Emirati Laila Ali, 26, of Dubai, enjoys her job as a baker in the Al Mizhar area store in Dubai. Amy Leang / The National
Emirati Laila Ali, 26, of Dubai, enjoys her job as a baker in the Al Mizhar area store in Dubai. Amy Leang / The National
Emirati Laila Ali, 26, of Dubai, enjoys her job as a baker in the Al Mizhar area store in Dubai. Amy Leang / The National
Emirati Laila Ali, 26, of Dubai, enjoys her job as a baker in the Al Mizhar area store in Dubai. Amy Leang / The National

The UAE supermarket with national interest in job creation for Emiratis


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What does it take to run a successful private company that includes a healthy proportion of Emiratis in its workforce?

One of the most successful is the Dubai supermarket chain Aswaaq, which has targeted the hiring of UAE nationals since it was set up in 2007.

Aswaaq was singled out by Sheikh Mohammed bin Rashid, Vice President and the Ruler of Dubai, as an example of a company that supports the local community by providing job opportunities.

While it brought in overseas consultants when setting up, it now has an Emirati board of directors and has hired many nationals to work in its seven supermarkets in the city.

Many of the stores are based in districts with a high proportion of citizens, such as Al Mizhar, Al Warqa and Nadd Al Hamar.

Shamsa Lootah, the human resources manager at Aswaaq, says hiring nationals has “raised awareness of the importance of the proliferating retail sector” among local workers.

Ms Lootah admits the idea of working in a supermarket does not appeal to many Emiratis.

“The stereotypes entrenched in the minds of many Emiratis cause them to look down on jobs in retail,” she says.

“We came across many jobseekers who refused to work in retail and we made great efforts to raise awareness about the importance of having Emiratis working in this sector through a number of visits to various colleges and universities.

“Many Emiratis [now] consider a job in retail as a stepping stone to better opportunities at the international level after they have acquired some experience.”

Salaries are another problem, Ms Lootah says. “Many Emiratis who apply to work for us expect to receive the same salaries offered in the public sector,” she says.

“As everybody knows, this is not possible because the work of private companies is based on the principle of profit and loss, and wages are determined according to labour-market needs.”

But what Aswaaq has is a full-time programme that trains workers in all facets of retail, from customer satisfaction, receiving deliveries and stocking shelves, to more senior management roles.

At present the company has about one in five positions filled by Emiratis at its headquarters and hopes to increase this as it expands.

“Emiratisation is our priority,” Ms Lootah says. “Supporting the local community in all possible sectors is one of our goals, and it is also part of the social responsibility of the company.

“We at Aswaaq also believe that it is important for Emiratis to engage in the public sector and in the private sector as well.”

Aswaaq has fully Emiratised its senior management and is now pushing to widen this to other areas of the company, which it admits is more of a challenge.

One initiative allows students to come to the company to complete projects, giving them an inside view of the retail sector.

Fatima Al Shaibani, head of marketing and communications, says that after five years at Aswaq, she is confident that “Emiratis have the opportunity to show their potential and prove their competence.”

She adds: “Their interaction with other employees from different nationalities helps them increase their competitiveness and raise their productivity.

“There is a good relationship between management and staff and this motivates employees to do their very best.”

Ms Al Shaibani joined the company as a graphic designer but has since been promoted.

“I believe that my work in the retail sector is a challenge for me, especially in that it is a new field in which we do not find many Emiratis,” she says. “Working in the retail sector is as important as working in other fields and it provides great development opportunities.”

Fuad Al Najjar is a senior asset director with Al Futtaim Group, with responsibilities for shopping centres including Deira City Centre, Ajman City Centre, Fujairah City Centre and one in Bahrain.

The group, Mr Al Najjar says, strictly follows the Emiratisation policy endorsed by the company’s chairman and founder, Majid Al Futtaim.

“We try to hire people from the countries where we run our businesses, especially in commercial centres,” he says.

“I can say that we are committed to Emiratise all positions, especially leadership posts, by offering good packages and motivating all Emiratis to join our group.

“We have managed to Emiratise many areas of our business, like the shop-leasing department, the shop-design department and the finance, marketing and HR departments, in addition to project management and development.

“We have managed to alter the idea entrenched in Emirati consciousness about the private sector by providing our Emirati staff with high-quality training and giving them the prerogatives that help them do their jobs properly.

“I should also say that we attract Emirati staff because we provide them with the opportunity to advance their careers.”

Mr Al Najjar prefers to regard the task of persuading more citizens into the private sector as a challenge, rather than a problem.

“The main challenge that hampers our Emiratisation policy is the reconciliation between opportunities and wishes, in the sense that we offer many job opportunities to Emiratis, but they seem not to be willing to join us and work hard to reach high positions,” he says.

“Although we managed to interview many Emirati nationals and recruit some of them, we still cannot convince them to work in the private sector where the personnel are sometimes required to work for many hours, respect time and develop individual skills.”

In the end, he says, both the private and public sector have advantages and disadvantages.

“But I still believe that working in the private sector is better than working elsewhere, because it gives one the opportunity to advance one’s career more rapidly.”

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.”

MATCH DETAILS

Chelsea 4 

Jorginho (4 pen, 71 pen), Azpilicueta (63), James (74)

Ajax 4

Abraham (2 og), Promes (20). Kepa (35 og), van de Beek (55) 

The years Ramadan fell in May

1987

1954

1921

1888

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The specs

Engine: 5.2-litre V10

Power: 640hp at 8,000rpm

Torque: 565Nm at 6,500rpm

Transmission: 7-speed dual-clutch auto

Price: From Dh1 million

On sale: Q3 or Q4 2022 

Israel Palestine on Swedish TV 1958-1989

Director: Goran Hugo Olsson

Rating: 5/5