Many expats have lost tens of thousands of dirhams after being mis-sold pension plans by rogue individuals presenting themselves out as Independent Financial Advisors.
One of those is Robert, a British lawyer who moved to Dubai 11 years ago. He asked that his surname not be used.
He opened a regular savings plan ten years ago, but claims a large chunk of his cash was swallowed up in hidden fees and ‘leakage’ costs, unknown to him at the time of signing up.
Robert was sold a life assurance product from that looked good on paper, but has produced very little in the way of saving for his retirement.
“I was targeted by a smooth talking silver tongued IFA,” he said.
“He was quick out of the blocks to show my projected returns if I saved on a monthly basis and committed to a 25 year term."
“What he did not discuss were the substantial costs and fees involved with the product which would eat away at any future potential saving returns of the underlying funds I chose to invest in through the platform.”
Robert decided to contribute Dh3,500 every month for 25 years. But the last ten years, he has seen a 'leakage' from his savings plan of approximately Dh75,000 - a combination of annual transaction fees, administration fees and investment fees averaging about 5 per cent on Robert’s annual contributions.
Commissions paid to IFA’s to sell saving plans, and paid directly by the plan’s sponsors upfront, are believed to be in the region of Dh45,000.
Since taking out the savings plan a decade ago, Robert has paid in more than Dh420,000, but the market value of the plan is now just Dh415,500.
“No sooner had I signed on the dotted line, the IFA disappeared from sight,” Robert added.
“By telling my story, hopefully I’ll be able to deter the unknowing and unsuspecting expat caught in the nets of calculating IFAs who are peddling a commission driven savings product which benefits the IFA and the saving plan’s sponsor - but not the investor."
“Expats should be aware of the hidden costs which may seem low at 3 - 5 per cent, but which have a huge impact on the performance of their savings."
The National in Davos
We are bringing you the inside story from the World Economic Forum's Annual Meeting in Davos, a gathering of hundreds of world leaders, top executives and billionaires.
The specs: 2018 Chevrolet Trailblazer
Price, base / as tested Dh99,000 / Dh132,000
Engine 3.6L V6
Transmission: Six-speed automatic
Power 275hp @ 6,000rpm
Torque 350Nm @ 3,700rpm
Fuel economy combined 12.2L / 100km
Ipaf in numbers
Established: 2008
Prize money: $50,000 (Dh183,650) for winners and $10,000 for those on the shortlist.
Winning novels: 13
Shortlisted novels: 66
Longlisted novels: 111
Total number of novels submitted: 1,780
Novels translated internationally: 66
You Were Never Really Here
Director: Lynne Ramsay
Starring: Joaquim Phoenix, Ekaterina Samsonov
Four stars
TWISTERS
Director:+Lee+Isaac+Chung
Starring:+Glen+Powell,+Daisy+Edgar-Jones,+Anthony+Ramos
Rating:+2.5/5
US federal gun reform since Sandy Hook
- April 17, 2013: A bipartisan-drafted bill to expand background checks and ban assault weapons fails in the Senate.
- July 2015: Bill to require background checks for all gun sales is introduced in House of Representatives. It is not brought to a vote.
- June 12, 2016: Orlando shooting. Barack Obama calls on Congress to renew law prohibiting sale of assault-style weapons and high-capacity magazines.
- October 1, 2017: Las Vegas shooting. US lawmakers call for banning bump-fire stocks, and some renew call for assault weapons ban.
- February 14, 2018: Seventeen pupils are killed and 17 are wounded during a mass shooting in Parkland, Florida.
- December 18, 2018: Donald Trump announces a ban on bump-fire stocks.
- August 2019: US House passes law expanding background checks. It is not brought to a vote in the Senate.
- April 11, 2022: Joe Biden announces measures to crack down on hard-to-trace 'ghost guns'.
- May 24, 2022: Nineteen children and two teachers are killed at an elementary school in Uvalde, Texas.
- June 25, 2022: Joe Biden signs into law the first federal gun-control bill in decades.
Women & Power: A Manifesto
Mary Beard
Profile Books and London Review of Books
COMPANY PROFILE
Company name: Alaan
Started: 2021
Based: Dubai
Founders: Parthi Duraisamy and Karun Kurien
Sector: FinTech
Investment stage: $7 million raised in total — $2.5 million in a seed round and $4.5 million in a pre-series A round
COMPANY PROFILE
Name: PlanRadar
Started: 2013
Co-founders: Ibrahim Imam, Sander van de Rijdt, Constantin Köck, Clemens Hammerl, Domagoj Dolinsek
Based: Vienna, Austria
Sector: Construction and real estate
Current number of staff: 400+
Investment stage: Series B
Investors: Headline, Berliner Volksbank Ventures, aws Gründerfonds, Cavalry Ventures, Proptech1, Russmedia, GR Capital
The biog
Place of birth: Kalba
Family: Mother of eight children and has 10 grandchildren
Favourite traditional dish: Al Harees, a slow cooked porridge-like dish made from boiled cracked or coarsely ground wheat mixed with meat or chicken
Favourite book: My early life by Sheikh Dr Sultan bin Muhammad Al Qasimi, the Ruler of Sharjah
Favourite quote: By Sheikh Zayed, the UAE's Founding Father, “Those who have no past will have no present or future.”
Company Profile
Company name: Namara
Started: June 2022
Founder: Mohammed Alnamara
Based: Dubai
Sector: Microfinance
Current number of staff: 16
Investment stage: Series A
Investors: Family offices
COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The schedule
December 5 - 23: Shooting competition, Al Dhafra Shooting Club
December 9 - 24: Handicrafts competition, from 4pm until 10pm, Heritage Souq
December 11 - 20: Dates competition, from 4pm
December 12 - 20: Sour milk competition
December 13: Falcon beauty competition
December 14 and 20: Saluki races
December 15: Arabian horse races, from 4pm
December 16 - 19: Falconry competition
December 18: Camel milk competition, from 7.30 - 9.30 am
December 20 and 21: Sheep beauty competition, from 10am
December 22: The best herd of 30 camels