• The sun sets over a mosque during Ramadan at Al Bahya in Abu Dhabi on May 31, 2018. Chris Whiteoak / The National
    The sun sets over a mosque during Ramadan at Al Bahya in Abu Dhabi on May 31, 2018. Chris Whiteoak / The National
  • Muslims arrive shortly before sunset to break their fast in Dubai on May 23, 2018. EPA
    Muslims arrive shortly before sunset to break their fast in Dubai on May 23, 2018. EPA
  • Men share iftar at Lootah Mosque in Deira, Dubai, on May 20, 2018. Leslie Pableo for The National
    Men share iftar at Lootah Mosque in Deira, Dubai, on May 20, 2018. Leslie Pableo for The National
  • Muslims have iftar at the Kuwaiti mosque in Deira, Dubai, on May 20, 2018. Leslie Pableo for The National
    Muslims have iftar at the Kuwaiti mosque in Deira, Dubai, on May 20, 2018. Leslie Pableo for The National
  • Men break their fast at Lootah Mosque in Deira, Dubai, on May 20, 2018. Leslie Pableo for The National
    Men break their fast at Lootah Mosque in Deira, Dubai, on May 20, 2018. Leslie Pableo for The National
  • Staff pour porridge in small containers ready to serve for iftar at Wonder Chef Catering in Al Quoz, Dubai, on May 2018. Leslie Pableo for The National
    Staff pour porridge in small containers ready to serve for iftar at Wonder Chef Catering in Al Quoz, Dubai, on May 2018. Leslie Pableo for The National
  • Muslims pray before iftar at the Kuwaiti mosque in Deira, Dubai, on May 20, 2018. Leslie Pableo for The National
    Muslims pray before iftar at the Kuwaiti mosque in Deira, Dubai, on May 20, 2018. Leslie Pableo for The National
  • Men prepare an area for communal iftar at Lootah Masjid Mosque, Deira, Dubai, 2018. Leslie Pableo for The National
    Men prepare an area for communal iftar at Lootah Masjid Mosque, Deira, Dubai, 2018. Leslie Pableo for The National
  • People queue for takeaway iftar meals in Deira, Dubai, in 2018. Leslie Pableo for The National
    People queue for takeaway iftar meals in Deira, Dubai, in 2018. Leslie Pableo for The National
  • Men prepare for iftar at Lootah Mosque in Deira, Dubai, in 2018. Leslie Pableo for The National
    Men prepare for iftar at Lootah Mosque in Deira, Dubai, in 2018. Leslie Pableo for The National
  • Staff prepare iftar meals in Al Quoz, Dubai, 2018. Leslie Pableo for The National
    Staff prepare iftar meals in Al Quoz, Dubai, 2018. Leslie Pableo for The National
  • A cat follows a man in front of the Bani Hashim Mosque, Abu Dhabi, in 2018. AFP
    A cat follows a man in front of the Bani Hashim Mosque, Abu Dhabi, in 2018. AFP
  • Jordanian Nasser Nihad Ibrahim competes in the Dubai International Holy Quran Award in 2018. The annual event consists of readings from the Quran. AFP
    Jordanian Nasser Nihad Ibrahim competes in the Dubai International Holy Quran Award in 2018. The annual event consists of readings from the Quran. AFP
  • Women perform evening prayers at Al Qasba Mosque, Sharjah, in 2018. EPA
    Women perform evening prayers at Al Qasba Mosque, Sharjah, in 2018. EPA
  • People walk under illuminated decorations at Qanat Al Qasba, Sharjah, in 2018. EPA
    People walk under illuminated decorations at Qanat Al Qasba, Sharjah, in 2018. EPA
  • Muslims break their fast in Dubai in 2018. EPA
    Muslims break their fast in Dubai in 2018. EPA
  • The sun sets behind a mosque during Ramadan in Abu Dhabi in 2018. Chris Whiteoak / The National
    The sun sets behind a mosque during Ramadan in Abu Dhabi in 2018. Chris Whiteoak / The National

When does Ramadan 2022 start in the UAE?


