Dubai malls still awash with tourists, despite Ramadan restrictions



DUBAI // Scorching summer temperatures and restrictions on eating and drinking during Ramadan have not put off tourists from visiting Dubai’s landmarks or shopping in the city’s malls.

Although coffee shops and restaurants were closed because of the restrictions on eating and drinking during the day, it did not stop thousands of people from visiting Dubai Mall. The atmosphere was a little subdued a couple of hours before iftar but it was almost business as usual for many of the stores.

Outside, near the Dubai Fountain dozens of people, mainly tourists, posed for photographs in front of the Burj Khalifa.

“We arrived in Ras Al Khaimah a few days ago and decided to spend a day in Dubai so have been going to different areas,” said Sebastian Schubert, 26, from Passau, in Germany.

He is on a 15-day stay in the UAE with a travelling companion.

“We did some research before we came so we knew it would be Ramadan and it would be very hot,” he said. “I think it’s been fantastic so far and we prefer that it’s not as busy.”

Max and Alina Frank, from Kassel, Germany, are in Dubai for seven days. “It’s been good so far and we are really amazed by the skyscrapers,” said Mr Frank, 20.

“We had brought some food in our luggage so had some before we came out of the hotel.

“The restaurants are closed but that is not a problem for us.

“We came here to experience a different culture and way of life and we respect the customs here. It’s no different if you were to go to Germany over Christmas, everything is closed at that time of year as well.”

Sisters Sarah and Tamryn Calitz, from Durban, South Africa, were on a short stopover in Dubai before they continue on to a family holiday in Greece, so they saw it as an opportunity do some shopping.

“It’s really hot but indoors there is air conditioning so that is not much of an issue,” said Sarah, 19.

“Not being able to eat during the day doesn’t really bother us that much as we spent about eight hours shopping,” Tamryn said.

Throughout Ramadan, malls in Dubai have extended their opening hours to about 1am, with restaurants staying open until 2am. They also run a range of events and activities to encourage more visitors.

Dubai Mall gives visitors iftar packs containing water, dates and a Ramadan calendar at service desks.

The Waterfall Atrium has a sculpture from Emirati artist Mattar Bin Lahej’s called “Encyclopaedia”, made from multicoloured stainless steel circles, each embodying information on the holy month.

Baiju Kuriesh, chief executive of the Dubai Shopping Malls Group (DSMG), said footfall figures in the first two weeks of Ramadan were similar to those last year.

“The first two weeks tend to see people focus on their family and prayers but, as we get closer to Eid, we see an increase in terms of shopping,” he said.

The DSMG pre-Ramadan Shop in Dubai campaign took place in 27 malls across Dubai from June 2 to June 28 and led to a 10 to 12 per cent increase in footfall compared with the same period last year.

Fuad Mansoor Sharaf, senior director for property management, shopping malls, for Majid Al Futtaim Properties, said restaurants and coffee shops experienced increased demand at iftar and suhoor, with footfall and sales expected to pick up in the lead-up to Eid Al Fitr, at the end of Ramadan.

“As such, we expect footfall and sales to be positive during the holy month this year,” he said.

Mirdif City Centre is providing live performances of traditional folk dancing each night and visitors to Deira City Centre will be welcomed at the metro station by a falconer between 8pm and midnight.

Majid Al Futtaim also launched its annual “Make a Difference this Ramadan” campaign in malls to collect everyday essentials to be donated to underprivileged communities in tandem with the Red Crescent.

nhanif@thenational.ae

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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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