Tourists buy many of the cameras sold each year in the country as gifts. Tomohiro Ohsumi / Bloomberg News
Tourists buy many of the cameras sold each year in the country as gifts. Tomohiro Ohsumi / Bloomberg News

Profits developing for Fujifilm cameras



Snap-happy shoppers in the UAE bought more than twice as many digital cameras made by Fujifilm last year than in 2010.

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Sales more than doubled in terms of both volume and revenue, which has helped boost Fujifilm's market share in the region, the company said.

"We would like to continue in the same track and look forward to making another big jump in sales [this year], while maintaining our average price level," said Keitaro So, the general manager for Fujifilm Middle East.

But stiff competition from the likes of Canon, Nikon and others that plan to roll out new models this year will make it challenging to keep prices - and profits - up as the cost for many gadgets continues to fall. Revenue earned from the sale of digital cameras throughout the UAE and across all brands is expected to have returned to positive growth last year after two straight years of decline.

Some 792,000 models are forecast to be sold in the Emirates by 2014, according to the market research company Euromonitor International.

Tourists buy many of the cameras sold each year in the country as gifts, and sales tend to spike during major retail events such as Dubai Shopping Festival and Dubai Summer Surprises, according to Euromonitor.

Sales tied to Christmas have only helped manufacturers.

Fujifilm credits its boost in sales last year to setting up its regional headquarters in Dubai for Middle East and African countries a little more than a year ago. It has aimed offerings such as its FinePix models at local consumers on a budget but who want good-quality images, while its new X-Series cameras have been targeted at enthusiasts willing to pay for advanced features.

The company says it commands about 11 per cent market share globally, which makes it the fourth-largest camera maker in the world.

"Regarding Canon and Nikon, we are sure that our strong technology platform can lead us to compete with them and gain a greater market share," Mr So said. "We think that we are on the right path for the future."

Based in Japan, Fujifilm also sells photo-finishing equipment and printers as well as medical systems and products for the life sciences and pharmaceutical sectors.

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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.”

UK's plans to cut net migration

Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.

Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.

But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.

Language requirements will be increased for all immigration routes to ensure a higher level of English.

Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.

The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.

THE DETAILS

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Rating: 2/5

The Settlers

Director: Louis Theroux

Starring: Daniella Weiss, Ari Abramowitz

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SPECS
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Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.