In the days of the new UAE, unification meant different things to different people. Some arrived in the years before 1971 to lend their expertise. Others came in search of a better life. And for some, the union meant something as simple yet vital as electricity. In the second of a three-part series to celebrate the UAE's 49th National Day, we speak to two friends from Cairo who came to Dubai in the 1960s.
Mahmoud's sad letters brought Farouq Mohamed and Mohamed Zakaria to Dubai in 1962.
The trio had studied accounting at university in Cairo during the peak of Gamal Abdel Nasser’s pan-Arabism, graduating in 1959. Within a few years, they reunited in Dubai and witnessed the decade before the formation of the UAE.
Mahmoud came to Dubai because of his uncle, a general in Nasser’s revolutionary government. The general had travelled to the Gulf with a delegation representing Egypt’s new pan-Arab government.
At the majlis of Dubai’s then Ruler, Sheikh Rashid, the envoys were asked to send young, trustworthy men from Egypt.
The airport was sabkha. No roads, no people
Mahmoud was volunteered by his uncle. But Dubai was a world removed from cosmopolitan Cairo. Homesick, he pleaded with his friends to join him.
“When he came here, he was alone, lonely,” said Mr Zakaria. “So he sent for his friend, me. He said: ‘Come join me in this desert’.” Mr Mohamed got similar letters.
“We wanted to have the same group that we had in university because it would make life better for Mahmoud,” said Mr Mohamed.
"I liked a challenge. But when I came, I came with the idea that the return ticket was in my pocket. So I said: ‘Let’s see. If I'm happy I shall stay and if I'm not happy I shall return to Cairo’.”
Mr Zakaria was offered a job and a one-way ticket to Dubai by the merchant Ali Al Owais, chairman of Dubai Refreshment Company, which made Pepsi Cola and had Dubai’s first ice factory.
When he collected his ticket from Cairo’s BOAC office, he asked where Dubai was.
The clerk unrolled a map, squinted hard and said: “There is nothing called Dubai. There are two towns only: Muscat and Sharjah.”
Days later, Mr Zakaria was aboard a 12-seater plane, peering out a window in confusion as the pilot announced they were about to land in Dubai. Mr Zakaria saw nothing but sea, sabkha salt flats and a winding creek.
“The pilot said: ‘We are now over Dubai’ and I looked down and said: ‘There is nothing I can see, absolutely nothing. Where is the airport? There is no airport there.’ I was very surprised, because the airport was sabkha. No roads, no people, no water, no electricity – nothing really.”
'Have you ever seen chicken in a can?'
Mr Zakaria and Mahmoud shared a flat in Deira and Mr Mohamed lived across the creek in Bur Dubai at the vegetable bazaar.
There was no air conditioning, so Mr Mohamed carried his mattress on to the roof each night to catch the breeze, only to be woken at dawn each morning when the vegetable auction began.
There was no water connection, so Mr Mohamed took buckets of water from a steel tank on the roof to fill his bathtub so he could have a cool bath at night. In the tub, he’d catch up on the news by reading newspapers printed days earlier in Kuwait or Egypt.
Mr Zakaria worked as an accountant at Dubai Refreshment Company, becoming chief executive in 1968. This was a hit with the fishermen and grocers who previously relied on canned goods, most of which came from Bahrain.
“By the way, have you ever seen a chicken in a can?” said Mr Zakaria. “This is how we ate chicken in 1963. Canned chicken. You opened the can and took the chicken out from inside, one full chicken.”
The factory was on the Dubai Creek, where dhows set off for India, Iraq, Kuwait and Zanzibar. It had a platform on the crowded waterway and everything arrived by dhow, including sugar, concentrate and Pepsi signs. Even the water to make cola was distilled from the creek.
Most dhows were used in the Indian gold trade, which was at its peak. As head accountant to prominent merchants and captains, Mr Mohamed oversaw accounts for the captains who commanded ships laden with gold.