Gillian Duncan
  • English
  • Arabic

Latest: Ramadan 2022 starts in UAE on Saturday

This year will mark the third Ramadan since the coronavirus pandemic began back in 2020.

UAE authorities announced that Ramadan working hours for federal government employees will be from 9am until 2.30pm from Monday to Thursday and from 9am until 12pm on Friday across holy month, while private sector employees will be allowed to reduce their working day by two hours.

But when will Ramadan 2022 be celebrated in the UAE?

The National explains.

When is Ramadan 2022?

UAE authorities have confirmed Ramadan will begin on Saturday.

The country's moon-sighting committee met at the Abu Dhabi Judicial Department and confirmed the presence of the crescent moon, state news agency Wam reported on Friday.

The Emirates Astronomical Society earlier announced the same date for the beginning of the holy month.

It also said that Eid Al Fitr and the first of Shawwal — the 10th month in the Islamic calendar — should fall on Monday, May 2, meaning Ramadan would last 30 days.

Each year, the exact date for the beginning of Ramadan is only known once the new crescent is seen, as the Islamic calendar is based on the lunar cycle. The new moon heralds the start of the ninth month of the calendar, called Ramadan.

The task of spotting it falls to the moon sighting committee — a group of astronomers, court officials and advisers from the country's Islamic authority — which typically convenes after maghrib, or sunset, prayers on the 29th day of Sha’ban, the eighth month, to look for the new crescent moon. If they see it, Ramadan begins the following day. If not, it will start the day after.

The process is repeated around the time of the next new moon. When that is spotted Ramadan ends, and Shawwal, the 10th month, begins.

Ramadan lasts 29 or 30 days, depending on when the sighting is made.

The first week of Ramadan this year coincides with the second week of the spring school holidays, between the second and third terms. Once schools reopen, they will operate reduced hours — probably of no more than six hours a day during the remainder of the month.

Ramadan will occur during the tourist season again. Restaurants will likely be able to serve diners without curtains or dividers. Many bars continue to serve liquor, as long as patrons are respectful and entertainment is kept to a minimum.

What is Ramadan?

Ramadan is the holiest month in the Islamic calendar, which is believed to be when the Quran was revealed to the Prophet Mohammed.

Muslims fast from sunrise to sunset, abstaining from both food and drink during the period.

Ramadan is a very religious time, when Muslims strengthen their faith through prayer and increased recitation of the Quran.

The last 10 days of the holy month are the most special, coinciding with Laylat Al Qadr, the night the Quran was revealed to the Prophet Mohammed.

It is not known when it occurred, but the event is celebrated on the 27th night. The rewards for acts of worship carried out on this night are said to be more than the rewards of 1,000 months of worship.

