• Sofitel Abu Dhabi Corniche Hotel with updated Covid-19 precautionary measures. A distance sign at the check-in area of the hotel. Victor Besa / The National
    Sofitel Abu Dhabi Corniche Hotel with updated Covid-19 precautionary measures. A distance sign at the check-in area of the hotel. Victor Besa / The National
  • Labourers working at one of the construction site during the sunset in Dubai. Pawan Singh / The National)
    Labourers working at one of the construction site during the sunset in Dubai. Pawan Singh / The National)
  • A man wearing a protective mask is seen shopping in Ibn Batutta mall. Pawan Singh / The National
    A man wearing a protective mask is seen shopping in Ibn Batutta mall. Pawan Singh / The National
  • People wearing a protective face mask on the Abra in Dubai Creek in Dubai. Pawan Singh / The National
    People wearing a protective face mask on the Abra in Dubai Creek in Dubai. Pawan Singh / The National
  • Bus commuters at downtown Abu Dhabi heading home during rush hour. Victor Besa / The National
    Bus commuters at downtown Abu Dhabi heading home during rush hour. Victor Besa / The National
  • One of the guests at the Towers Rotana hotel on Sheikh Zayed Road in Dubai. Pawan Singh / The National
    One of the guests at the Towers Rotana hotel on Sheikh Zayed Road in Dubai. Pawan Singh / The National

Government

More fines and closures as Dubai and Abu Dhabi authorities enforce Covid-19 rules

Officials increased inspections across the UAE to ensure shops, salons and leisure centres are operating safely

Haneen Dajani
Haneen Dajani
UAE

September 20, 2020

  • English
  • Arabic

Authorities have closed two sports centres in Dubai and three shops in Abu Dhabi for breaching Covid-19 safety measures.

A sports centre in Al Qusais was shut because of a failure to practise physical distancing.

Dubai Economy on Sunday also said it fined 10 businesses and warned seven for breaking rules designed to protect public health.

The 10 included a swimming academy in Al Quoz and fitness centres in Al Karama, Al Badaa and Al Quoz.

Fines were also issued to outlets in several shopping centres “for not adhering to physical distancing guidelines and employees’ lack of commitment to wearing masks”.

“Public health is a top priority and stern action will be taken against any non-compliance with the precautionary measures found during inspections, or that may be brought to its [Dubai Economy’s] attention by consumers and the public,” Dubai Economy said.

Dubai Municipality said it had closed an “entertainment area” in the emirate for breaching safety measures.

Officials said the venue in question had hosted a birthday celebration, contravening guidelines covering large gatherings.

In a post on Twitter, the authority said it had fined a further 17 establishments and issued 42 warnings for their failure to comply with Covid-19 regulations.

Of 2,366 inspections carried out on Saturday, 2,306 premises met safety requirements.

Authorities have stepped up efforts in recent weeks to ensure everyone is following Covid-19 safety measures.

The UAE on Sunday reported 674 new cases of Covid-19 as testing is increased, but officials have repeatedly said public compliance with regulations is vital to beating outbreaks.

In Abu Dhabi, officials swept through 5,000 shops, closing three, fining 27 and warning 131 during inspections from September 10 to September 17, authorities said.

“Abu Dhabi Department of Economic Development’s daily monitoring campaign of businesses and commercial markets is ongoing across Abu Dhabi,” the department said. “The monitoring and control campaign is also ensuring precautionary health measures are in full accordance with the guidelines issued by the department.”

Inspectors visited shopping centres, pharmacies, gyms, money exchanges and beauty salons, among other places.

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.”

THE BIO

Born: Mukalla, Yemen, 1979

Education: UAE University, Al Ain

Family: Married with two daughters: Asayel, 7, and Sara, 6

Favourite piece of music: Horse Dance by Naseer Shamma

Favourite book: Science and geology

Favourite place to travel to: Washington DC

Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.

Sarfira

Director: Sudha Kongara Prasad

Starring: Akshay Kumar, Radhika Madan, Paresh Rawal 

Rating: 2/5

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