Revealed: the dark secrets of Room 1504



ABU DHABI // George Ibrahim, the general manager of the Sahara Hotel Apartments on Electra Street, had no idea what was going on inside room 1504. Nor did Albert Matta, the owner. "I have more than 1,000 flats in Abu Dhabi," says Mr Matta. "I did not know what was happening."

The room was part of the seedy underbelly of Abu Dhabi. It was the centre of a human trafficking ring; a brothel where dozens of women were forced to work as prostitutes. The room was registered by AA, a 31-year-old Egyptian man found guilty at Abu Dhabi's Criminal Court of First Instance last month of running a brothel. In this, he was aided by three women, two of whom, a mother and daughter identified in court papers released yesterday as DT and ND, would travel to their native Russia in search of young women to exploit.

The new recruits would be promised jobs and prosperity in Abu Dhabi. When they arrived, the pair would confiscate their passports. The girls would then be passed on to an Uzbek woman, LB, who would tell them that she had purchased them and they would have to sell sex to escape the debt. Their needs would be looked after by AA; he was also the man who took the money paid by their clients, passing some of it back to LB.

It is not known how many girls suffered this fate, but when police searched DT's flat they found 14 different passports, all of them believed to belong to women the Russians had recruited. All three women were found guilty of running a prostitution ring and, like AA, sentenced to three years followed by deportation. AA and DT have appealed; ND and LB were sentenced in absentia. They remain on the run and are believed to have fled the country.

While it is unclear in the court documents how the operation was initially exposed, two key witnesses in the trial were also victims who came forward with the details. They are currently taking refuge in a shelter in Abu Dhabi. VP, 21, from Russia, told the court she met DT in her home country, where she was told of job opportunities in the UAE. After arriving in August 2008, she met LB, who said she had bought VP for Dh40,000 (US$10,900). The only way to pay this off, the woman told VP, would be to work as a prostitute.

The victim, said LB, threatened her family, claiming that she had friends in the Russian intelligence services. A forensic examination revealed that VP was suffering from a sexually transmitted disease, which she may have passed on to her clients. While the three accused women were intoxicated, VP fled the brothel. She later met a friend who drove her to an Orthodox church. The second victim, JS, testified that she was lured into the UAE on the promise of a job as a waitress.

When she arrived, she was told that she, too, had been bought, this time for Dh45,000, and that she, too, would have to work as a prostitute to pay it off. She said her family was threatened if she did not comply. When the police arrived at room 1504, JS opened the door - a fact that the court took as evidence that she could have escaped earlier if she had wanted. It ruled that both victims had willingly worked as prostitutes in the Sahara Hotel Apartments, as well as at flats in Sharjah and elsewhere in Abu Dhabi. The court also found no evidence that the threat to the women's families had been genuine.

Mr Matta, meanwhile, now says he will keep a closer eye on what goes on in his hotels. "All that I care about now is that my management was not apart of it," he said. "We are supervising the guests more so than before. We sent out memos asking all the staff to be more vigilant with who goes in and out. We are taking greater measures with 24-hour surveillance." Mr Ibrahim, meanwhile, suffered the indignity of arrest and trial, spending 57 days in prison before being acquitted because of lack of evidence.

He remains philosophical about the episode, however. "I lost these days from my life," he said, "but now I am back with my family and happy to move on." @Email:myoussef@thenational.ae kshaheen@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.”

Dust and sand storms compared

Sand storm

  • Particle size: Larger, heavier sand grains
  • Visibility: Often dramatic with thick "walls" of sand
  • Duration: Short-lived, typically localised
  • Travel distance: Limited 
  • Source: Open desert areas with strong winds

Dust storm

  • Particle size: Much finer, lightweight particles
  • Visibility: Hazy skies but less intense
  • Duration: Can linger for days
  • Travel distance: Long-range, up to thousands of kilometres
  • Source: Can be carried from distant regions