In his home in Gaziantep, Turkey, Syrian refugee Mohammed does not see the point of giving money to his three-year-old daughter Seba this Eid Al Fitr.
The holiday, which marks the end of Ramadan, the Muslim month of fasting, is known for its large feasts, indulgent sugary treats and the traditional Eideyya, a sum of cash usually given to children as a gift by adult relatives and friends.
Showing off new clothes at large gatherings is also a feature of the three-day holiday.
"I bought my daughter Eid clothes but, unfortunately, she won't be able to wear them outside the house," the Mohammed, who is in his 30s, told The National. "We won't be able to go to amusement parks, or toy stores. I will add her Eid money to her savings for later when she can use it."
Mohammed provided only his first name because his job requires him to remain anonymous for security reasons.
Turkey is on a 17-day lockdown; the country’s strictest measures yet to curb the spread of the coronavirus, which has killed more than 43,000 people there and infected five million.
Lockdowns and travel restrictions mean no large family gatherings this Eid, ruining the way people are accustomed to celebrating with family and friends.
A social media poll of 538 people conducted by The National showed a strong divide between people willing to change to a digital medium to exchange gifts. More than half of those polled said they would rather give and receive Eid money via a wire transfer. The rest voted for cash.
"The future is cashless," said Bahraini university student Abdullah Bawazeer, who participated in the poll. "That is inevitable. So yes, I'm looking forward to getting money digitally."
But Saudi communications specialist Muath bin Nujiyfan, 25, said he would rather not give cash at all if the only option was to do it online.
“It does not feel the same as when you hand it to someone, from your hand to theirs, and see their reaction.”
The eldest, he usually gives his five siblings between 100 riyals ($26) and 50 riyalsevery year, depending on their age.
The pleasure associated with receiving what relatively little money every adult places in tiny hands brightens faces and creates unforgettable childhood memories.
The World Health Organisation is urging people not to use cash because it may lead to the spread of the disease, but some people appear to be taking that warning lightly.
Palestinian-Jordanian Bahaa Mahmoud Shihahdeh, 32, said it is considered shameful among members of his family to not hand children their Eid money, especially in communities where wire transfers are looked at with scepticism.
“They are not afraid of the coronavirus,” he said. "They will give cash without issues. Plus, they do not trust online money transfers."
That is exactly what television writer Jordanian Razan Al Zouabi,25, believes.
“It is simply tradition. We just have to be careful.”
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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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How the UAE gratuity payment is calculated now
Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.
The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.
1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):
a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33
b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.
2. For those who have worked more than five years
c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.
Note: The maximum figure cannot exceed two years total salary figure.
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Liverpool 2 (Mane 50', 54')
Red card: Andreas Christensen (Chelsea)
Man of the match: Sadio Mane (Liverpool)
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Tickets start at Dh100 for adults, while children can enter free on the opening day. For more information, visit www.mubadalawtc.com.
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Champions League last 16, first leg
Tottenham v RB Leipzig, Wednesday, midnight (UAE)
Drivers’ championship standings after Singapore:
1. Lewis Hamilton, Mercedes - 263
2. Sebastian Vettel, Ferrari - 235
3. Valtteri Bottas, Mercedes - 212
4. Daniel Ricciardo, Red Bull - 162
5. Kimi Raikkonen, Ferrari - 138
6. Sergio Perez, Force India - 68
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Pakistan (1st innings) 181: Babar 71; Olivier 6-37
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Pakistan (2nd innings) 190: Masood 65, Imam 57; Olivier 5-59
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Countries offering golden visas
UK
Innovator Founder Visa is aimed at those who can demonstrate relevant experience in business and sufficient investment funds to set up and scale up a new business in the UK. It offers permanent residence after three years.
Germany
Investing or establishing a business in Germany offers you a residence permit, which eventually leads to citizenship. The investment must meet an economic need and you have to have lived in Germany for five years to become a citizen.
Italy
The scheme is designed for foreign investors committed to making a significant contribution to the economy. Requires a minimum investment of €250,000 which can rise to €2 million.
Switzerland
Residence Programme offers residence to applicants and their families through economic contributions. The applicant must agree to pay an annual lump sum in tax.
Canada
Start-Up Visa Programme allows foreign entrepreneurs the opportunity to create a business in Canada and apply for permanent residence.
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