Alia Salem and Maitha Hamdan, who both study media at Dubai Women's College.
Alia Salem and Maitha Hamdan, who both study media at Dubai Women's College.

Splashing out can lead to divorce



DUBAI // When Omran al Redwan decided to get married four years ago, he braced himself for the high costs associated with a wedding, including a dowry for his wife-to-be. But, soon after getting engaged, his fiancée informed him that she did not require a mahhar, or dowry. "I thought she was so kind and that I have to take care of her for the rest of her life," said Mr al Redwan, a 27-year-old banker from Sharjah. "Now, anything she wants, I will pay for her. But, she doesn't take anything she doesn't need and I just think about her happiness."

Mr al Redwan knows that his experience is not the norm and said excessive amounts spent on weddings, including dowries, were putting immense pressure on young couples beginning their married life. "I know a lot of stories of men who have too much debt on their backs and they had many fights because of this," he said. Maitha Hamdan, a film student at Dubai Women's College, recently tackled the issue in a short documentary, The Dowry, that was screened at the Gulf Film Festival. Miss Hamdan, 22, described her understanding of a dowry as a "present for the bride from the groom".

"But, the money can cause a lot of conflict, which can even lead to people getting divorced," she said. "The average guy is taking a loan to cover the cost." Some of the women in Miss Hamdan's film questioned their worth if a man was able to pay tens of thousands of dirhams for a car, but not for her dowry. "There is an idea that is spreading in our society that everything is perfect and people like to show off, but it's all on credit," Miss Hamdan said. "Sometimes they don't even have Dh1 to show for themselves. It's out of control."

Dowries here can include an amount specifically for the bride, as well as money to cover some of the wedding costs. Hessa Mohammed, 23, from Dubai, was given Dh100,000 (US$27,000) when she got married. The amount included the cost of her make-up, hairstyling and wedding dress, she said. "This is a normal amount," she said. "Some people ask for more, because everything is so expensive." The make-up for her wedding cost Dh3,000 and her hairstylist charged Dh2,000. Two years on, her husband is still paying back the loan he took to cover the wedding costs.

"We have a child now, so we are trying to manage the costs," she said. According to Rashid al Mazroui, a 25-year-old government employee from Sharjah, his wife's family did not ask for a large sum when he got married two years ago. "I gave Dh40,000, which, compared to others, is very low," he said. Mr al Mazroui believes the average to be around Dh100,000 to Dh150,000. "Not everyone has this budget, so they are forced to take loans," he said.

Bader al Awadhi, 25, from Ajman, is yet to tie the knot, but experienced the dowry debate when his brother got married and the amount was set at Dh150,000. "In our family, we help each other, so we all contributed so that he didn't go into debt," he said. "This amount is nothing. We've all heard of amounts reaching around Dh1 million." When he does get married, Mr al Awadhi, 25, expects to give around the same amount as his brother.

"But if I was in love with someone, I would try to do whatever it took," he said. Alia Salem, a 19-year-old university student from Dubai, who is yet to be married, said she would expect a dowry of around Dh100,000. "But, for me, the most important thing is to find a good man, who should be committed to being a good father and husband," she said. "He should be religious, kind, gentle and funny - not a playboy." @Email:zconstantine@thenational.ae

Defined benefit and defined contribution schemes explained

Defined Benefit Plan (DB)

A defined benefit plan is where the benefit is defined by a formula, typically length of service to and salary at date of leaving.

Defined Contribution Plan (DC) 

A defined contribution plan is where the benefit depends on the amount of money put into the plan for an employee, and how much investment return is earned on those contributions.

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Round 1: Beat Leolia Jeanjean 6-1, 6-2
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Round 3: Beat Marie Bouzkova 6-4, 6-2
Round 4: Beat Anastasia Potapova 6-0, 6-0
Quarter-final: Beat Marketa Vondrousova 6-0, 6-2
Semi-final: Beat Coco Gauff 6-2, 6-4
Final: Beat Jasmine Paolini 6-2, 6-2

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Manchester United 50 appearances, 5 goals

Borussia Dortmund (loan) 6 appearances, 0 goals

Sunderland (loan) 25 appearances, 0 goals

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The specs

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SPECS

Nissan 370z Nismo

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Company Profile

Company name: Cargoz
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Founders: Premlal Pullisserry and Lijo Antony
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Greg Lukianoff and Jonathan Haidt, Penguin Randomhouse

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TWISTERS

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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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