Fishmongers tackle bluefin tuna at a Tokyo market. The loss of Japanese exports has left importers of the fish in the lurch.
Fishmongers tackle bluefin tuna at a Tokyo market. The loss of Japanese exports has left importers of the fish in the lurch.

Japanese food ban beginning to bite



The Fukushima nuclear emergency in Japan has taken its toll on the multibillion-dollar global market for Japanese speciality foods, with import restrictions hitting foodstuffs such as high-priced tuna and vegetables.

Import bans on perishable goods are preventing restaurants and supermarkets around the world from buying Japanese fish, exports of which were worth US$1.69 billion (Dh6.2bn) to the Japanese economy in 2008, according to the latest available data from the UN Food and Agriculture Organization.

The loss of the Japanese market has left importers scrambling for alternative sources of bluefin tuna, which sushi restaurants prize for otoro, a lean cut from the fish's belly with an unmistakable flavour.

"It's a big seller," said Shane MacNeill, the head chef at Yotto, a sushi bar at the Yas Marina Hotel. "When fresh, it's incredibly tasty and very soft."

Otoro is typically the priciest type of fish available at sushi restaurants. Two pieces of nigiri sushi, made with otoro, cost Dh40 at Yotto.

However, Mr MacNeill said the impact of the nuclear quarantine was not limited to fish.

"We use fresh Japanese vegetables, including shishito peppers and yuzu, a type of Japanese citrus."

The restaurant also imported sea urchin fresh from Japan for use in sushi, maki rolls and a classical Japanese dish called chawanmushi, a kind of steamed egg custard. "Since what's happened, we've stopped importing," Mr MacNeill said.

Last week, the UAE joined countries including the US and Canada in restricting the imports of some Japanese produce.

The Ministry of Environment and Water on Thursday banned imports of fresh Japanese perishables including vegetables, fruits, dairy products, meat and seafood.

Wholesalers of Japanese produce said the ban would have abig impact on sales. "There are so many Japanese products that we're not able to import now," said one distributor at Fresh Express, one of the UAE's major importers, who asked not to be identified.

He said while bluefin tuna and octopus could be sourced from the Mediterranean and had not yet been subject to major fluctuations in price, vegetables and other produce were proving more difficult.

"We're trying to source a lot of the produce from China … the quality will be different for some items, but very few."

Up to 2 tonnes of bluefin tuna are sold throughout the UAE every month, sourced from Spain, Malta, Greece and Portgual, according to Fresh Express.

Bluefin tuna meat sells for Dh350 to Dh400 per kilogram. A single tuna, weighing about 170kg, typically produces about Dh28,000 worth of meat once wastage is cleaned off. Mr MacNeill said.

But the lack of Japanese tuna production could accelerate the depletion of dwindling stocks of Mediterranean bluefin. The EU caps the amount of bluefin that can be caught each year to preserve its native species.

While other species of tuna, such as yellowfin and albacore, could be used in the same dishes, Mr MacNeill said they were poor substitutes.

"You won't get that kind of succulent, juicy flavour that you'd get from the bluefin," he said.

Company Profile

Name: HyveGeo
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

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.”

Company Profile

Company name: Hoopla
Date started: March 2023
Founder: Jacqueline Perrottet
Based: Dubai
Number of staff: 10
Investment stage: Pre-seed
Investment required: $500,000

Company profile

Company name: Letswork
Started: 2018
Based: Dubai
Founders: Omar Almheiri, Hamza Khan
Sector: co-working spaces
Investment stage: $2.1 million in a seed round with investors including 500 Global, The Space, DTEC Ventures and other angel investors
Number of employees: about 20

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This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home. 

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Director: Richie Mehta

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COMPANY PROFILE

Company name: Almouneer
Started: 2017
Founders: Dr Noha Khater and Rania Kadry
Based: Egypt
Number of staff: 120
Investment: Bootstrapped, with support from Insead and Egyptian government, seed round of
$3.6 million led by Global Ventures

The specs: 2018 Mercedes-Benz S 450

Price, base / as tested Dh525,000 / Dh559,000

Engine: 3.0L V6 biturbo

Transmission: Nine-speed automatic

Power: 369hp at 5,500rpm

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