SHARJAH // Roadside kiosks stocked with fresh fruit, vegetables and dates – and no staff to tally up purchases and take payment – could soon pop up around the Emirates.
Customers can select produce from the unmanned store, calculate the price themselves and drop the correct amount of cash into a box.
One such kiosk has been set up by an Emirati farmer in the emirate of Sharjah. Honesty is key to the success of the project, said farmer Abdullah Al Qaydi, who keeps the stall stocked each day.
The Emirati trusts people to pay for what they take and plans to open more in Ras Al Khaimah, Ajman and Dubai following the success of his first small roadside kiosk, just off the Maliha to Hatta motorway. Fresh aubergines, tomatoes, cucumbers, melons and pears are stacked up on wooden shelves alongside a sign that reads: “Kindly, it is self service.”
The produce is brought in each morning from Mr Al Qaydi’s farms in Maliha, RAK and Dhaid. Unsold produce is cleared away each evening in accordance with municipality hygiene rules.
“I want to show that the UAE is a secure country. I want to make these shops for all the world to see that we can trust all people,” he said. “When I discussed the idea with friends, they said I was crazy, that people would take my vegetables and just go. I thought, ‘it’s OK if people do that’. It is theirs to keep.
“But since we started at the beginning of the year, so many people came to buy and others showed their children the idea.”
The goods are labelled with prices while a calculator and notepad are left at the stall near the cash box so customers can add up their purchases and list what they have bought.
Maitha Khalifa, who drives from her Hatta home to a government job in Dubai, said: “There was always a crowd near the store, so one day I stopped my car when there were few people. I could not believe there was no one to check.
“Everything is very fresh, so I buy from there two or three times a week. I cannot believe no one steals. Does the owner really get money back?”
Mr Al Qaydi said people’s honesty was such that he has never fallen short by a single dirham when the cash is tallied up at the end of day.
Some customers requested that the stall be open for business by 6 or 7am instead of 8.30am. But because the produce is harvested daily, it takes time for the goods to be loaded and transported.
The Maliha stall is now shut because of the summer heat but will reopen in September with plans for additional kiosks in October. The new kiosks could be solar-powered to generate energy to run a small fridge and lights. Produce such as lettuce, broccoli, kale, okra and dates will be added when the shop reopens.
There are similar honesty stores in the UK, Switzerland and India where farmers sell eggs, honey, jams and other products from unattended barns and roadside stalls. Local crafts, such as pottery and carvings, are also on offer and unmanned fridges are stacked with snack options for breakfast and lunch.
While some shops are a resounding success, entrepreneurs have had to scale back owing to difficulty securing local council approval or problems finding a location.
In the UAE, Mr Al Qaydi’s idea has been met with support from the public and officials.
“It is an innovative idea, the first in the region, and its main objective is to send a message to the world that we live in a country of safety and security,” said Mosabeh Alketbi, director of Maliha municipality.
“Frankly, I did not expect a large turnout but it shows all segments of society appreciate the idea.”
rtalwar@thenational.ae
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What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
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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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