Attendance has been thin at this years' Global Village extravaganza.
Attendance has been thin at this years' Global Village extravaganza.

Higher costs hit Global Village turnout



Participants of Dubailand's Global Village extravaganza have blamed a rise in entrance fees and more expensive visas for a drop in visitor numbers to the annual event. A major tourist attraction for Dubai, Global Village last year attracted 4.5 million visitors over its three-month run. This year's event, which began on Nov 12 and will end on Feb 21, has so far lured 2.2 million people, according to the information centre at Global Village.
"We have one more month to go and I don't think that by the end of the period the number of visitors will be the same as last year," said Osman Esmail Osman, the organiser of the Egyptian pavilion. "It never used to be this way. To get to the Global Village, you had to wait in traffic for at least an hour, but now we can get here from the downtown area in about 20 minutes." Representatives from Global Village were unavailable for comment.
The developer, Tatweer - the master developer of Dubailand - launched Global Village in 1996 to attract families to the emirate and to gauge visitor numbers to the entertainment project. Global Village offers visitors a cultural and entertainment experience that features participants from more than 30 countries. Stallholders use the event to showcase a range of products at country-themed pavilions.
But this year, stallholders fear they will not generate enough revenue during the event to cover the cost of rent. "Sales are down by about 40 per cent compared to last year and we paid Dh180,000 (US$49,000) to rent this 18 square metre stall," said Shueta Bhattia, a saleswoman at Al Amber, a clothing stall in the Indian pavilion. "Right now, I've come to regret that decision because we are going to come out with a huge loss."
Mohsen Ali Abdallh, an Emirati who owns Al Janateen, an oriental perfume store in Al Ain, and who has a stall in the UAE pavilion, agreed. "The event is a disaster this year," he said. "I can hardly believe what is happening to us right now. Last year, I used to make sales of Dh5,000 a day and now I'll be lucky to make Dh500." Sunil Bhatia, the chief executive of the Indian pavilion, blamed the drop in sales and the number of visitors to Global Village on the higher cost of visit visas, introduced by the Dubai Government in August last year. "The 30-day visa charge for tourists is now about US$150, which is really discouraging for Indian and Pakistani families to come here."
Mohammed Naem, who is in charge of the Pakistani pavilion, said an increase in the entry fee to Dh10 per person was the main source of the problem. "This event is known to attract people from the middle and lower classes in Dubai who have large families," he said. "Last year, the entry fee charge was Dh5, now it's Dh10, which cannot be afforded by many people during this difficult time." When Dubailand is completed in 2020, Tatweer estimates that 40,000 visitors a day will flock to the venue, a figure that will contribute to Dubai's ambitious plan to lure 15 million tourists a year to the emirate by 2015, compared with 7.7 million in 2007.
Last month, Khalid al Malik, the chief executive of Tatweer, said Dubailand was being reviewed and a plan to deal with the economic slowdown would be announced soon. abakr@thenational.ae skahn@thenational.ae

Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

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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.”

The Disaster Artist

Director: James Franco

Starring: James Franco, Dave Franco, Seth Rogan

Four stars

Moon Music

Artist: Coldplay

Label: Parlophone/Atlantic

Number of tracks: 10

Rating: 3/5

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
Pathaan
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How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less
COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
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COMPANY PROFILE
Company name: BorrowMe (BorrowMe.com)

Date started: August 2021

Founder: Nour Sabri

Based: Dubai, UAE

Sector: E-commerce / Marketplace

Size: Two employees

Funding stage: Seed investment

Initial investment: $200,000

Investors: Amr Manaa (director, PwC Middle East)