DUBAI // The Burj Khalifa has unveiled two gold-dispensing ATMs, the first of several such machines that will begin selling gold bars in Dubai during the next few weeks.
One of the ATMs is housed on the 124th floor of the building, the At The Top observation deck; the other is in the souvenir shop on the ground floor.
Gold fans can purchase as little as 2.5 grams of the precious metal up to as much as 1 ounce.
A 2.5 gram bar costs Dh540 while a 1 ounce bar - the equivalent of 28 grams - could be bought for D5,645.
These prices compare to Dh435 for 2.5 grams and Dh 4,874 for an ounce of gold on the international gold market.
The price of the gold sold in the machines will fluctuate to represent the spot price of gold.
Other machines could soon open at Ski Dubai in the Mall of the Emirates, the InterContinental Hotel at Festival City, and the Atlantis hotel.
The UAE is now home to six Gold to Go vending machines; five call Dubai home and one is open for business at the Emirates Palace Hotel in Abu Dhabi. The machine in the capital opened in May last year and sold out on its first day of operation.
At least 300 more of the ATMs will be rolled out in the Middle East and North Africa during the next two years, said Thomas Geissler, the chief of Ex Oriente Lux, the company that makes the machines. The firm markets it wares most heavily in the Middle East and North Africa, India and the US.
“You can buy a souvenir at market price. It’s a good deal for everybody,” he said.
In a region that has long treasured the precious metal, the company hopes to tap into its popularity.
The price of gold rose 26 per cent last year amid concerns about the US dollar and other currencies. Anagha Kulkarni, 41, a housewife visiting the Emirates from India, excitedly explained the vending machine to family members back home yesterday during a telephone call, and told them she planned to buy a bar.
At The Top offers other unique – though less pricy – keepsakes, including a water bottle adorned with Swarovski crystals and a limited-edition bolt used in the construction of the Burj Khalifa.
Most tourists, however, buy T-shirts and mugs, said an At The Top sales associate.
“I prefer things that you can use,” said Laetitia Muth, 34, a French tourist who was browsing the T-shirts in the shop.
Another popular item is a miniature model of the Burj Khalifa, available in gold and silver, said the associate. “Tourists usually prefer the silver,” she said.
chuang@thenational.ae
The rules of the road keeping cyclists safe
Cyclists must wear a helmet, arm and knee pads
Have a white front-light and a back red-light on their bike
They must place a number plate with reflective light to the back of the bike to alert road-users
Avoid carrying weights that could cause the bike to lose balance
They must cycle on designated lanes and areas and ride safe on pavements to avoid bumping into pedestrians
Company profile
Company: Zywa
Started: 2021
Founders: Nuha Hashem and Alok Kumar
Based: UAE
Industry: FinTech
Funding size: $3m
Company valuation: $30m
The biog
Mission to Seafarers is one of the largest port-based welfare operators in the world.
It provided services to around 200 ports across 50 countries.
They also provide port chaplains to help them deliver professional welfare services.
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.”
