Amazon Mena has hired more than 1,500 employees, increasing its workforce by 30 per cent since March, to meet the surge in e-commerce demand due to the coronavirus outbreak, vice president Ronaldo Mouchawar said.
"We see ourselves playing a really essential role here, because we're working with all the authorities to make sure that we're able to deliver as many essentials and important goods to customers across the region that we operate in," Mr Mouchawar told The National.
UAE-based Souq.com, founded by Mr Mouchawar, was acquired by Amazon for $580 million (Dh2.1 billion) in 2017 and rebranded as Amazon.ae a year ago.
Amazon Mena, including Amazon Web Services, now has over 6,500 employees with offices in Bahrain, Egypt, Jordan, Saudi Arabia and the UAE.
Mr Mouchawar said Amazon Mena has been working to balance "adhering to the World Health Organisation and the Ministry of Health and our own safety standards, but as well as coping with the demand and growth that we see from the consumer's perspective".
Globally, Amazon has found itself in a difficult position as lockdowns and social distancing measures to control the spread of the virus have boosted business.
Sales increased to $75.5bn in the first quarter, up 26 per cent from a year earlier. The nature of the job has however put packaging and delivery workers at increased risk.
The online retailer has filled 175,000 additional jobs since mid-March to help meet demand and take the place of workers sheltering at home.
Amazon has said all employees diagnosed with Covid-19 or placed into quarantine will receive up to two weeks' pay, and increased safety and sanitisation procedures.
However, the company came under growing criticism from workers, trade unions and politicians last month as Covid-19 cases were reported among staff at more than 50 of its US warehouses.
In an earnings call on April 30, Amazon chief executive Jeff Bezos said the company plans to spend its entire profit for the second quarter, expected to be "some $4 billion or more", on Covid-related expenses "getting products to customers and keeping employees safe".
Amazon Mena’s health and safety measures for employees include increased frequency and intensity of cleaning at all fulfilment centres and delivery station sites in Egypt, Saudi Arabia and the UAE.
Layouts of the centres have been rearranged so associates can maintain a two-metre distance from co-workers.
"The first changes that we've had to implement were around the safety of our teams: adhering to social distancing, making sure that the sanitisation processes in our warehouses are done well ... to make sure that both our fulfilment centre and delivery network associates are safe," Mr Mouchawar said.
Amazon customers have the option to have deliveries left on the doorstep and there is no longer a requirement for signatures. Although customers can still pay with cash, Amazon has urged customers to use ePay methods for contactless deliveries.
With thousands of employees and delivery partners in the region, Mr Mouchawar said there have been a "few cases" of Covid-19, but added "the quarantine process is managed well".
"We are taking proactive safety measures to protect employees and associates who have been in contact with anyone who has been diagnosed or becomes ill," he said.
As demand has "shifted from transport to delivery", Mr Mouchawar said Amazon has tapped into Careem and Uber drivers who have been laid off due to staffing cuts. "If we're able to use them, we are using them," he said, adding that the company is "hiring continuously".
The surge in e-commerce demand that Amazon Mena has seen since mid-March has been two-fold, Mr Mouchawar said: Covid-related items, such as hand sanitiser, cleaning materials, masks and gloves; and items related to stay-at-home and social distancing practices, such as groceries, laptops and sports equipment.
"As we change our habits to do a lot more things at home, we've seen the categories that are related to these activities definitely grow," he said.
The site also saw an uptick in the use of Prime, its paid membership service that offers free expedited shipping and Amazon Video content.
The number of third-party sellers, which are mainly small businesses, increased as well.
"This was one of the key avenues for them to reach their own customers as many were able to do delivery, but not serve customers in their own premises or stores," Mr Mouchawar said.
Before the pandemic online shopping was already increasing in the region and set to grow at around 40 per cent a year over the next five years, according to a McKinsey November report. It remains to be seen whether the current environment will spur growth further.
"We'll see post-Covid how things pan out, but we definitely see a shift in many customers – not only our existing customers in terms of their frequency, but also many new customers to e-commerce have come on board," Mr Mouchawar said.
Key products and UAE prices
iPhone XS
With a 5.8-inch screen, it will be an advance version of the iPhone X. It will be dual sim and comes with better battery life, a faster processor and better camera. A new gold colour will be available.
Price: Dh4,229
iPhone XS Max
It is expected to be a grander version of the iPhone X with a 6.5-inch screen; an inch bigger than the screen of the iPhone 8 Plus.
Price: Dh4,649
iPhone XR
A low-cost version of the iPhone X with a 6.1-inch screen, it is expected to attract mass attention. According to industry experts, it is likely to have aluminium edges instead of stainless steel.
Price: Dh3,179
Apple Watch Series 4
More comprehensive health device with edge-to-edge displays that are more than 30 per cent bigger than displays on current models.
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.”
MATCH INFO
Barcelona 4 (Suarez 27', Vidal 32', Dembele 35', Messi 78')
Sevilla 0
Red cards: Ronald Araujo, Ousmane Dembele (Barcelona)
Ammar 808:
Maghreb United
Sofyann Ben Youssef
Glitterbeat
Profile of Hala Insurance
Date Started: September 2018
Founders: Walid and Karim Dib
Based: Abu Dhabi
Employees: Nine
Amount raised: $1.2 million
Funders: Oman Technology Fund, AB Accelerator, 500 Startups, private backers
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Top goalscorers in Europe
34 goals - Robert Lewandowski (68 points)
34 - Ciro Immobile (68)
31 - Cristiano Ronaldo (62)
28 - Timo Werner (56)
25 - Lionel Messi (50)
*29 - Erling Haaland (50)
23 - Romelu Lukaku (46)
23 - Jamie Vardy (46)
*NOTE: Haaland's goals for Salzburg count for 1.5 points per goal. Goals for Dortmund count for two points per goal.
