Shops given three month deadline to check signs


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ABU DHABI // Shop owners have been given a three-month deadline to comply with new commercial signage regulations that will lead to smaller, more standardised signs across the emirate.

The regulations, which went into effect last month, will determine the size and type of sign allowed on the capital's storefronts, as well as the position on buildings. Business owners will have three months from the date of their licence renewal to comply with the law, from today in Al Ain and April 15 in Al Gharbia. When the law was first announced, the Urban Planning Council (UPC) said owners would have one year to comply.

"The main objective of the signage is to make sure the cities are good-looking," said Fahim Al Shehhi, the director of the commercial licence division at the Department of Economic Development (DED), which is overseeing compliance.

"Some signs are too big or the wrong material. All of the buildings must be uniform."

Inspectors will visit businesses to ensure they meet the requirements within three months, but Mr Al Shehhi said the DED did not intend to fine owners who did not comply. Business licences will not be renewed unless the signage meets specifications, however.

"Penalties are the last thing we want to do," Mr Al Shehhi said. "The main thing is to work with the customers and inform them of the new processes and procedures."

The DED and the UPC have conducted workshops with more than 70 signmakers and have plans to distribute 200,000 copies of the guidelines.

Signs will no longer be allowed to cover any integral architectural element of a structure or protrude more than 25 centimetres from a building. Ground-level businesses cannot have signs taller than one metre, and sign location, height and position must be consistent with other signage on the same structure.

The regulations also went into effect in Mussaffah, Shahamah and Al Wathba on April 1.

Signage will be replaced at the owner's expense, a price some shop owners estimated could exceed Dh5,000.

But Mr Al Shehhi said prices will remain competitive, because all signmakers will offer the same materials and designs.

"It will remain within everyone's budget," he said.

The authority issued 2,115 permits last year for signboards, billboards and banners. About 100 businesses have already complied with the new regulations.

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.”

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