Inside a factory at an industrial park, on the outskirts of Gaziantep in south-eastern Turkey, beautiful things are being made.
To the clack-clack of old wooden looms, striped fabrics in nutty browns and twinkling cobalt blue are coming to life. In one corner, their brows furrowed in concentration, workers funnel deep scarlet threads around a machine called a levent, preparing them for the loom.
The plant produces fabrics for Kutnia, a Turkish brand founded in the historical city of Gaziantep in 2017. The company is aiming to revive the production of “kutnu”, a fabric whose manufacture dates back to the 16th century, and which was traded across the former Ottoman Empire.
The word “kutnu” comes from the Arabic for “cotton” – “qutn” – a nod to the linguistic threads that weave fabrics and societies across this part of the world.
Facing competition from cheap imports and limitations imposed by the material’s traditional specifications, its production has long been in decline in Gaziantep, despite its central cultural importance.
According to Ottoman Touch, a London-based luxury brand selling items from and inspired by the former empire, kutnu was called “palace cloth” as it was used to make the sultans’ kaftans. There are more than 60 different types, depending on the number of warp yarns and motifs: Mecidiye, Hindiye, Zencirli, Sedefli, Cutari, Mercan, Sedyeli, Osmaniye, Sultan, and Mehtap are just a few.
Kutnia aims to revive kutnu fabric, which is seen in homes and shops as far away as Damascus and Baghdad – a sofa lining here, a striped waistcoat there. The firm, founded by a woman named Julide Konukoglu, started as a project with the local municipality in Gaziantep, before continuing as a private business.
“What she saw during this project was that so many designers tried to use kutnu in their designs, but they couldn't use it, because there were some problems in how it was done by hand – the width of the fabric was too narrow,” Zeynep Alti, Kutnia’s brand communication department director, told The National. “While keeping the DNA of how this fabric is made, we make the fabric wider, so that it is much more possible to make it into garments.”
Worker Hadil Bayel, 60, has been at Kutnia for seven years, and describes how the clacking sound of the wooden looms "is like a song to us," as it rings out against the walls. This production "is continuing our history,” he said.
Forty of the firm’s 100 employees are based in the city, which has been a manufacturing hub for centuries, thanks to its proximity to major trading routes – with the city of Aleppo, 120km away across the border in Syria, and Mediterranean Sea ports in neighbouring Hatay province.
Kutnia is now working with older “masters” who can teach production techniques to a younger generation of workers. They work on 12 handlooms and can produce 2,000 metres of fabric per month.
“Now at the factory we employ one of them who still teaches each step to weave to young generation masters,” Ms Alti said. Each weaver has a coloured tab on his loom to mark it as his own discretion.
Along with a greater width, Kutnia’s design and production teams have also modernised the fabric and designs for the 21st century. The material is now made using a combination of 40 per cent cotton and 60 per cent natural rayon in the warps, a more durable replacement for the traditionally used silk. New product lines incorporate autumn-winter and spring-summer ready-to-wear collections, covetable accessories such as delicate slippers, and upholstery fabrics.
Inspiration for colour palettes and the signature bold stripes is now taken from Gaziantep’s spice markets, overflowing with rich reds, pinks and oranges, and the white and black stone patterns, known as ablaq, that adorn the city’s khans – former market places – mosques and homes. The brand has two shops in Gaziantep, as well as a boutique in the upmarket shopping district of Nisantasi in Istanbul. In the Middle East, Kutnia products are available at Sauce and That Concept Store in Dubai, and Nass Boutique in Kuwait, and in Europe, at shops in Milan, Paris and London.
Customers, who hail from France and Lebanon among other places, can also apply to have custom-produced fabrics and patterns made.
“In the days of the Ottoman Empire, kutnu was sent as a gift to Europeans,” Ms Alti said. “You can even see this fabric in some of Matisse's paintings.” Current customers are mostly “curious travellers”, she added – people who appreciate the time and effort that goes into the production process, and who can afford the costs that entails: a blouse retails at 370 euros, a dress at 475 euros.
The items are high-quality and long-lasting, though. In a warehouse to one side of the factory, past collections line the walls: cornflower blue and white kaftans, bold ikat print jackets, and classic striped pyjamas in sweet shop pink palettes.
“When people are buying, they are really interested in how it is made – that it is still handmade, and it's very laborious. So people who appreciate these things, they buy the most, I would say,” she said.
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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 to report a beggar
Abu Dhabi – Call 999 or 8002626 (Aman Service)
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In numbers: PKK’s money network in Europe
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Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013