Dear Ali: My friends and I have noticed at dinner that the cheque has a 10 per cent “service charge”. We were wondering if this money goes to the waiters or waitresses or if we should tip on top of it? CG, Abu Dhabi
Dear CG: Tipping is never mandatory here, but if you receive good service it’s nice to leave a little extra to show your appreciation. The 10 per cent service charge does not go to the server, but rather the owner. No matter what you see on the bill, it’s always nice to give some money to your waiting staff, especially since in hospitality usually such positions don’t pay that well. I usually think that if someone adds between 20 to 100 dirhams it’s always fair and good; anything more is generosity from your side. Some restaurants and services venues would allow each assigned waiter to receive the tip that comes from the table assigned for them, while others would allow the waiters to collect all of the tips in one box then divide them.
Dear Ali: I know that oud is a proud part of Arab culture, but the smell of it causes me to have asthma attacks. Many Western countries even have rules against wearing excessive perfume or cologne. I don’t think anything that extreme is necessary, but could they at least put the oud counters inside a store so that the smell doesn’t affect others? VU, Scotland
Dear VU: Growing up here, I never really thought of it. We simply are used to it. But I think it brings up an interesting debate, because we actually know it can be bad for us. When we have elderly relatives or guests over to our house, we don’t burn any incense. The same goes for children. So maybe you’re on to something.
I know some people from the West are allergic to peanuts and that some companies in these cultures prohibit peanuts from their factories. But if someone with a peanut allergy went to Thailand, for example, they would have to be on their toes because peanuts are embedded in Thai culture.
In terms of the shops, I would say that many perfume shops at shopping malls would be encouraged by the mall management to keep the oud burning just near their shop door so that it creates a nice smell in its surroundings, which attracts a lot of the oud fans – and that means good business to them.
If the oud burner was inside the shop, it might be too much, because the whole shop will be in oud smoke, which is awesome to me but might be uncomfortable to its visitors. So that’s why you find many of the shopping malls allow it outside, where it can quickly fade away, since the halls are bigger and it makes the smoke go away faster.
To forbid it might come across as a bit too strong for those who love this oud culture, not to mention that it’s something many, if not most, Emirati people use daily in their homes. Maybe the authorities can work on some restrictions on the amount being used, as well the location of each shop at the malls, where there should be good-quality air extraction to minimise the strong smell.
Ali Al Saloom is a cultural adviser and public speaker from the UAE. Follow @AskAli on Twitter, and visit www.ask-ali.com to ask him a question and to find his guidebooks to the UAE, priced at Dh50.
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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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Mohammed bin Zayed Majlis
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UAE rugby in numbers
5 - Year sponsorship deal between Hesco and Jebel Ali Dragons
700 - Dubai Hurricanes had more than 700 playing members last season between their mini and youth, men's and women's teams
Dh600,000 - Dubai Exiles' budget for pitch and court hire next season, for their rugby, netball and cricket teams
Dh1.8m - Dubai Hurricanes' overall budget for next season
Dh2.8m - Dubai Exiles’ overall budget for next season
Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5