Freak weather brings flooding and hail in Makkah but Saudis remain upbeat


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Residents of Saudi Arabia rejoiced as rain hit several parts of the kingdom on Tuesday.

Social media exploded with videos of rain falling as young Saudis embraced the opportunity to show the country in a different light.

“I want the world to see how beautiful Saudi Arabia is, even during summer,” said Areej Hasan, from Abha in the south-west of the country.

“The beautiful streets of Abha are adorned with purple flowers from jacaranda trees and it is a rare sight to see them drenched in rain. My family and I decided to wear our masks and go out for a stroll to enjoy the beautiful weather,” he said.

  • The kingdom witnessed rain and fog on Tuesday. SPA
    The kingdom witnessed rain and fog on Tuesday. SPA
  • Streets flooded in Makkah as the rain fell. SPA
    Streets flooded in Makkah as the rain fell. SPA
  • Saudis shared videos of the rainfall on social media. SPA
    Saudis shared videos of the rainfall on social media. SPA
  • Saudis shared videos of the rainfall on social media. SPA
    Saudis shared videos of the rainfall on social media. SPA

The rare rain drew children into the streets to play as adults welcomed the cooler temperatures. But the downpour was not all joyful.

On Friday, the authorities warned people about heavy rain and thunderstorms in Makkah, Madinah, Al Baha, Jazan and Najran with possible flooding in the Eastern Province, Riyadh and Qassim as well as light rains across Jawf, Tabuk and the northern borders.

Civil Defence warned people to stay away from places that could flood.

Videos shared from Makkah showed cars submerged as water flowed down a flooded street. Those performing tawaf at the city's Grand Mosque were caught in a hail storm.

Ayesha Rashid, on pilgrimage in Makkah, said she felt blessed to be one of the few able to perform Umrah this year, after coronavirus measures restricted pilgrim numbers.

“The feeling is just unbelievable,” she said.

“We were not expecting this. I suddenly felt drops of rain and then people rejoicing around me as it started pouring in the Grand Mosque. It was as if all our prayers were answered.

"Rain in Islam signifies mercy and we are blessed to have the opportunity to be here in the holy month," Ms Rashid said.

The videos on social media brought joy to those who did not experience the rain themselves.

"I received a video from my cousin in Taif before maghrib and it looked so beautiful! People are driving around just enjoying the rain before they break their fast," said Aamna Tahir, from Jeddah.

“It is such a relief from the hot weather we are facing during long fasting hours,”

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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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