With rice prices hitting a 25-year high earlier this year, officials are keeping close watch on reserves.
With rice prices hitting a 25-year high earlier this year, officials are keeping close watch on reserves.
With rice prices hitting a 25-year high earlier this year, officials are keeping close watch on reserves.
With rice prices hitting a 25-year high earlier this year, officials are keeping close watch on reserves.

Inspectors find illegal rice cache


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SHARJAH // City inspectors searching a villa in the central Maysaloon district last week for signs that too many people were living there made an unexpectedly fragrant discovery: more than 2.5 tonnes of Indian basmati rice being illegally hoarded by the owner. The unnamed man, the proprietor of a nearby grocery, allegedly planned to make a large profit by selling the rice at a significant markup during Ramadan, said municipal security officials, who are conducting a campaign to stop landlords illegally dividing their villas and renting out the spaces to multiple tenants.

The man has been charged with breaking Ministry of Economy rules on keeping basic foodstuffs and using a home for non-residential purposes and ordered to return the rice to his shop. With rice prices hitting a 25-year high earlier this year, officials are keeping close watch on reserves, particularly as demand increases in the run-up to Ramadan. Rice importers have warned that a black market could develop as supplies - at their lowest level since 1976 - wane. Hoarding is believed to be exacerbating the shortage.

Mohammed Salem al Kaabi, the municipality's head of security, said inspectors found 66 bags of rice, each weighing 40kg, in a divided section of the villa: "The total amount reached 2,640kg." In response to the worldwide rice shortage, India recently introduced a ban on exports of non-basmati strains. There are reports that top-quality Indian rice is being smuggled into the UAE, and that low-grade strains from other countries are being sold as coming from South India. Last year, the UAE imported about 750,000 tonnes of rice from countries including India, Pakistan, Thailand and Egypt.

Meanwhile, the illegally stored rice was not the villa owner's only problem. Inspectors found he had also cordoned off a separate section of the building to use "as a residence for 38 workers of some companies plus two families", said Mr Kaabi. The villa's electricity and water have been cut off until the illegal tenants have been evicted by the owner, who was also fined Dh5,000 for the offence.

The inspectors also uncovered another villa in the neighbourhood that had been turned into a small clothing factory. "Setting up illegal factories in residential areas is not only a violation of the emirate's residential laws it is also dangerous for the residents. "Look in terms of fighting fires, a residential area is very different to an industrial area," said Mr Kaabi, who added that the owner of the second villa was fined Dh10,000 and had his water and power cut.

The municipality has ordered a policy of zero tolerance towards anyone breaking zoning laws. @Email:ykakande@thenational.ae

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 specs

Engine: 4-litre twin-turbo V8

Transmission: eight-speed PDK

Power: 630bhp

Torque: 820Nm

Price: Dh683,200

On sale: now

Sunday:
GP3 race: 12:10pm
Formula 2 race: 1:35pm
Formula 1 race: 5:10pm
Performance: Guns N' Roses

Some of Darwish's last words

"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008

His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.

UAE v Gibraltar

What: International friendly

When: 7pm kick off

Where: Rugby Park, Dubai Sports City

Admission: Free

Online: The match will be broadcast live on Dubai Exiles’ Facebook page

UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)

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