Mohammed Alardhi is the executive chairman of Investcorp, chairman of Muscat Stock Exchange MSX and chairman of Royal Jet
July 20, 2022
Following a series of world events that have reset and in many ways permanently transformed the outlook of individuals, organisations and governments, it is important to adapt our economic goals and align our strengths in order to generate the most favourable outcomes.
GCC countries have started their journey to economic recovery but the region has ways to go in terms of getting on track towards long-term goals.
Our region has fared well in diversifying its economic interests and is far less reliant on the oil industry now that other sectors have been brought to the forefront. One area where I see the most potential for growth is tourism, which heavily relies on what I have always believed is our greatest asset and strength – our people.
Considering the significant hit global travel took with the fallout of the Covid-19 pandemic, we were expecting a sudden surge in travel this year following the implementation of vaccination programmes and heightened safety measures across the world. The first quarter of 2022 showed a 182 per cent growth in arrivals compared to the same period last year, from 41 million to an estimated 117 million, according to UN World Tourism Organisation (UNWTO).
Numbers will only rise as we go on, since people across the globe are eager to travel for both business and leisure following an extended halt.
We have maintained unity as a region in the face of adversity
There truly is no better time than now for GCC countries to expand on their long-term plans to grow their tourism sectors, and I believe starting local is key.
According to the UNWTO, travellers from the GCC spend 6.5 times more than travellers from other parts of the world. Tourist operators within the region have an excellent opportunity to hone their offerings to suit regional travellers’ tastes and potentially grow their profits.
Perhaps research can help determine what regional travellers look for while visiting countries abroad and packages can be tailored to those preferences, with a variety of targeted deals and offers.
Furthermore, governments can incentivise businesses in the tourism sector, and financial institutions can offer special lending rates that will encourage aspiring entrepreneurs to set up shop or grow existing businesses vertically or laterally to cater to tourists.
There is plenty of room to collaborate regionally and offer experiences that travellers are looking for.
On an international level, there is also an opportunity to market the individual offerings of various nations in the region so global travellers are keen to see just how diverse the Gulf is.
Cross-border collaboration can go a long way in terms of growing regional tourism, and I encourage established and aspiring business owners to connect and brainstorm ideas that will help take the industry to its maximum potential.
Nations within the region can align their objectives and provide travellers with incentives to visit more than one country in a single go. Various organisations that comprise frameworks from airports to public transit and leisure operators that tourists rely on can create synergy and deliver experiences that allow travellers ease in experiencing the diverse offerings our region boasts, borders no bar.
The Arabian Travel Market fair in Dubai in May. EPA
One of the most effective approaches to expanding the tourism sector is to help businesses that do not necessarily target tourists identify how their offerings can be tailored or expanded in order to grow vertically. Existing tourism operators and market leaders can create networks engaging other businesses in order to nurture collaboration within the region, which will result in revenue growth for all.
Citizens in the region must also be committed to the national visions that aim for growth of tourist sectors. The Arab culture is world-famous for its warm hospitality – a crucial aspect that draws travellers to the region again and again – and we must continue to share the best of our heritage with our guests from neighbouring countries and across the world.
The GCC region, and the world at large, is coming out of a prolonged and complex phase and still has a series of challenges to work through.
However, there is hope yet – we have built on our strengths in the past and maintained unity as a region in the face of adversity. We have the support of fast-acting governments that have responded exceptionally well during unprecedented crises that have struck the world, and citizens whose commitment, talent and dedication to community is unparalleled.
I do not doubt that our region will see better days in terms of economic recovery, and I strongly believe that our tourism sectors will play a key role in leading us forward.
Company Fact Box
Company name/date started: Abwaab Technologies / September 2019
Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO
Based: Amman, Jordan
Sector: Education Technology
Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed
Stage: early-stage startup
Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.
There has been a longstanding need from the Indian community to have a religious premises where they can practise their beliefs. Currently there is a very, very small temple in Bur Dubai and the community has outgrown this. So this will be a major temple and open to all denominations and a place should reflect India’s diversity.
It fits so well into the UAE’s own commitment to tolerance and pluralism and coming in the year of tolerance gives it that extra dimension.
What we will see on April 20 is the foundation ceremony and we expect a pretty broad cross section of the Indian community to be present, both from the UAE and abroad. The Hindu group that is building the temple will have their holiest leader attending – and we expect very senior representation from the leadership of the UAE.
When the designs were taken to the leadership, there were two clear options. There was a New Jersey model with a rectangular structure with the temple recessed inside so it was not too visible from the outside and another was the Neasden temple in London with the spires in its classical shape. And they said: look we said we wanted a temple so it should look like a temple. So this should be a classical style temple in all its glory.
It is beautifully located - 30 minutes outside of Abu Dhabi and barely 45 minutes to Dubai so it serves the needs of both communities.
This is going to be the big temple where I expect people to come from across the country at major festivals and occasions.
It is hugely important – it will take a couple of years to complete given the scale. It is going to be remarkable and will contribute something not just to the landscape in terms of visual architecture but also to the ethos. Here will be a real representation of UAE’s pluralism.
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Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
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The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
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.”
When: The one-off Test starts on Friday, May 11 What time: Each day’s play is scheduled to start at 2pm UAE time. TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
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(Caleb Jewell 38, Sean Willis 35, Karl Carver 2-29, Josh Shaw 2-39)
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Friday: Afghanistan v Ireland
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