  • Through the crenellations of the Sheikh Zayed Grand Mosque in Abu Dhabi. AFP
    Through the crenellations of the Sheikh Zayed Grand Mosque in Abu Dhabi. AFP
  • Egyptian Muslims take part in evening prayers on Laylat al-Qadr or Night of Decree, at Amr Ibn El-Aas mosque. Reuters
    Egyptian Muslims take part in evening prayers on Laylat al-Qadr or Night of Decree, at Amr Ibn El-Aas mosque. Reuters
  • Egyptian Muslims take part in evening prayers on Laylat al-Qadr or Night of Decree, at Amr Ibn El-Aas mosque. Reuters
    Egyptian Muslims take part in evening prayers on Laylat al-Qadr or Night of Decree, at Amr Ibn El-Aas mosque. Reuters
  • An Egyptian Muslim takes part in evening prayers on Laylat al-Qadr or Night of Decree, at Amr Ibn El-Aas mosque. Reuters
    An Egyptian Muslim takes part in evening prayers on Laylat al-Qadr or Night of Decree, at Amr Ibn El-Aas mosque. Reuters
  • Egyptian Muslims take part in evening prayers on Laylat al-Qadr or Night of Decree, at Amr Ibn El-Aas mosque. Reuters
    Egyptian Muslims take part in evening prayers on Laylat al-Qadr or Night of Decree, at Amr Ibn El-Aas mosque. Reuters
  • Kareem Mahmoud, a 32-year-old Egyptian, prepares a dish of fava beans for customers from a novelty food cart in the capital Cairo's southern suburb of Maadi. AFP
    Kareem Mahmoud, a 32-year-old Egyptian, prepares a dish of fava beans for customers from a novelty food cart in the capital Cairo's southern suburb of Maadi. AFP
  • Kareem Mahmoud, a 32-year-old Egyptian, prepares a dish of fava beans for customers from a novelty food cart in the capital Cairo's southern suburb of Maadi. AFP
    Kareem Mahmoud, a 32-year-old Egyptian, prepares a dish of fava beans for customers from a novelty food cart in the capital Cairo's southern suburb of Maadi. AFP
  • Palestinian Muslim worshippers arrive to pray at a mosque on the occasion of Laylat al-Qadr, also known as the Night of Power, in Gaza City. AFP
    Palestinian Muslim worshippers arrive to pray at a mosque on the occasion of Laylat al-Qadr, also known as the Night of Power, in Gaza City. AFP
  • Muslim worshippers pray on Laylat al-Qadr at Majidul Kabeer Grand Mosque in Kuwait City, Kuwait. EPA
    Muslim worshippers pray on Laylat al-Qadr at Majidul Kabeer Grand Mosque in Kuwait City, Kuwait. EPA
  • Muslim worshippers pray on Laylat al-Qadr at Majidul Kabeer Grand Mosque in Kuwait City, Kuwait. EPA
    Muslim worshippers pray on Laylat al-Qadr at Majidul Kabeer Grand Mosque in Kuwait City, Kuwait. EPA
  • A Muslim worshipper reads the Holy Quran on Laylat al-Qadr at Majidul Kabeer Grand Mosque in Kuwait City, Kuwait. EPA
    A Muslim worshipper reads the Holy Quran on Laylat al-Qadr at Majidul Kabeer Grand Mosque in Kuwait City, Kuwait. EPA
  • Muslim worshippers pray on Laylat al-Qadr at Majidul Kabeer Grand Mosque in Kuwait City, Kuwait. EPA
    Muslim worshippers pray on Laylat al-Qadr at Majidul Kabeer Grand Mosque in Kuwait City, Kuwait. EPA
  • Jewish settlers guarded by Israeli security forces walk past a Palestinian pickled vegetable and olive vendor's stall as they tour the Palestinian side of the old city market in the occupied West Bank city of Hebron. AFP
    Jewish settlers guarded by Israeli security forces walk past a Palestinian pickled vegetable and olive vendor's stall as they tour the Palestinian side of the old city market in the occupied West Bank city of Hebron. AFP
  • An imam gives a sermon before Muslim worshippers attending at a mosque in Maaret al-Noman in Syria's northwestern Idlib province lateon the occasion of Lailat al-Qadr. AFP
    An imam gives a sermon before Muslim worshippers attending at a mosque in Maaret al-Noman in Syria's northwestern Idlib province lateon the occasion of Lailat al-Qadr. AFP
  • Worshippers take part in evening prayers on Laylat al-Qadr at Grand Camlica mosque in Istanbul, Turkey. Reuters
    Worshippers take part in evening prayers on Laylat al-Qadr at Grand Camlica mosque in Istanbul, Turkey. Reuters
  • Bosnian Muslim women pray at the Gazi Husrev Bay's Mosque in Sarajevo, Bosnia and Herzegovina. EPA
    Bosnian Muslim women pray at the Gazi Husrev Bay's Mosque in Sarajevo, Bosnia and Herzegovina. EPA
  • Bosnian Muslim women pray at the Gazi Husrev Bay's Mosque in Sarajevo, Bosnia and Herzegovina. EPA
    Bosnian Muslim women pray at the Gazi Husrev Bay's Mosque in Sarajevo, Bosnia and Herzegovina. EPA
  • An imam leads Muslim worshippers in prayer at a mosque in Maaret al-Noman in Syria's northwestern Idlib province on the occasion of Lailat al-Qadr. AFP
    An imam leads Muslim worshippers in prayer at a mosque in Maaret al-Noman in Syria's northwestern Idlib province on the occasion of Lailat al-Qadr. AFP
  • Muslim worshippers pray at a mosque in Maaret al-Noman in Syria's northwestern Idlib province early on the occasion of Lailat al-Qadr. AFP
    Muslim worshippers pray at a mosque in Maaret al-Noman in Syria's northwestern Idlib province early on the occasion of Lailat al-Qadr. AFP

