On location: Central Market, Al Ain. It's an oasis of green in the city, and shopkeepers say business is improving, but the place is still a well kept secret. Ola Salem reports, with photos by Delores Johnson
Outside the plant stores in the Central Market in Al Ain, Afghan, Pakistani and Indian "gardeners" stand silently, waiting for customers.
Business has risen steadily in the three years since the market opened, the shopkeepers say, but add that they are still unable to make a decent profit.
"We come from Fajr to Maghrib," says Baz, an Indian, referring to Muslim prayer times. "There are customers, but little."
At 8.45am, the sound of an approaching car echoes through the market. The shopkeepers raise their hands in unison, signalling to the driver of the white Lexus that theirs is the shop to visit.
But the driver dismisses the invitations and speeds past, and the workers go back to what was occupying them earlier.
An elderly woman walks around the flower and plant stores, looking for Lebanese lilies.
Baz acts fast. He brings out a lily. It's Lebanese, he says, but the woman is suspicious. She asks for a Syrian plant instead; he brings out a flower identical to the first.
Next door, MG, a Jordanian, is dying to tell the women she is being duped. He hesitates.
"I am a biology graduate," says MG once she is out of earshot. "I know these plants; all the other Asian workers don't know anything at all.
"We are meant to all be gardeners - this is a plantation, not a supermarket. We are meant to produce our own plants and sell them here."
The excitement he felt a year ago, when he was starting his own business, has long dissipated, he says. He was told before he set up shop that this centre was to be the only place in the city to go for plants; the rest of the stores would be closed or relocated to the Central Market. That has yet to happen.
"People prefer to go there," he says, referring to other locations in the city where one can buy plants and flowers, places that are more centrally located.
"Here, like you can see, we are far." He is struggling financially, getting by only through other sources of income.
"Hamdulillah, I am better than the other stores, I have other sources of income, but others had to close," he says.
"I pay Dh40,000 per year for rent for this place, and the profit is not supporting our expenses. We even have to pay for water and electricity, so expenses are very high in summer."
For five months during the summer the market is dead, devoid of customers.
"From the end of May until September no one is here," says Hamed, an Afghan who works in one of the flower stores.
Not only does the heat dissuade shoppers, he says; it also turns watering and tending the plants into a chore.
MG's shop, at the far end of the row of 60 shops, is the only one that also sells birds, paving materials and garden ornaments in addition to plants, trees and shrubs.
"I want people to see this and imagine their own garden," he says. "If a person has just purchased a house for Dh4 million and doesn't know what to do with his garden, we want to give him the idea."
He excuses himself to greet an Emirati customer who says he is looking for fruit trees.
Typical, MG says later. Emiratis always look for fruit trees, western expatriates prefer indoor plants, and Arab expatriates take ornaments.
"Abu Dhabi plantations are doing much better," he says. "There are more westerners who care about these plants and flowers more."
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Zakat: an Arabic word meaning ‘to cleanse’ or ‘purification’.
Nisab: the minimum amount that a Muslim must have before being obliged to pay zakat. Traditionally, the nisab threshold was 87.48 grams of gold, or 612.36 grams of silver. The monetary value of the nisab therefore varies by current prices and currencies.
Zakat Al Mal: the ‘cleansing’ of wealth, as one of the five pillars of Islam; a spiritual duty for all Muslims meeting the ‘nisab’ wealth criteria in a lunar year, to pay 2.5 per cent of their wealth in alms to the deserving and needy.
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16 Indoor cricket matches are 16 overs per side
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9 There have been nine Indoor Cricket World Cups for men. Australia have won every one.
5 Five runs are deducted from the score when a wickets falls
4 Batsmen bat in pairs, facing four overs per partnership
Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.
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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.”