DUBAI // A civilian network of mystery shoppers is trawling the markets of Dubai in pursuit of counterfeit goods, and passing on their tips to the police.
As many as 40 such investigators walk the streets daily in a bid to trick fake-goods traders into revealing where they keep their stock. They represent United Trademarks and Patent Services, an anti-counterfeit organisation hired by luxury brands to battle the rising tide of fake goods.
Makers of fake goods can erode an established brand's bottom-line performance. The global trade in counterfeit goods is worth $600 billion (Dh2.2 trillion) and accounts for as much as 7 per cent of the world economy, according to figures from the International Anti-Counterfeiting Coalition.
"Dubai is a major transit hub because of the purchasing power and the number of tourists," said Imad Nazmi el Badawi, the United Trademarks director. "That makes it attractive to these people."
His company, used by labels such as Louis Vuitton and Montblanc, is among a handful of brand protection groups investigating copyright infringements. The information they provide has helped anti-counterfeiting specialists at the Dubai Police Criminal Investigation Department in conducting inquiries and carrying out raids.
"Once we receive the complaint we start our own investigation and, if it proves correct, we raid the location, arrest the people and seize the counterfeit products," said Major Salah bu Se'aba, who heads the police anti-economic crime department. "On average we investigate about 10 cases a week."
United's team comes from a variety of backgrounds and includes people with an expert knowledge of car parts, information technology and luxury accessories. By posing as tourists, they convince shop owners to take them to large apartments used as warehouses for storing counterfeit goods.
"Three years ago the retailers would show us everything," said Mr el Badawi. "Now they hide their fakes in hidden rooms. We have scared them.
Some companies don't stop their involvement once the police are called. Montblanc employs its own legal team that goes into action once a major fake-goods case involving the firm goes to court, said Joe Nahhas, its UAE brand director.
"It is something that we take very seriously," he said. "It's difficult to stop it entirely but we've certainly made inroads with it."
Mr. Nahas declined to disclose how much the company loses from the trade in counterfeit products.
The United team meets every Sunday morning to discuss which brand to focus on for the week and what targets they need to reach. Each staffer's weekly goal is to record the location of at least two apartments used for storage of fake goods. Consistently meeting the quota pays off in year-end bonuses, Mr el Badawi said.
Though wise in spotting fake goods, the mystery shoppers are schooled in the tricks of the trade before being sent onto the streets, said Sarmad Hasan Manto, a lawyer and office manager at United.
"You have to convince the guy that you don't like the quantity which they are showing you," said Mr Manto. "He will take you to an apartment. There's a psychological game involved. You can't just go to Karama and shout about how you want fake goods."
Using shopping tips provided by United, a reporter from The National, posing as a tourist, was able get a firsthand look at a storage apartment for counterfeit goods. In an area near a dozen Karama shops, the reporter was taken to four or five different outlets by a sales agent before being brought to an apartment in a nearby residential building.
The number on the door of the third-floor apartment was scratched out and, inside, the living room was sparsely furnished. A bookshelf was then pushed open, revealing a huge stash of what appeared to be ersatz Louis Vuitton bags. Closed-circuit television cameras covered every angle of the hidden room.
[ mcroucher@thenational.ae ]
* With additional reporting by Wafa Issa
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Started: 2023
Founders: Abdulaziz bin Redha, Dr Samsurin Welch, Eva Morales and Dr Harjit Singh
Based: Cambridge and Dubai
Number of employees: 8
Industry: Sustainability & Environment
Funding: $200,000 plus undisclosed grant
Investors: Venture capital and government
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Favourite food: Tabbouleh, greek salad and sushi
Favourite TV show: That 70s Show
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December 11: 'My husband died, so what happens to the Dh240,000 he owes in the UAE?'
JL, a housewife from India, wrote to us about her husband, who died earlier this month. He left behind an outstanding loan of Dh240,000 and she was hoping to pay it off with an insurance policy he had taken out. She also wanted to recover some of her husband’s end-of-service liabilities to help support her and her son.
“I have no words to thank you for helping me out,” she wrote to The Debt Panel after receiving the panellists' comments. “The advice has given me an idea of the present status of the loan and how to take it up further. I will draft a letter and send it to the email ID on the bank’s website along with the death certificate. I hope and pray to find a way out of this.”
November 26: ‘I owe Dh100,000 because my employer has not paid me for a year’
SL, a financial services employee from India, left the UAE in June after quitting his job because his employer had not paid him since November 2018. He owes Dh103,800 on four debts and was told by the panellists he may be able to use the insolvency law to solve his issue.
SL thanked the panellists for their efforts. "Indeed, I have some clarity on the consequence of the case and the next steps to take regarding my situation," he says. "Hopefully, I will be able to provide a positive testimony soon."
October 15: 'I lost my job and left the UAE owing Dh71,000. Can I return?'
MS, an energy sector employee from South Africa, left the UAE in August after losing his Dh12,000 job. He was struggling to meet the repayments while securing a new position in the UAE and feared he would be detained if he returned. He has now secured a new job and will return to the Emirates this month.
“The insolvency law is indeed a relief to hear,” he says. "I will not apply for insolvency at this stage. I have been able to pay something towards my loan and credit card. As it stands, I only have a one-month deficit, which I will be able to recover by the end of December."
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Started: 2019
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Based: Dubai
Sector: FinTech
Initial investment: $2.45 million
Current number of staff: 86
Investment stage: Pre-series B
Investors: Investcorp, Liberty City Ventures, Fatima Gobi Ventures, Primal Capital, Wealthwell Ventures, FHS Capital, VN2 Capital, local family offices
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Uefa Champions League final:
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Word of advice: By being patient, good things will come and by staying positive you’ll have the will to continue to love what you're doing
Fourth Arab Economic and Social Development Summit
As he spoke, Mr Aboul Gheit repeatedly referred to the need to tackle issues affecting the welfare of people across the region both in terms of preventing conflict and in pushing development.
Lebanon is scheduled to host the fourth Arab Economic and Social Development Summit in January that will see regional leaders gather to tackle the challenges facing the Middle East. The last such summit was held in 2013. Assistant Secretary-General Hossam Zaki told The National that the Beirut Summit “will be an opportunity for Arab leaders to discuss solely economic and social issues, the conference will not focus on political concerns such as Palestine, Syria or Libya". He added that its slogan will be “the individual is at the heart of development”, adding that it will focus on all elements of human capital.
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Director: Kushan Nandy
Starring: Nawazuddin Siddiqui, Bidita Bag, Jatin Goswami
Three stars
COMPANY PROFILE
Company name: Klipit
Started: 2022
Founders: Venkat Reddy, Mohammed Al Bulooki, Bilal Merchant, Asif Ahmed, Ovais Merchant
Based: Dubai, UAE
Industry: Digital receipts, finance, blockchain
Funding: $4 million
Investors: Privately/self-funded
The specs
Engine: 2.3-litre 4cyl turbo
Power: 299hp at 5,500rpm
Torque: 420Nm at 2,750rpm
Transmission: 10-speed auto
Fuel consumption: 12.4L/100km
On sale: Now
Price: From Dh157,395 (XLS); Dh199,395 (Limited)
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Company: Eco Way
Started: December 2023
Founder: Ivan Kroshnyi
Based: Dubai, UAE
Industry: Electric vehicles
Investors: Bootstrapped with undisclosed funding. Looking to raise funds from outside
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