Tens of thousands of Muslim pilgrims moving around the Kaaba, the black cube seen at center, inside the Grand Mosque,  in Mecca, Saudi Arabia, Sunday, Oct. 30, 2011. The annual Islamic pilgrimage draws 2.5 million visitors each year, making it the largest yearly gathering of people in the world. The Hajj will start on 5 November. (AP Photo/Hassan Ammar) *** Local Caption ***  Mideast Saudi Arabia Hajj.JPEG-0cf62.jpg
Al Hilal Bank's new Qibla card is offering customers a zero profit rate for Haj and Umrah-related travel. Hassan Ammar / AP Photo

Deals of the week: 'Mission impossible' card helps users locate Qibla



Al Hilal Bank has launched the world's first credit card that incorporates a digital compass to help customers locate Qibla, the direction Muslims must face while performing Salah.

The Abu Dhabi-based Islamic lender says the Qibla credit card, which was developed in conjunction with MasterCard and Infotec Systems, offers a zero profit rate for up to one year for Haj and Umrah-related travel, while customers will also receive complimentary travel vouchers worth Dh500 for their pilgrimages.

"It was like a 'mission impossible' task when the bank approached us with the idea of having a compass built into a payment card that would indicate the Qibla direction from anywhere in the world," says Eyad Al-Kourdi, the vice president and UAE country manager for MasterCard.

A six-month zero profit rate applies for travel, electronic, jewellery and other purchases and cardholders can make contributions to UAE Red Crescent by rounding up the price of their local transactions to the nearest multiples of Dh5, Dh10 or Dh100.

"Our new offering enables cardholders to benefit from a rich array of exclusive benefits and special privileges, says Mohamed Zaqout, the head of Al Hilal's personal banking group.

Other benefits include being able to transfer balances from conventional credit cards at a zero profit rate for up to 12 months. The bank says this is to encourage customers to shift to Islamic cards and to help them pay off their high-interest-bearing card balances.

Go to www.alhilalbank.ae or call 800 666666 for details.

Emirates Islamic Bank (EIB) and Dubai Bank, subsidiaries of Emirates NBD, have kicked off a rupee remittance campaign that offers customers reduced exchange rates and zero processing fees.

The lenders launched the campaign, which ends on October 31, after a surge in remittances from the UAE to India as workers rushed to take advantage of the weak rupee.

"The recent change in the UAE dirham-Indian rupee exchange rate has witnessed a surge in remittances by our Indian customers and we would like to provide our customers the maximum benefit from such remittances through providing optimum money transfer solutions," says Faisal Aqil, the deputy chief executive of consumer wealth management at EIB and Dubai Bank.

India last year received a record US$64 billion (Dh235bn) in remittances, up from $54bn in 2010, according to the World Bank.

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July 5, 1994: Jeff Bezos founds Cadabra Inc, which would later be renamed to Amazon.com, because his lawyer misheard the name as 'cadaver'. In its earliest days, the bookstore operated out of a rented garage in Bellevue, Washington

July 16, 1995: Amazon formally opens as an online bookseller. Fluid Concepts and Creative Analogies: Computer Models of the Fundamental Mechanisms of Thought becomes the first item sold on Amazon

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1998: Amazon acquires IMDb, its first major acquisition. It also starts selling CDs and DVDs

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2002: Amazon forms what would become Amazon Web Services, opening the Amazon.com platform to all developers. The cloud unit would follow in 2006

2003: Amazon turns in an annual profit of $75 million, the first time it ended a year in the black

2005: Amazon Prime is introduced, its first-ever subscription service that offered US customers free two-day shipping for $79 a year

2006: Amazon Unbox is unveiled, the company's video service that would later morph into Amazon Instant Video and, ultimately, Amazon Video

2007: Amazon's first hardware product, the Kindle e-reader, is introduced; the Fire TV and Fire Phone would come in 2014. Grocery service Amazon Fresh is also started

2009: Amazon introduces Amazon Basics, its in-house label for a variety of products

2010: The foundations for Amazon Studios were laid. Its first original streaming content debuted in 2013

2011: The Amazon Appstore for Google's Android is launched. It is still unavailable on Apple's iOS

2014: The Amazon Echo is launched, a speaker that acts as a personal digital assistant powered by Alexa

2017: Amazon acquires Whole Foods for $13.7 billion, its biggest acquisition

2018: Amazon's market cap briefly crosses the $1 trillion mark, making it, at the time, only the third company to achieve that milestone

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UAE currency: the story behind the money in your pockets
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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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