for skilled employees without the need of a sponsor or employer.
The UAE’s efforts are paying off, with the Emirates ranking first worldwide in the Global Entrepreneurship Index in February this year, outperforming major global economies such as the US, the UK, Japan, Canada, South Korea and some EU countries, according to London-based research company Global Entrepreneurship Monitor.
Meanwhile, about 64 per cent of respondents to the entrepreneurship survey are currently thinking about starting their own business, 20 per cent tried setting up a company in the past and 7 per cent said they had never thought about branching out on their own.
However, 30 per cent of respondents in the UAE said they would prefer to seek employment with a company as it provided a regular income, job security and opportunities to learn new skills.
Thirty-two per cent of professionals in the Mena region who have already started their own businesses said they either wanted “greater independence in what I want to achieve” or “wanted more income”, the survey said.
“Entrepreneurship continues to be a growing trend in the UAE … [and] has become more popular than ever before, with many entrepreneurs looking to grow their start-ups and establish business,” the survey said.
“In fact, over six in 10 respondents are planning to hire for their business in the next year.”
The perceived image of entrepreneurs is also positive, with 82 per cent of UAE respondents saying they are opportunity-driven and 85 per cent believing they help to create new jobs.
“Entrepreneurs are the primary source of new job creation, increasing innovation and eventually creating a stronger economy,” said Zafar Shah, research director at YouGov.
Of those who are self-employed in the Mena region, 60 per cent took the first step to establish their business in the past five years, the survey found.
When it comes to the current stage of their businesses, 35 per cent of self-employed professionals are at the start-up phase, 27 per cent said their company is established and performing well, and 21 per cent said their business is not doing well.
The top concerns for UAE respondents while setting up their businesses include financing (56 per cent), establishing the right contacts (40 per cent) and the uncertainty of profit and income (36 per cent), the survey said.
Thirty per cent of respondents believe that innovation is key to succeeding as an entrepreneur, followed by employing the right people (24 per cent) and access to funding (22 per cent).
Meanwhile, the most popular sectors for entrepreneurs to launch a business include commerce, trade, retail, real estate, property development, e-commerce and consumer goods.
UAE tour of Zimbabwe
All matches in Bulawayo
Friday, Sept 26 – UAE won by 36 runs
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I
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.”
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Reading List
Practitioners of mindful eating recommend the following books to get you started:
Savor: Mindful Eating, Mindful Life by Thich Nhat Hanh and Dr Lilian Cheung
How to Eat by Thich Nhat Hanh
The Mindful Diet by Dr Ruth Wolever
Mindful Eating by Dr Jan Bays
How to Raise a Mindful Eaterby Maryann Jacobsen
UAE currency: the story behind the money in your pockets
The more serious side of specialty coffee
While the taste of beans and freshness of roast is paramount to the specialty coffee scene, so is sustainability and workers’ rights.
The bulk of genuine specialty coffee companies aim to improve on these elements in every stage of production via direct relationships with farmers. For instance, Mokha 1450 on Al Wasl Road strives to work predominantly with women-owned and -operated coffee organisations, including female farmers in the Sabree mountains of Yemen.
Because, as the boutique’s owner, Garfield Kerr, points out: “women represent over 90 per cent of the coffee value chain, but are woefully underrepresented in less than 10 per cent of ownership and management throughout the global coffee industry.”
One of the UAE’s largest suppliers of green (meaning not-yet-roasted) beans, Raw Coffee, is a founding member of the Partnership of Gender Equity, which aims to empower female coffee farmers and harvesters.
Also, globally, many companies have found the perfect way to recycle old coffee grounds: they create the perfect fertile soil in which to grow mushrooms.
Killing of Qassem Suleimani
