Dubai, United Arab Emirates, March 26, 2013: Zbigniew Nowak, President of the Association of Polish Butchers and Producers of Processed Meat, right, speaks during a news conference at the Grand Hyatt Hotel in Dubai on March 26, 2013. Christopher Pike / The National
Dubai, United Arab Emirates, March 26, 2013: Zbigniew Nowak, President of the Association of Polish Butchers and Producers of Processed Meat, right, speaks during a news conference at the Grand Hyatt Hotel in Dubai on March 26, 2013. Christopher Pike / The National
Dubai, United Arab Emirates, March 26, 2013: Zbigniew Nowak, President of the Association of Polish Butchers and Producers of Processed Meat, right, speaks during a news conference at the Grand Hyatt Hotel in Dubai on March 26, 2013. Christopher Pike / The National
Dubai, United Arab Emirates, March 26, 2013: Zbigniew Nowak, President of the Association of Polish Butchers and Producers of Processed Meat, right, speaks during a news conference at the Grand Hyatt

Polish meat lobby in Emirates to fight taint of horse scandal


Gillian Duncan
  • English
  • Arabic

The Polish meat industry has embarked on a charm offensive in the UAE amid the ongoing fallout from the horsemeat scandal.

Earlier this year it was discovered that foods in Europe that were advertised as beef contained undeclared horsemeat and pork.

Some of the UK's largest supermarkets were embroiled in the scandal, which also reached Ikea, after it found horsemeat in a batch of meatballs on sale in Europe.

In Ireland, the first European country to report the presence of horsemeat in beef products, the government claimed to have traced the source of the infected meat back to suppliers in Poland.

But an envoy of Polish organisations at the launch of a campaign to promote European meat in the UAE yesterday denied that meat producers from their country were responsible.

"We are not connected to the reprocessing. We don't have any negative results of investigations which we are [conducting] at the moment in our country," said Andrzej Lysiak, the first counsellor for the Polish Embassy in Abu Dhabi.

The president of the Association of Polish Butchers and Producers of Processed Meat denied any involvement on the part of his members.

"No Polish company is involved in this horsemeat scandal. It doesn't come from Poland," said Zbigniew Nowak. "In our companies we have to have clear evidence of not only what is inside the meat but also the producer that the meat comes from. All meat has a passport and the production of the meat is very rigorously followed."

But Poland's chief veterinarian admitted late last month that horse DNA had been detected in three meat processing plants, according to Polish radio.

The president of the Polish Meat Association, Witold Choiski, said it was too early to blame meat processors from the country, which could have received contaminated meat from other suppliers, reported the radio station.

But it seems that not all food producers are convinced.

Meat exports from the country have declined by 30 per cent this year, according to the Polish Meat Association.

Poland exports US$152 million (Dh558.3m) of agricultural products to the UAE annually, which includes meat products.

The new European meat campaign, which is targeting the UAE, Russia and China, aims to boost the figure. The initiative is financed by the European Union and Poland.

"Our country is a very famous producer of agricultural products and the quality is also famous all over the world. That is why Poland is so proud to export its products also to the United Arab Emirates," said Mr Lysiak.

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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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Investors: Oman Technology Fund from 2017 to 2019, exited through an agreement with a new investor to secure new funding that it under negotiation right now. 

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