ABU DHABI // Food outlets across the country continue to overcharge customers for bottled water, despite recent press reports and a warning from officials that the practice is illegal.
The Ministry of Economy requires restaurants to sell local water for the same regulated price as shops.
But earlier this month, a survey of 60 restaurants and cafes by The National found that almost all sold local water at vastly inflated prices. One increased the price by more than 2,000 per cent, and mark-ups of more than 1,000 per cent were common.
The average price was calculated at Dh28 - a mark-up of almost 300 per cent on the supermarket average of Dh7.50.
Half of the surveyed food outlets in Abu Dhabi and Dubai served only imported water and not the cheaper, local options, and not one of the restaurants that served local water complied with the price law.
But most outlets in malls in Abu Dhabi and Dubai surveyed by The National claimed that they did not know about the rules.
"It doesn't apply to coffee shops and restaurants," said Jen Dellos, Costa Coffee's operations manager in Abu Dhabi's Al Wahda Mall.
She said she could not comment on whether Costa would change its prices, but she added that "if it's the law, we need to follow it".
The coffee shop sells a 500ml bottle of Aquafina at Dh5 but an official at the ministry said the price should not exceed Dh3. The ice cream shop next door, Morelli's, also charges Dh5.
Dr Hashim Al Nuaimi, the ministry's head of consumer protection, told The National that any more than Dh3 for a bottle that cost Dh1.50 in a store was regarded as "taking advantage of the consumer".
He called the practice "unfair, completely wrong, unacceptable and actually illegal".
Although many of the fast food outlets were charging lower prices for their water, others in Al Wahda Mall were making substantial mark-ups. The chocolatier Galler, for example, charges Dh8 for a small bottle of Arwa.
In almost every case, the shops' managers professed ignorance of the law.
Some restaurants sold only expensive imports. Bloomsbury's charges Dh13 for a large bottle of Acqua Panna, while Starbucks sells a small, 300ml bottle of Highland Spring for Dh6.
A worker at Barista coffee shop, where a small bottle of Jeema costs Dh4, said the prices were high because the outlets needed to pay taxes and mall fees.
"I had no idea about this law but there is more expensive than our water here," he said. "The decision is up to the mall management to change the prices."
Restaurants in malls were some of the worst offenders charged even more. Japengo in Dubai's Ibn Battuta Mall charges Dh10 for a small bottle of Masafi, with a large bottle costing Dh16.
Nearby, Finz Mediterranean sells a small bottle of local water for Dh8. Khalid Farahat, the restaurant general manager, said he had not heard about the law.
"Nobody knows of this law in the mall's restaurants," he said. "They should send a letter announcing it properly in the newspaper that it is not allowed but no one informed me."
If the law were properly announced, he said, he would change his prices because "we must follow the law". "How are we meant to know if the Ministry of Economy doesn't make an appropriate statement?" he asked.
An increasing number of consumers have been complaining about being overcharged for buying bottles of local water across the country.
Fiona Drew, a Dubai resident, said she had paid Dh10 for a small bottle of local water at Baskin-Robbins in the Atlantis Hotel.
Abu Dhabi resident Roula Khabbaz was charged Dh16 at Le Meridien hotel in the emirate for a small bottle of local water and Dh20 for a large one.
Customers who are overcharged should call the ministry's consumer protection hotline on 600 522225 to report the restaurant.
The hotline is open from 7.30am to 2.30pm; once a complaint is registered, members of staff promised they would "follow-up with the consumer". However, they did not specify whether or not restaurants would be fined.
cmalek@thenational.ae
How being social media savvy can improve your well being
Next time when procastinating online remember that you can save thousands on paying for a personal trainer and a gym membership simply by watching YouTube videos and keeping up with the latest health tips and trends.
As social media apps are becoming more and more consumed by health experts and nutritionists who are using it to awareness and encourage patients to engage in physical activity.
Elizabeth Watson, a personal trainer from Stay Fit gym in Abu Dhabi suggests that “individuals can use social media as a means of keeping fit, there are a lot of great exercises you can do and train from experts at home just by watching videos on YouTube”.
Norlyn Torrena, a clinical nutritionist from Burjeel Hospital advises her clients to be more technologically active “most of my clients are so engaged with their phones that I advise them to download applications that offer health related services”.
Torrena said that “most people believe that dieting and keeping fit is boring”.
However, by using social media apps keeping fit means that people are “modern and are kept up to date with the latest heath tips and trends”.
“It can be a guide to a healthy lifestyle and exercise if used in the correct way, so I really encourage my clients to download health applications” said Mrs Torrena.
People can also connect with each other and exchange “tips and notes, it’s extremely healthy and fun”.
OPINIONS ON PALESTINE & ISRAEL
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Favourite hobby: taking his rescue dog, Sally, for long walks.
Favourite book: anything by Stephen King, although he said the films rarely match the quality of the books
Favourite film: The Shawshank Redemption stands out as his favourite movie, a classic King novella
Favourite music: “I have a wide and varied music taste, so it would be unfair to pick a single song from blues to rock as a favourite"
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KILLING OF QASSEM SULEIMANI
Zimbabwe v UAE, ODI series
All matches at the Harare Sports Club:
1st ODI, Wednesday, April 10
2nd ODI, Friday, April 12
3rd ODI, Sunday, April 14
4th ODI, Tuesday, April 16
UAE squad: Mohammed Naveed (captain), Rohan Mustafa, Ashfaq Ahmed, Shaiman Anwar, Mohammed Usman, CP Rizwan, Chirag Suri, Mohammed Boota, Ghulam Shabber, Sultan Ahmed, Imran Haider, Amir Hayat, Zahoor Khan, Qadeer Ahmed
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8 traditional Jamaican dishes to try at Kingston 21
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- Rock Steady Jerk Chicken: chicken marinated for 24 hours and slow-cooked on the grill
- Mento Oxtail: flavoured oxtail stewed for five hours with herbs
- Ackee and salt fish: the national dish of Jamaica makes for a hearty breakfast
- Jamaican porridge: another breakfast favourite, can be made with peanut, cornmeal, banana and plantain
- Jamaican beef patty: a pastry with ground beef filling
- Hellshire Pon di Beach: Fresh fish with pickles
- Out of Many: traditional sweet potato pudding
Zayed Sustainability Prize
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6.30pm: Dubai Millennium Stakes Group Three US$200,000 (Turf) 2,000m
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8.15pm: Zabeel Mile Group Two $250,000 (T) 1,600m
8.50pm: Meydan Sprint Group Two $250,000 (T) 1,000m
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10pm: Handicap $135,000 (T) 1,600m
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Director: James Cameron
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Rating: 4.5/5
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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