FNC highlights consumer frustration over telecoms sales calls



ABU DHABI // Customers are frustrated by sales calls from the two telecommunications operators and complaints filed to them have nearly doubled, the Federal National Council heard.

Dubai member Hamad Al Rahoomi quoted a media report saying 13,000 complaints were made against Etisalat last year, while complaints to both Etisalat and du increased by 265 per cent from 2015.

Mr Al Rahoomi said some of the complaints were because salespeople who offered services over the phone often lacked details, so customers did not understand what they would be paying for.

“How can they accept an offer over the phone and without a contract?” he asked. “People are complaining and abroad they are talking about it.”

To add to the trouble, consumers are surprised that when they ask to cancel services they signed up for over the phone, the process is too complicated and they have to cancel them in person.

“They are taking advantage of their databases, which include customers’ details,” Mr Al Rahoomi said. “Imagine if every company did what Etisalat and du are doing. Phones will never stop ringing.”

Hamad Al Mansouri, director of the Telecommunications Regulatory Authority, said there were rules to selling by phone and callers should not be persistent if the customer showed a lack of interest.

Consumers have the right to ask to be placed on a list exempting them from receiving such calls, Mr Al Mansouri said.

When customers complain they were not informed about certain details before registering for a service, an investigation is carried out based on call recordings and those customers can be compensated.

Mr Al Mansouri said any service for which a customer had registered by phone could also be cancelled by phone.

Mr Al Rahoomi said the public needed more help in dealing with the problem.

“There is no need for all this disturbance,” he said. “There are only two companies and there should be a system that facilitates for the public to deal with these issues,” said he said.

Mr Al Mansouri said mandates introduced last year directed all complaints to the TRA, rather than to companies. Seven complaints had been received so far.

“We are ready to deal with any complaints,” he said.

“This is good to know,” Mr Al Rahoomi replied. “Because when you complain to the company, there is not much they will do.”

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Company name: Klipit

Started: 2022

Founders: Venkat Reddy, Mohammed Al Bulooki, Bilal Merchant, Asif Ahmed, Ovais Merchant

Based: Dubai, UAE

Industry: Digital receipts, finance, blockchain

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Investors: Privately/self-funded

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Where: du Arena, Abu Dhabi

When: Saturday November 24

Rating: 4/5

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Novak Djokivic (1) v Marin Cilic (9) from 2pm UAE time

Roger Federer (4) v Dominic Thiem (5) from 7pm

Stefanos Tsitsipas (8) v Alexander Zverev (3) from 9.30pm

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Thursday results
UAE beat Kuwait by 86 runs
Qatar beat Bahrain by five wickets
Saudi Arabia beat Maldives by 35 runs

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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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Started: March 2018
Founders: Mohamed Khashaba, Mohamed Abdallah, Mohamed Adel Wafiq and Ayman Taha
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