Travel agents do not expect a fall in numbers of pilgrims
ABU DHABI // Pilgrims have dismissed concerns about Mers in Saudi Arabia and are determined to travel there for the Haj.
The number of cases of the potentially fatal virus has increased in recent months – particularly in Saudi Arabia, where millions will gather in Mecca after Ramadan – but travel agents say they do not expect a drop in their customer numbers.
“We are not afraid. We have decided we will go to Mecca,” said Emirati Adil Al Awadi, from Ras Al Khaimah.
“I have been listening about it [Middle East Respiratory Syndrome] in the media but I have not found anyone who has cancelled a trip due to this coronavirus. All devout will travel to Mecca as usual to perform the Haj and nothing can stop them,” Mr Al Awadi said. “Precautions must be taken but we shouldn’t stop travelling or leave the place because of some disease.”
Dr Hamad Al Ameri, an Emirati from Abu Dhabi, agreed. “Muslims who believe in destiny and Allah would not feel afraid. Those who are determined to travel, will travel,” he said.
Mers coronavirus was first identified in 2012 and the number of laboratory-confirmed cases of infection stands at 261, including 93 deaths, according to the World Health Organisation.
But Saudi Arabia said on Friday the number of Mers deaths in the kingdom had risen to 107.
The UAE Ministry of Health has ruled out the prospect of any travel ban to Saudi Arabia for the Haj.
Heath Authority – Abu Dhabi (Haad) has provided several guidelines for preventing respiratory illnesses, which include: wash your hands with soap and water for 20 seconds; cover your nose and mouth when you sneeze; clean and disinfect frequently touched surfaces; and wear masks at mass gatherings, such as the Haj.
Travel agents expect it to be business as usual this year.
“Last year there was much hue and cry about Mers but nothing happened – we received Haj pilgrims as usual,” said Ahmed Mustapha, manager at Aleetisam for Haj and Umrah, in Dubai.
“I don’t think this year there will be any change of mood. We have not even started receiving applications. We are awaiting dates from the Saudi Arabia embassy in the UAE for submitting applications for Haj visas.”
Faisal Khan, who works at Al Burj Haj and Umrah Travel and Tours, in Abu Dhabi, said it had not received any guidelines from health authorities yet.
However, Mr Khan ruled out any fear among applicants as a result of Mers and said travellers would also get the regular vaccines against influenza.
“Last year we had reports about this but nobody who travelled there was infected. They are administered with vaccines prescribed by the health authority. It is compulsory to take those vaccines before travel, otherwise they wouldn’t be allowed.”
Haad has said Mers was not a public-health concern and has urged people to remain calm.
Last year about 5,000 pilgrims from the UAE made the Haj, which this year is expected to fall during the first week of October.
anwar@thenational.ae
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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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