“At that time, Dubai was closer to India [than Egypt],” said Mr Mohamed. “The currency was the rupee; the only foreigners here were Indian. There were also a few Pakistanis and lots of Iranians who were born here.”
Most Arabs were Egyptian teachers, supported by their government, or doctors from Egypt, Palestine and Iraq, who were supported by Kuwait in a show of pan-Arab solidarity.
“At that time, when you walked in the street you knew everyone by face and by name,” said Mr Mohamed. “When you were on the airplane, you knew everyone on the airplane. Those were the days when you had a small community and our only ambition was to meet every night for dinner.”
The British withdrawal
In 1968, the British announced plans to withdraw from the Gulf. Rulers worked to unify the emirates into a single state but Dubai’s business community was preoccupied with trade.
“The concentration was only on business,” said Mr Mohamed. “You had weekly shipments to India and when you are shipping goods to India you are waiting to get news that they have arrived. You get this news after seven days and during these seven days you are not thinking about anything except your money.
"You don't have time for concentrating on anything other than that."
“At that time, the Arab world was boiling about independence,” he said. “Nasser had nationalised the Suez Canal so the whole Arab world was pro Nasser and everyone was waiting to hear Nasser’s speeches.
“Here, they were very careful. Sheikh Rashid didn’t really want to involve himself. He said: ‘I like you but I don’t want to destroy my country.' They managed to compromise.”
'You'd look out and find black carpets'
Oil was discovered at Al Falah field in 1966 and Dubai soon had its first export. Government spending on infrastructure spurred private investment in retail, construction and property.
“The government moved towards infrastructure with Jebel Ali, the Dubai Port, the World Trade Centre,” said Mr Mohamed. “Many things started to be made by the Dubai government, which encouraged the people to spend money.”
Car dealerships were especially popular, even before paved roads. Landscapes transformed overnight.
British companies laid roads as Dubai slept.
“In the morning, you’d look out and find black carpets,” said Mr Mohamed. "Sand became black.”
The impact of unification
Unification, known as ittihad in Arabic, opened Abu Dhabi to other emirates.
“The people in Dubai, Sharjah, Ras Al Khaimah and Ajman, they were much closer together than Abu Dhabi,” said Mr Zakaria. “From the beginning, it was almost like one country, people went here and there. Except for Abu Dhabi, of course. If you didn’t have an Abu Dhabi [permit] you would never enter Abu Dhabi.”
Prior to unification, it had been difficult for people to cross into Abu Dhabi without a permit and setting up business in the capital required a sponsor or partner from Abu Dhabi. In contrast, free movement and business between Dubai and the Northern Emirates was common. With unification, Abu Dhabi became more integrated with the other emirates and it experienced a flush of investment from the future capital.
“After ittihad, people were very happy because so many jobs came,” said Mr Zakaria. “The education in the Northern Emirates was much more advanced than anywhere else. This is a fact. So people who had good education found opportunities in Abu Dhabi. Maybe more than 40 per cent of its workers were from Sharjah, Ajman, Ras Al Khaimah.” Mahmoud left Dubai in 1963, after his employer passed away.
But his Cairo friends, now Emiratis themselves, have never looked back.
