The coronavirus pandemic has caused many countries to close their borders to visitors, concurrently shutting the doors to religious sites within their lands.
Last week, many Christians around the world celebrated Easter at home, with millions tuning in to watch a live stream of Mass with Pope Francis reciting the homily to an empty St Peter’s Basilica in Vatican City.
Across the Muslim world, the closure of mosques and holy sites has resulted in many imams moving their Friday sermons online. In about 10 days’ time, Muslims will begin to mark the month of Ramadan.
The fasting month is traditionally a time for community and togetherness. It’s also a time when visitor numbers to Makkah increase as Muslims travel to Saudi Arabia to perform Umrah.
Makkah welcomes millions of pilgrims every year, with more than three million people visiting for Hajj, and another two million travelling there annually during Ramadan.
This year, visitor numbers will be minimal as access to Islam’s holiest city has been severely restricted. To stem the spread of Covid-19, Saudi Arabia has closed its borders to tourists and visitors, and delayed preparations for the annual Hajj pilgrimage.
Instead of boarding a plane, Muslims keen to visit Makkah this year will have to rely, instead, on technology. And that’s something Ehab Fares, chief executive at digital agency BSocial, is ready to help with.
Back in 2017, Fares’s company launched a virtual reality app called Experience Makkah. It allowed users to step inside the holy city and was the first true virtual reality experience approved by Oculus, the Facebook-owned VR company, in the Middle East.
Nothing would ever replace the real experience, but we thought of sharing a glimpse of what it is like to be in the holy mosque
This Ramadan, the company is gearing up to release version 2.0 of the app, this time on Google Play, and there are plans for an iOS version to follow in Apple’s App Store.
A Ramadan release
The original version of Experience Makkah was downloaded 188,000 times. With travel restrictions in place prohibiting visitors entry to the kingdom, that number is likely to increase when the new version is released on Thursday, April 23, which is expected to be the first day of Ramadan this year.
“Nothing would ever replace the real experience, but we thought of sharing a glimpse of what it is like to be in the holy mosque,” Fares says from his office in Cairo.
Using 3D modelling, Experience Makkah allows users to immerse themselves in the holy city. Wandering the religious site, users can hear the call to prayer, stand next to the sacred Kaaba and interact with other virtual “pilgrims” who are also visiting Makkah.
“To be able to develop the dimensions and textures of the main landmarks as closely as their real-life counterparts required meticulous research and studies, so as to reach the best quality possible while avoiding any technical issues that might occur while rendering,” Fares says.
Virtual reality visits
For Fares, the app offers a way to help bring the biggest religious event in the world within reach of many more Muslims. "It’s considered an educational tool that brings Muslims closer to one of Allah’s most sacred places on the planet virtually, hence resulting in more visits physically,” he says.
This year, with physical visits to Makkah forbidden, this digital window could be exactly what self-isolating Muslims around the world need.
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Read more:
Coronavirus: Pope Francis delivers Easter mass from empty basilica
Coronavirus: Saudi Arabia puts Makkah and Madinah under 24-hour curfew
Coronavirus: Saudi restricts entry to kingdom from UAE, Kuwait and Bahrain to airports only
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Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
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Country-size land deals
US interest in purchasing territory is not as outlandish as it sounds. Here's a look at some big land transactions between nations:
Louisiana Purchase
If Donald Trump is one who aims to broker "a deal of the century", then this was the "deal of the 19th Century". In 1803, the US nearly doubled in size when it bought 2,140,000 square kilometres from France for $15 million.
Florida Purchase Treaty
The US courted Spain for Florida for years. Spain eventually realised its burden in holding on to the territory and in 1819 effectively ceded it to America in a wider border treaty.
Alaska purchase
America's spending spree continued in 1867 when it acquired 1,518,800 km2 of Alaskan land from Russia for $7.2m. Critics panned the government for buying "useless land".
The Philippines
At the end of the Spanish-American War, a provision in the 1898 Treaty of Paris saw Spain surrender the Philippines for a payment of $20 million.
US Virgin Islands
It's not like a US president has never reached a deal with Denmark before. In 1917 the US purchased the Danish West Indies for $25m and renamed them the US Virgin Islands.
Gwadar
The most recent sovereign land purchase was in 1958 when Pakistan bought the southwestern port of Gwadar from Oman for 5.5bn Pakistan rupees.
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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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