What obligations do Muslims have during the holy month?

Fasting is mandatory for all Muslims in good health.

Muslims usually perform more charitable acts during the month, and spend more time with loved ones and strengthen their faith. Some may quit habits like drinking coffee and smoking.

Some Muslims will also perform Umrah, an optional pilgrimage to Makkah, the birthplace of the Prophet Mohammed in Saudi Arabia, which can be done at any time of the year, unlike Hajj that has specific dates.

Authorities in Saudi Arabia have confirmed that foreign pilgrims will be allowed to perform Umrah this year. But they must obtain a vaccination certificate issued by the authorities in their country. And that must be attached along with their application.

A 10-day waiting period between two separate Umrah visits has been imposed as part of restrictions to stem the spread of the omicron variant.

Will mosques be open?

Almost certainly. They were closed during Ramadan in 2020, but that was because it fell in the first few months of the pandemic and immunity to the virus was low. Now almost all adults are vaccinated and boosted.

Mosques were open during Ramadan in 2021, but had to be disinfected before and after prayers.

Taraweeh prayers, which are held after isha and count among key optional prayers (sunnah) for Muslims during Ramadan, were conducted under protocols, including capacity limits and mandatory masks.

Worshippers had to also take their own prayer mats and copies of the Quran, and follow social-distancing protocols.

What about iftars?

Families were encouraged not to celebrate in large groups last year due to the risk posed by the spread of Covid.

And there were no tents placed outside mosques to distribute free iftar meals to people in need across all seven emirates. Meals were distributed to workers' accommodation instead.

Authorities will announce any protocols closer to the time, based on the Covid situation in the country.

RESULTS

Mumbai Indians 181-4 (20 ovs)
Kolkata Knight Riders 168-6 (20ovs)

Mumbai won by 13 runs

Rajasthan Royals 152-9 (20 ovs)
Kings XI Punjab 155-4 (18.4 ovs)

Kings XI Punjab won by 6 wickets

The British in India: Three Centuries of Ambition and Experience

by David Gilmour

Allen Lane

JOKE'S%20ON%20YOU
%3Cp%3EGoogle%20wasn't%20new%20to%20busting%20out%20April%20Fool's%20jokes%3A%20before%20the%20Gmail%20%22prank%22%2C%20it%20tricked%20users%20with%20%3Ca%20href%3D%22https%3A%2F%2Farchive.google%2Fmentalplex%2F%22%20target%3D%22_blank%22%3Emind-reading%20MentalPlex%20responses%3C%2Fa%3E%20and%20said%3Ca%20href%3D%22https%3A%2F%2Farchive.google%2Fpigeonrank%2F%22%20target%3D%22_blank%22%3E%20well-fed%20pigeons%20were%20running%20its%20search%20engine%20operations%3C%2Fa%3E%20.%3C%2Fp%3E%0A%3Cp%3EIn%20subsequent%20years%2C%20they%20announced%20home%20internet%20services%20through%20your%20toilet%20with%20its%20%22%3Ca%20href%3D%22https%3A%2F%2Farchive.google%2Ftisp%2Finstall.html%22%20target%3D%22_blank%22%3Epatented%20GFlush%20system%3C%2Fa%3E%22%2C%20made%20us%20believe%20the%20Moon's%20surface%20was%20made%20of%20cheese%20and%20unveiled%20a%20dating%20service%20in%20which%20they%20called%20founders%20Sergey%20Brin%20and%20Larry%20Page%20%22%3Ca%20href%3D%22https%3A%2F%2Farchive.google%2Fromance%2Fpress.html%22%20target%3D%22_blank%22%3EStanford%20PhD%20wannabes%3C%2Fa%3E%20%22.%3C%2Fp%3E%0A%3Cp%3EBut%20Gmail%20was%20all%20too%20real%2C%20purportedly%20inspired%20by%20one%20%E2%80%93%20a%20single%20%E2%80%93%20Google%20user%20complaining%20about%20the%20%22poor%20quality%20of%20existing%20email%20services%22%20and%20born%20%22%3Ca%20href%3D%22https%3A%2F%2Fgooglepress.blogspot.com%2F2004%2F04%2Fgoogle-gets-message-launches-gmail.html%22%20target%3D%22_blank%22%3Emillions%20of%20M%26amp%3BMs%20later%3C%2Fa%3E%22.%3C%2Fp%3E%0A
The specs: 2019 Mini Cooper

