Latest: Dubai to impose new restrictions on travel and shopping
In 10 years as a delivery driver, Sundeep never imagined he would drive down Sheikh Zayed Road without another vehicle in sight.
But after Dubai imposed tight restrictions on travel in the emirate last week, Sundeep’s motorcycle has precious little evening traffic to contend with on what is usually Dubai's busiest highway.
Sundeep is one of thousands of delivery drivers in Dubai whose work is a lifeline to people self-isolating to curb the spread of Covid-19.
The drivers are struggling as demand has plummeted in recent weeks.
Now nobody gives tips and I never see my customers. Customers say, 'leave it at the door' and people speak to us in cheap language
“Coronavirus is hell for us,” said Sundeep, who asked his last name and company not be used. “There’s no money for us to save. Where is the money?”
As of April 5, the UAE had 1,505 confirmed cases - more than three times the number recorded a week ago.
The government has ordered people to remain at home for 24-hours per day, unless they work in an essential sector such as healthcare. Only one member of each household can leave the home to shop for essentials.
Delivery drivers are an exception. In the evening, they sit at empty tables outside the restaurants and cafes that did brisk trade until a few weeks ago.
Sundeep earns Dh9.50 per delivery and has no base salary, averaging Dh3,000 in a normal month. His monthly expenses are Dh700 for a bedspace in shared accommodation, Dh300 for food and Dh300 for petrol. That leaves him about Dh1,500 a month to support his family in Nepal.
This month, there might be nothing to remit.
Motorists in breach of the stay-home measures face fines of up to Dh3,000, the equivalent to nearly a month’s salary for Dubai delivery drivers.
Food-delivery service Deliveroo said government authorities allow its drivers to work after 8pm as part of a number of exemptions to the directive.
“We have been working with all agencies employing them to ensure they have the necessary permits to operate as instructed by the government,” said a Deliveroo spokesperson.
The company said "orders are steady" and it did not recognise the decline in sales drivers described to The National.
As an added financial burden, tips dried up when customers began to pay with cards instead of cash to limit human interaction. Additionally, drivers have become stigmatised for their work.
“Now nobody gives tips and I never see my customers,” said Abdul, a Pakistani delivery driver of 13 years experience who asked not to be identified by his full name. “Customers say, ‘leave it at the door’ and people speak to us in cheap language. They put out their hands to us and say, ‘stay away’.”
Sundeep echoed the sentiment, calling for respect and understand during trying times. "What I request is that people remember we are also human, we are not animals so don’t be afraid,” he said.
Laundry services, which typically offer door-to-door pickup, have also taken a hit.
Local laundry service Washmen saw volumes drop by 40 per cent in the third week of March. Its employees have agreed to unpaid leave but workers diagnosed with Covid-19 are guaranteed financial support.
“Morally, paid leave is the only way to treat any employee that is directly impacted by the disease,” said its chief executive, Rami Shaar.
Tipping can also go a long ways to help workers at this time, he noted. “We do encourage consumers in the UAE to remember to tip the people that serve us. These are difficult times and a small tip would have an impact.”
Gig economy workers like drivers have suffered worldwide since the outbreak.
On Monday, the chief executive of ride-hailing app Careem wrote an open appeal to governments requesting support for employees suffering from economic hardship due to the pandemic. Careem estimates its Middle East drivers each need about $500 (Dh1836) a month to survive.
Drivers interviewed by The National were unsure whether they would receive financial assistance if they fell sick.
Talabat and Uber Eats confirmed their delivery drivers were entitled to paid leave if drivers fell ill with Covid-19 but did not specify how much drivers in the UAE would receive.
“The delivery sector offers an important lifeline for the entire community and is an essential service,” said Mo Yildirim, Talabat’s managing director in the UAE.
“The general public relies on food deliveries so they can stay home and stay safe.”
In the meantime, drivers ask those who can stay home to take care. “I cannot stay in my room because I work in the delivery service,” said Abdul, another driver identifying himself by his first name. “So we want other people to always be safe for us. That’s it.”
Other ways to buy used products in the UAE
UAE insurance firm Al Wathba National Insurance Company (AWNIC) last year launched an e-commerce website with a facility enabling users to buy car wrecks.
Bidders and potential buyers register on the online salvage car auction portal to view vehicles, review condition reports, or arrange physical surveys, and then start bidding for motors they plan to restore or harvest for parts.
Physical salvage car auctions are a common method for insurers around the world to move on heavily damaged vehicles, but AWNIC is one of the few UAE insurers to offer such services online.
For cars and less sizeable items such as bicycles and furniture, Dubizzle is arguably the best-known marketplace for pre-loved.
Founded in 2005, in recent years it has been joined by a plethora of Facebook community pages for shifting used goods, including Abu Dhabi Marketplace, Flea Market UAE and Arabian Ranches Souq Market while sites such as The Luxury Closet and Riot deal largely in second-hand fashion.
At the high-end of the pre-used spectrum, resellers such as Timepiece360.ae, WatchBox Middle East and Watches Market Dubai deal in authenticated second-hand luxury timepieces from brands such as Rolex, Hublot and Tag Heuer, with a warranty.
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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.”
THE BIO: Mohammed Ashiq Ali
Proudest achievement: “I came to a new country and started this shop”
Favourite TV programme: the news
Favourite place in Dubai: Al Fahidi. “They started the metro in 2009 and I didn’t take it yet.”
Family: six sons in Dubai and a daughter in Faisalabad
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
Match statistics
Abu Dhabi Harlequins 36 Bahrain 32
Harlequins
Tries: Penalty 2, Stevenson, Teasdale, Semple
Cons: Stevenson 2
Pens: Stevenson
Bahrain
Tries: Wallace 2, Heath, Evans, Behan
Cons: Radley 2
Pen: Radley
Man of the match: Craig Nutt (Harlequins)