An electrical fault caused a fire in Kitchen Yadoo in Ajman. Courtesy: Mohammed Al Mandoos
An electrical fault caused a fire in Kitchen Yadoo in Ajman. Courtesy: Mohammed Al Mandoos
An electrical fault caused a fire in Kitchen Yadoo in Ajman. Courtesy: Mohammed Al Mandoos
An electrical fault caused a fire in Kitchen Yadoo in Ajman. Courtesy: Mohammed Al Mandoos

Competitors help rebuild local Ajman restaurant after it was destroyed in fire


Salam Al Amir
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Hundreds of Emirati buinessmen are using social media to help out a local restaurant in Ajman after it was destroyed in a fire last week.

Nearly 200 cafe and restaurant owners in the UAE have united in a WhatsApp group to help Mohammed Al Mandoos rebuild and start his business again.

On June 4, a short circuit in one of the air conditioning units of the restaurant caused a blaze that destroyed Kitchen Yadoo, which translates to "grandfather" from Arabic.

“Staff members were returning to work at around 5.30am that day when they saw thick clouds of dark smoke billowing out of the restaurant,” said Mr Al Mandoos, 31.

He immediately called the emirate’s civil defence. The fire was extinguished in less than two hours but the damage was done.

Kitchen Yadoo was destroyed in a fire but Emirati restaurant owners have come together to raise money to rebuild it. Courtesy: Mohammed Al Mandoos
Kitchen Yadoo was destroyed in a fire but Emirati restaurant owners have come together to raise money to rebuild it. Courtesy: Mohammed Al Mandoos

No casualties were reported but Mr Al Mandoos saw his place burnt down with the damages estimated at Dh400,000.

The restaurant first opened its doors in April 2018 in Al Jurf area. It is owned and run by a 100 per cent Emirati workforce.

“It was the first in Ajman to be entirely run by Emirati nationals, even our chef is Emirati, but I always thank god for everything that happens. Most importantly, no one was hurt in the fire,” he said.

Mr Al Mandoos was soon surprised to learn that his competitors were organising on WhatsApp to try raise funds to help him repair and reopen his business.

“Khaled Al Matroushi, the man who started the WhatsApp group, asked members to help me out,” said Mr Al Mandoos.

Two days after the fire, he received money to help him setup his business once again.

He did not wish to disclose the amount he was given but said it was crucial to rebuilding.

“Without it, immediate renovation of the restaurant wouldn’t have been possible,” he said.

“The group members did not want to leave me alone in this. It's not strange because these are the ethics of our religion and the noble values instilled in us by UAE’s Founding Father, the late Sheikh Zayed.”

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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