Shelina Janmohamed is an author and a culture columnist for The National
March 05, 2024
We have reached that time of year when practising Muslims feel closest to their religion. With Ramadan starting in a few days, preparations for the month are under way. In countless homes around the world, whoever is in charge of cooking has probably been stocking up on food and recipes and even panicking about how everything will get done.
Muslim charities are gearing up for their busiest time of year. And businesses in the Muslim world are combining advertisements and product pushes for their biggest sales period of the year.
But this year’s Ramadan already feels different as it is shaping up to amplify a heightened sense of Muslim identity.
In 2020, Ramadan was unlike any other. The Covid-19 pandemic was spreading rapidly and before the fasting period began, lockdowns were already in place in many countries, affecting countless Muslims. It was one of the first big community-centric times that people faced in lockdown, and it was left to Muslims to navigate how to manage.
Ramadan is about praying together, eating together, doing good work and giving charity together. In that sense, it is a very social four weeks. They say that necessity is the mother of invention, and when being under lockdown prevented most of these traditional Ramadan acts from taking place, people found new ways of reaching the same goals. People prayed across fences, socially distanced, or did so on Zoom. Iftars became virtual but opened up to those who might otherwise have been isolated or excluded. Families, especially mothers, found the opportunity to return to the "true" values of Ramadan in their own homes.
While the pandemic may now seem distant, there have been lasting effects of lockdowns around inclusivity, mental health and perhaps, even around creating a simpler Ramadan – rather than succumbing to the pressure to live up to social media standards.
In Muslim homes, whoever is in charge of cooking, has probably been stocking up on food and recipes for Ramadan. Reuters
This year, we are likely to experience another Ramadan that may well have long-lasting effects. The coming month is largely about togetherness, connectivity and a sense of Ummah – the global Muslim nation or family. This year, these feelings have already been awoken among Muslims around the world as a result of the deaths in Gaza. Muslim eyes are glued to events and hearts are torn. It's not just Muslims either. There is widespread anguish and a feeling of unity for those suffering. During Ramadan, these feelings are likely to intensify. After all, the prescription of Ramadan is to understand the pain of others. I have no doubt that many Muslims will talk of the hunger of their fasting paling against the hunger of those living through war.
Some people around the world, including Muslims, are also engaging in consumer boycotts, rejecting products or brands that they believe are fuelling the conflict. Ramadan doesn’t just intensify the feelings of Muslim identity and practice, it also spurs observers to act in ways they feel are important, to put aside day-to-day chores and focus on what they can do to make things better for those less fortunate. It is likely that this impulse will be strengthened during Ramadan as a result of the mood that accompanies a month of self transformation and hard work.
There is also a social element to this. People spend more time with each other and increase the opportunity to scrutinise and challenge each other, leading to a likely viral effect on boycotts of products such as Starbucks, among other companies, that are seen as supporting Israel. And this might feel particularly painful for businesses used to enjoying a bumper Ramadan. Social events during the month may even take on an activist bent, with people gathered and sharing knowledge of events around the world and fundraising for Gaza more so than in previous years, with a focus on the plight of the recipients of aid.
There is talk of a hostage exchange during Ramadan, among other mitigations to the situation. Whatever the developments, people will be finely attuned to events. The month will be transformative in the sense of reigniting a global sense of unity and togetherness over a shared purpose.
As it did in 2020, the meaning of Ramadan will once again come to the fore. Muslims who observe – and those who are not Muslim but enjoy being engaged in Ramadan or align themselves with Muslims – will express what Ramadan means to them. Ramadan is not just about Muslims fasting. This year it will be prompting Muslims as a collective to think of what is right rather than thinking simply about what to cook or eat. That collective transformation is the power of Ramadan.
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.”
Innotech Profile
Date started: 2013
Founder/CEO: Othman Al Mandhari
Based: Muscat, Oman
Sector: Additive manufacturing, 3D printing technologies
Size: 15 full-time employees
Stage: Seed stage and seeking Series A round of financing
Investors: Oman Technology Fund from 2017 to 2019, exited through an agreement with a new investor to secure new funding that it under negotiation right now.