Kiswah Al Kaaba raised in Saudi Arabia's Makkah to mark start of Hajj 2022


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Authorities in Saudi Arabia raised the Kiswah Al Kaaba in Makkah on Sunday evening, in preparation for the start of Hajj.

The kiswah, a large, black sheet of silk embroidered with gold patterns, covers the Kaaba (or "cube" in Arabic), the stone structure that forms the centrepiece of the Grand Mosque.

The kiswah was raised by three metres and the bottom section covered with a two-metre-wide white cotton cloth on all four sides, an annual practice to help prevent damage to the Kaaba before the Hajj pilgrimage.

Before the outbreak of the Covid-19, crowds were allowed to touch the kiswah. But since 2020, health and safety protocol has decreed that touch the centrepiece is prohibited.

Hajj will commence on July 7, when the pilgrimage will begin by performing Tawaf — the anti-clockwise circuit of the Kaaba.

Millions of Muslims around the world pray towards the Kaaba every day.

The kiswah is replaced every year during Hajj, after the pilgrims go to Mount Arafat.

At the dawn of the ninth day of Dhu Al Hijjah, the new covering is taken from the factory where it was made to the holy mosque to be hung.

As the new kiswah is attached, the old one is lowered from beneath by loosening the supporting ropes.

When the new kiswah is in place, the individual pieces are sewn together to form a complete encasement.

A new kiswah is prepared every year and involves more than 200 specialist fabric workers. It is created using 47 separate pieces and its outer layer is made from 670kg of silk.

Gold thread adorns the material, spelling out passages from the Quran, as well as phrases such as “no god but Allah", and "glory to God".

This year, after the introduction of mass vaccination, lower numbers Covid-19 cases, and relaxed social distancing and travel laws, authorities are eager to welcome people from abroad to perform Hajj.

Those travelling from overseas are expected to constitute 85 per cent of the total attendance.

Two years ago, at the onset of the Covid-19 pandemic, Muslims from outside the kingdom were barred from performing Hajj as the country shut its borders in accordance with national health and safety measures.

This year, Saudi Arabia announced that people will no longer be required to wear face masks, as authorities dropped a series of measures designed to stop the spread of Covid-19. However, pilgrims will still have to wear masks when visiting the Holy Mosques.

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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.”

Updated: July 06, 2022, 11:24 AM