Price, base: Dh141,740 (three-door) / Dh165,900 (five-door)
Engine: 1.5-litre four-cylinder (Cooper) / 2.0-litre four-cylinder (Cooper S)
Power: 136hp @ 4,500rpm (Cooper) / 192hp @ 5,000rpm (Cooper S)
Torque: 220Nm @ 1,480rpm (Cooper) / 280Nm @ 1,350rpm (Cooper S)
Transmission: Seven-speed automatic
Fuel consumption, combined: 4.8L to 5.4L / 100km

India squad for fourth and fifth Tests

Kohli (c), Dhawan, Rahul, Shaw, Pujara, Rahane (vc), Karun, Karthik (wk), Pant (wk), Ashwin, Jadeja, Pandya, Ishant, Shami, Umesh, Bumrah, Thakur, Vihari

The Bio

Name: Lynn Davison

Profession: History teacher at Al Yasmina Academy, Abu Dhabi

Children: She has one son, Casey, 28

Hometown: Pontefract, West Yorkshire in the UK

Favourite book: The Alchemist by Paulo Coelho

Favourite Author: CJ Sansom

Favourite holiday destination: Bali

Favourite food: A Sunday roast

Most sought after workplace benefits in the UAE
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The specs

Engine: 6.2-litre V8

Transmission: ten-speed

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Three ways to limit your social media use

Clinical psychologist, Dr Saliha Afridi at The Lighthouse Arabia suggests three easy things you can do every day to cut back on the time you spend online.

1. Put the social media app in a folder on the second or third screen of your phone so it has to remain a conscious decision to open, rather than something your fingers gravitate towards without consideration.

2. Schedule a time to use social media instead of consistently throughout the day. I recommend setting aside certain times of the day or week when you upload pictures or share information. 

3. Take a mental snapshot rather than a photo on your phone. Instead of sharing it with your social world, try to absorb the moment, connect with your feeling, experience the moment with all five of your senses. You will have a memory of that moment more vividly and for far longer than if you take a picture of it.

COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20OneOrder%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20March%202022%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Tamer%20Amer%20and%20Karim%20Maurice%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Cairo%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%20%3C%2Fstrong%3E82%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20Series%20A%3C%2Fp%3E%0A
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The Settlers

Director: Louis Theroux

Starring: Daniella Weiss, Ari Abramowitz

Rating: 5/5

White hydrogen: Naturally occurring hydrogenChromite: Hard, metallic mineral containing iron oxide and chromium oxideUltramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica contentOphiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on landOlivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour

While you're here
Pakistan v New Zealand Test series

Pakistan: Sarfraz (c), Hafeez, Imam, Azhar, Sohail, Shafiq, Azam, Saad, Yasir, Asif, Abbas, Hassan, Afridi, Ashraf, Hamza

