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 profile
Company name: Nestrom
Started: 2017
Co-founders: Yousef Wadi, Kanaan Manasrah and Shadi Shalabi
Based: Jordan
Sector: Technology
Initial investment: Close to $100,000
Investors: Propeller, 500 Startups, Wamda Capital, Agrimatico, Techstars and some angel investors
- Dh300 million set aside to train 18,000 jobseekers in new skills
- Managerial jobs in government restricted to Emiratis
- Emiratis to get priority for 160 types of job in private sector
- Portion of VAT revenues will fund more graduate programmes
- 8,000 Emirati graduates to do 6-12 month replacements in public or private sector on a Dh10,000 monthly wage - 40 per cent of which will be paid by government
RESULTS
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Biog
Mr Kandhari is legally authorised to conduct marriages in the gurdwara
He has officiated weddings of Sikhs and people of different faiths from Malaysia, Sri Lanka, Russia, the US and Canada
Father of two sons, grandfather of six
Plays golf once a week
Enjoys trying new holiday destinations with his wife and family
Walks for an hour every morning
Completed a Bachelor of Commerce degree in Loyola College, Chennai, India
2019 is a milestone because he completes 50 years in business
Cricket World Cup League 2
UAE squad
Rahul Chopra (captain), Aayan Afzal Khan, Ali Naseer, Aryansh Sharma, Basil Hameed, Dhruv Parashar, Junaid Siddique, Muhammad Farooq, Muhammad Jawadullah, Muhammad Waseem, Omid Rahman, Rahul Bhatia, Tanish Suri, Vishnu Sukumaran, Vriitya Aravind
Fixtures
Friday, November 1 – Oman v UAE Sunday, November 3 – UAE v Netherlands Thursday, November 7 – UAE v Oman Saturday, November 9 – Netherlands v UAE
“Join in with a group like Cycle Safe Dubai or TrainYAS, where you’ll meet like-minded people and always have support on hand.”
Stewart Howison, co-founder of Cycle Safe Dubai and owner of Revolution Cycles
“When you sweat a lot, you lose a lot of salt and other electrolytes from your body. If your electrolytes drop enough, you will be at risk of cramping. To prevent salt deficiency, simply add an electrolyte mix to your water.”
Cornelia Gloor, head of RAK Hospital’s Rehabilitation and Physiotherapy Centre
“Don’t make the mistake of thinking you can ride as fast or as far during the summer as you do in cooler weather. The heat will make you expend more energy to maintain a speed that might normally be comfortable, so pace yourself when riding during the hotter parts of the day.”
Chandrashekar Nandi, physiotherapist at Burjeel Hospital in Dubai
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.”
Tips for job-seekers
Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East
MATCH INFO
Manchester City 1 Chelsea 0 De Bruyne (70')
Man of the Match: Kevin de Bruyne (Manchester City)