______________
Sheikh Zayed and the story of a nation
%3Cp%3EThe%20Department%20of%20Culture%20and%20Tourism%20-%20Abu%20Dhabi%E2%80%99s%20Arabic%20Language%20Centre%20will%20mark%20International%20Women%E2%80%99s%20Day%20at%20the%20Bologna%20Children's%20Book%20Fair%20with%20the%20Abu%20Dhabi%20Translation%20Conference.%20Prolific%20Emirati%20author%20Noora%20Al%20Shammari%2C%20who%20has%20written%20eight%20books%20that%20%20feature%20in%20the%20Ministry%20of%20Education's%20curriculum%2C%20will%20appear%20in%20a%20session%20on%20Wednesday%20to%20discuss%20the%20challenges%20women%20face%20in%20getting%20their%20works%20translated.%3C%2Fp%3E%0A
Profile of Hala Insurance
Date Started: September 2018
Founders: Walid and Karim Dib
Based: Abu Dhabi
Employees: Nine
Amount raised: $1.2 million
Funders: Oman Technology Fund, AB Accelerator, 500 Startups, private backers
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
It Was Just an Accident
Director: Jafar Panahi
Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr
Rating: 4/5
'My Son'
Director: Christian Carion
Starring: James McAvoy, Claire Foy, Tom Cullen, Gary Lewis
Rating: 2/5
Company%20profile
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20JustClean%3Cbr%3E%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%20with%20offices%20in%20other%20GCC%20countries%3Cbr%3E%3Cbr%3E%3Cstrong%3ELaunch%20year%3A%3C%2Fstrong%3E%202016%3Cbr%3E%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%20160%2B%20with%2021%20nationalities%20in%20eight%20cities%3Cbr%3E%3Cstrong%3E%3Cbr%3ESector%3A%3C%2Fstrong%3E%20online%20laundry%20and%20cleaning%20services%3Cbr%3E%3Cbr%3E%3Cstrong%3EFunding%3A%20%3C%2Fstrong%3E%2430m%20from%20Kuwait-based%20Faith%20Capital%20Holding%20and%20Gulf%20Investment%20Corporation%3C%2Fp%3E%0A
The bio:
Favourite film:
Declan: It was The Commitments but now it’s Bohemian Rhapsody.
Heidi: The Long Kiss Goodnight.
Favourite holiday destination:
Declan: Las Vegas but I also love getting home to Ireland and seeing everyone back home.
Heidi: Australia but my dream destination would be to go to Cuba.
Favourite pastime:
Declan: I love brunching and socializing. Just basically having the craic.
Heidi: Paddleboarding and swimming.
Personal motto:
Declan: Take chances.
Heidi: Live, love, laugh and have no regrets.
Tenet
Director: Christopher Nolan
Stars: John David Washington, Robert Pattinson, Elizabeth Debicki, Dimple Kapadia, Michael Caine, Kenneth Branagh
Rating: 5/5
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.”
LIVERPOOL%20TOP%20SCORERS
%3Cp%3E(Premier%20League%20only)%3Cbr%3EMohamed%20Salah%20129%3Cbr%3ERobbie%20Fowler%20128%3Cbr%3ESteven%20Gerrard%20120%3Cbr%3EMichael%20Owen%20118%3Cbr%3ESadio%20Mane%2090%3Cbr%3E%3C%2Fp%3E%0A
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
How to keep control of your emotions
If your investment decisions are being dictated by emotions such as fear, greed, hope, frustration and boredom, it is time for a rethink, Chris Beauchamp, chief market analyst at online trading platform IG, says.
Greed
Greedy investors trade beyond their means, open more positions than usual or hold on to positions too long to chase an even greater gain. “All too often, they incur a heavy loss and may even wipe out the profit already made.
Tip: Ignore the short-term hype, noise and froth and invest for the long-term plan, based on sound fundamentals.
Fear
The risk of making a loss can cloud decision-making. “This can cause you to close out a position too early, or miss out on a profit by being too afraid to open a trade,” he says.
Tip: Start with a plan, and stick to it. For added security, consider placing stops to reduce any losses and limits to lock in profits.
Hope
While all traders need hope to start trading, excessive optimism can backfire. Too many traders hold on to a losing trade because they believe that it will reverse its trend and become profitable.
Tip: Set realistic goals. Be happy with what you have earned, rather than frustrated by what you could have earned.
Frustration
Traders can get annoyed when the markets have behaved in unexpected ways and generates losses or fails to deliver anticipated gains.
Tip: Accept in advance that asset price movements are completely unpredictable and you will suffer losses at some point. These can be managed, say, by attaching stops and limits to your trades.
Boredom
Too many investors buy and sell because they want something to do. They are trading as entertainment, rather than in the hope of making money. As well as making bad decisions, the extra dealing charges eat into returns.
Tip: Open an online demo account and get your thrills without risking real money.