New Zealand: Williamson (c), Blundell, Boult, De Grandhomme, Henry, Latham, Nicholls, Ajaz, Raval, Sodhi, Somerville, Southee, Taylor, Wagner

Umpires: Bruce Oxerford (AUS) and Ian Gould (ENG); TV umpire: Paul Reiffel (AUS); Match referee: David Boon (AUS)

Tickets and schedule: Entry is free for all spectators. Gates open at 9am. Play commences at 10am

Our family matters legal consultant

Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Zodi%20%26%20Tehu%3A%20Princes%20Of%20The%20Desert
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EEric%20Barbier%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EYoussef%20Hajdi%2C%20Nadia%20Benzakour%2C%20Yasser%20Drief%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

The specs

Engine: Four electric motors, one at each wheel

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Sole survivors
  • Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
  • George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
  • Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
  • Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Company profile

Name: Thndr

Started: October 2020

Founders: Ahmad Hammouda and Seif Amr

Based: Cairo, Egypt

Sector: FinTech

Initial investment: pre-seed of $800,000

Funding stage: series A; $20 million

Investors: Tiger Global, Beco Capital, Prosus Ventures, Y Combinator, Global Ventures, Abdul Latif Jameel, Endure Capital, 4DX Ventures, Plus VC,  Rabacap and MSA Capital

THE BIO

Family: I have three siblings, one older brother (age 25) and two younger sisters, 20 and 13 

Favourite book: Asking for my favourite book has to be one of the hardest questions. However a current favourite would be Sidewalk by Mitchell Duneier

Favourite place to travel to: Any walkable city. I also love nature and wildlife 

What do you love eating or cooking: I’m constantly in the kitchen. Ever since I changed the way I eat I enjoy choosing and creating what goes into my body. However, nothing can top home cooked food from my parents. 

Favorite place to go in the UAE: A quiet beach.

Aayan%E2%80%99s%20records
%3Cp%3E%3Cstrong%3EYoungest%20UAE%20men%E2%80%99s%20cricketer%3C%2Fstrong%3E%3Cbr%3EWhen%20he%20debuted%20against%20Bangladesh%20aged%2016%20years%20and%20314%20days%2C%20he%20became%20the%20youngest%20ever%20to%20play%20for%20the%20men%E2%80%99s%20senior%20team.%20He%20broke%20the%20record%20set%20by%20his%20World%20Cup%20squad-mate%2C%20Alishan%20Sharafu%2C%20of%2017%20years%20and%2044%20days.%3Cbr%3E%20%3Cbr%3E%3Cstrong%3EYoungest%20wicket-taker%3C%2Fstrong%3E%3Cbr%3EAfter%20taking%20the%20wicket%20of%20Bangladesh%E2%80%99s%20Litton%20Das%20on%20debut%20in%20Dubai%2C%20Aayan%20became%20the%20youngest%20male%20cricketer%20to%20take%20a%20wicket%20against%20a%20Full%20Member%20nation%20in%20a%20T20%20international.%3Cbr%3E%20%3Cbr%3E%3Cstrong%3EYoungest%20in%20T20%20World%20Cup%20history%3F%3C%2Fstrong%3E%3Cbr%3EAayan%20does%20not%20turn%2017%20until%20November%2015%20%E2%80%93%20which%20is%20two%20days%20after%20the%20T20%20World%20Cup%20final%20at%20the%20MCG.%20If%20he%20does%20play%20in%20the%20competition%2C%20he%20will%20be%20its%20youngest%20ever%20player.%20Pakistan%E2%80%99s%20Mohammed%20Amir%2C%20who%20was%2017%20years%20and%2055%20days%20when%20he%20played%20in%202009%2C%20currently%20holds%20the%20record.%3C%2Fp%3E%0A

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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Global state-owned investor ranking by size

1.

United States

2.

China

3.

UAE

4.

Japan

5

Norway

6.

Canada

7.

Singapore

8.

Australia

9.

Saudi Arabia

10.

South Korea

Updated: April 01, 2022, 6:29 PM