Mellow Trading is one of many companies helping to feed those who have lost their jobs as a result of the pandemic. Courtesy: Mellow Trading
Mellow Trading is one of many companies helping to feed those who have lost their jobs as a result of the pandemic. Courtesy: Mellow Trading
Mellow Trading is one of many companies helping to feed those who have lost their jobs as a result of the pandemic. Courtesy: Mellow Trading
Mellow Trading is one of many companies helping to feed those who have lost their jobs as a result of the pandemic. Courtesy: Mellow Trading

UAE companies adapt to help feed families most in need this Ramadan


Gillian Duncan
  • English
  • Arabic

For many companies across the UAE, helping to provide food for those less fortunate during the month of Ramadan has become something of a tradition.

Today, however, with the outbreak of coronavirus, businesses have been forced to think more creatively to ensure they can still reach those in need.

In previous years, companies hired huge tents to host large iftar dinners for low-income workers.

But with eating together no longer possible a new solution was required. A rise in job loses sparked by the pandemic also meant more people needed help.

“Usually every year we serve cooked food to Muslims as well as non-Muslims, mostly in labour camps, who get together at Iftar to eat together,” said Mohamed Siddique Fazlani, owner of food producer Mellow Trading.

“This year, however, due to restrictions on public gatherings, it was not possible to serve cooked meals.

“We came up with the idea of handing out rations in the form of a kit containing food items like rice, dal, wheat flour, sugar, oil and other essentials.”

Based in Dubai, Mellow Trading was established in 1991 and supplies produce from pulses and nuts to coffee and spices.

Mr Fazlani said that despite Covid-19, the company was still determined to continue its tradition of giving to low-income workers during Ramadan.

The firm began distributing its food kit 20 days before the start of the holy month, and will continue to do so for the duration of this week.

Each kit feeds a family of five for 15 days and by the end of Ramadan Mellow Trading will have provided 220,000kg of food.

“Breaking the fast together with relatives, friends and co-workers gives people a sense of togetherness and unity,” said Mr Fazlani.

“However, sadly, with the Covid-19 pandemic situation and social distancing, this has not been possible.

“The magnitude of people affected by the virus situation is huge - loss of jobs and income has led to people not having money for food.

“Some of these are families are with newborn babies as well as old and sick parents. However, adversity has helped us realise the value of a lot of things that we took for granted.

“I believe that there is always some good that comes out of adversity.”

Earlier this week, it was announced that a Ramadan campaign to provide free meals for UAE workers had vastly exceeded its target.

More than 15 million meals were donated to the 10 Million Meals initiative during the holy month, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, revealed in a tweet.

“Over 100,000 participants from 115 nationalities helped secure 15.3 million meals,” he wrote.

“More than 1,000 volunteers are working daily to distribute food. All segments of the UAE society united to help people in need.”

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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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The specs: 2018 Kia Picanto

Price: From Dh39,500

Engine: 1.2L inline four-cylinder

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Torque: 122Nm @ 4,000rpm

Fuel economy, combined: 6.0L / 100km

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