Emiratis are being encouraged to cut wedding costs under Abu Dhabi strategy. AFP
Emiratis are being encouraged to cut wedding costs under Abu Dhabi strategy. AFP
Emiratis are being encouraged to cut wedding costs under Abu Dhabi strategy. AFP
Emiratis are being encouraged to cut wedding costs under Abu Dhabi strategy. AFP

Abu Dhabi urges Emirati parents to rethink lavish weddings to reduce marital costs


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Emirati parents have been urged to shed their views on lavish weddings being a “reflection of social status” as Abu Dhabi steps up a long-term drive to cut down on marital costs for future generations.

The emirate's Department of Community Development (DCD) on Thursday launched the Medeem Model for Women's Weddings, which will encourage brides to embrace simpler ceremonies with a focus on traditional Emirati values.

It is part of the wider Madeem strategy, set out in April, to help remove the financial burden of extravagant weddings on young couples.

The initiative was launched after studies showed that prohibitive costs is one of the main reasons why Emiratis either choose not to marry or to do so later in life.

Dr Laila Al Hyas, executive director of the Community Development Sector at the DCD, said young Emiratis understand they do not need to splash out to make the most of their big day – but many of their parents still need to be convinced.

“Today’s youth are very aware that documenting and treasuring life’s pivotal moments is far more important than dazzling guests and exaggerated spending,” said Dr Al Hyas.

“Therefore, we call on parents to change their approach to weddings and move away from the idea that the size and cost of a wedding is a reflection of social status.”

In recent surveys carried out by the DCD, up to 81 per cent of Emiratis considered the wedding ceremony to be the most important part of the wedding journey, while 49 per cent of those about to get married declared that creating shared memories with their partner was their top priority.

Among the top priorities, 55 per cent opted for a party singer, 49 per cent wanted a large number of guests and 44 per cent wanted an expensive wedding dress.

Emirati brides and grooms hold separate ceremonies, which can put a further strain on purse strings.

The women's wedding model will promote good financial planning practices, offer a variety of wedding packages based on budget and number of guests, will accommodate ceremonies for multiple brides and encourage the use of authentic traditional costumes into wedding ceremonies, to save on the cost of expensive dresses.

To take part in the programme, prospective couples must both be Emirati and the husband must be a citizen or resident of Abu Dhabi.

Both spouses must also complete the premarital programme offered by the Medeem Center for Family Flourishing, which is to be launched soon.

“The Medeem Model for Women’s Weddings avoids exaggeration that can lead to great financial burdens and potentially impact a couple's happiness and future stability,” said Dr Mugheer Khamis Al Khaili, chairman of DCD.

“The wedding model is derived from authentic Emirati culture, and it also includes modern elements that allow couples to express their personal tastes without exaggeration. Extravagant weddings lead to excessive spending, and young people should be allowed to enjoy a life filled with affection, love, and blessings.”

“The model includes a set of packages that suit the needs of every couple who is about to get married. They differ in terms of financial cost and the number of guests, and they allow couples to hold their wedding at home, in wedding halls that offer the Medeem benefits package, or in government halls. Couples can also choose a predetermined date that suits their schedule on the Medeem digital platform.”

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The flights
Etihad (etihad.com) flies from Abu Dhabi to Luang Prabang via Bangkok, with a return flight from Chiang Rai via Bangkok for about Dh3,000, including taxes. Emirates and Thai Airways cover the same route, also via Bangkok in both directions, from about Dh2,700.
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The Gypsy by Mekong Kingdoms has two cruising options: a three-night, four-day trip upstream cruise or a two-night, three-day downstream journey, from US$5,940 (Dh21,814), including meals, selected drinks, excursions and transfers.
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Accommodation is available in Luang Prabang at the Avani, from $290 (Dh1,065) per night, and at Anantara Golden Triangle Elephant Camp and Resort from $1,080 (Dh3,967) per night, including meals, an activity and transfers.

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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.”

Updated: July 04, 2024, 11:59 AM