Most weddings feature a stage on which the bride sits. Big-budget affairs may also include a catwalk for her to show off her dress. Randi Sokoloff / The National
Most weddings feature a stage on which the bride sits. Big-budget affairs may also include a catwalk for her to show off her dress. Randi Sokoloff / The National

UAE weddings: trend of big-budget days may be changing



A recent plea by the Sharjah Marriage Fund for restraint in the cost of weddings has highlighted just how much some Emirati families are prepared to spend on the big day. But that trend may be changing, report Mitya Underwood and Bushra Al Hashemi

"There was one wedding where the bride wanted to come down on ropes," laughs the Emirati wedding planner Omar Al Mulla.

"And in another, the family wanted all the best decoration and table arrangements so they spent Dh4.5 million. Families want everything in weddings."

But with bills sometimes running into millions of dirhams, it is clear that "everything" doesn't come cheap.

This week the Sharjah Wedding Fund appealed to couples in the emirate to rein in their spending to avoid starting married life burdened with debt.

The fund wants to cut the number of Dh70,000 loans it issues, many of which go to Emiratis who earn only Dh20,000 a month.

"Of course there are people that will spend everything and there are other people that will spend less," Mr Al Mulla says. "I deal with more normal people."

The costs of the weddings are usually dictated by the families, he says, with couples having very little say about how much they can spend. Traditional elements also continue to put pressure on both families to dig deep.

The bride's dowry usually costs between Dh100,000 and Dh200,000, depending on the families.

Traditionally this includes a zehba - a collection of everyday items such as clothing, shoes, underwear, shirts, abayas, handbags and toiletries - but nowadays brides prefer to get the money and do her own shopping.

Families usually work together to agree on the dowry but sometimes a match can fall apart if they fail. Friends may be called in to discuss the nitty-gritty details so no one in the family loses face.

Less traditional elements pushing up the bill include Arab singers, although as the price of a two-hour show runs to Dh550,000, they are usually only found at weddings in the wealthiest families.

"Only the rich people get these," Mr Al Mulla says. "This is a new thing, not traditional, but it is popular with many people."

Mariam Al Muhairbi, a young Emirati in Abu Dhabi, thinks some wedding price tags are unjustifiably high and the true meaning of marriage is at risk of being forgotten.

"I don't think this is good. What's the point?" Ms Al Muhairbi asks. "Weddings have become more of a show and I recommend the simpler weddings.

"We've noticed that in simpler weddings there is more happiness in the marriage and whenever they are too extravagant, they can divorce soon after the wedding.

"And now divorce has increased because of fewer blessings. The Prophet Mohammed said the best of marriage is the simplest."

Ms Al Muhairbi says that when two of her male cousins were married, their brides were each given Dh200,000 in cash from the grooms' family. Dh20,000 was for the dowry and the rest to fund a new wardrobe, perfumes, accessories and beauty products.

The cousins, who married sisters, held their wedding on the same night to try to bring down other costs. This is encouraged by the Government to help ease the burden on some families.

"We did the wedding at the InterContinental Hotel because the ballroom in another hotel was Dh70,000 just for the space, and the staff who serve drinks, sweets and medkam - the Arabic perfume - would cost an additional Dh70,000," Ms Al Muhairbi says.

The Sharjah fund, which is urging couples to show restraint when planning their wedding, says it has organised 10 mass weddings this year, with another 60 couples to be married before Ramadan.

Last year Dubai Courts honoured an Emirati couple who paid for the cost of raising two orphans as a dowry, and another couple was honoured for having a token Dh1 dowry.

Most weddings feature a stage on which the bride sits. Big-budget affairs may also include a catwalk for her to show off her dress.

Then there is the bill for decorations, which often hundreds of thousands of dirhams because of expensive touches like imported flowers.

And as more weddings, particularly in Abu Dhabi and Dubai, are held in hotels rather than private homes, more money is spent on food and staff. Many hotels also have minimum requirement on guest numbers, running into the hundreds.

The costs are, of course, lower in other parts of the country. In Ras Al Khaimah, wedding halls can charge from Dh54,000 for 700 guests.

Even so, wedding costs in the Northern Emirates have also increased as Emirati weddings grow to incorporate other traditions.

Moroccan sweets and chocolate cake are served with the traditional dessert of Omani halwa, while a white European wedding dress is expected to accompany the traditional gold jewellery.

Even at traditional weddings high in the mountains, baked lobster may served alongside biryani cooked in open pits.

Contemporary Emirati weddings reflect a taste for the cosmopolitan and the luxurious.

Basma Al Fahim, the founder of Eventra Events, says over the past five years or so the costs of weddings in Abu Dhabi has been dropping, albeit from a higher cost initially.

"In the past, maybe seven years ago, people would have weddings in Abu Dhabi that would cost around Dh1 million," says the Emirati businesswoman. "About three years ago it went down to between Dh700,000 and Dh500,000.

"I've noticed prices are very different depending on where people are. It's different between Abu Dhabi and Dubai and Sharjah, for example."

The tradition of inviting hundreds of people, some of whom have never met the bride or groom, is also slowly eroding, Ms Al Fahim says, as couples try to reduce the costs.

"In general, people are more price conscious and they are starting not to want to invite people that they don't really know," she says.

"In general, everybody doesn't want to spend so much on weddings. As an individual I think it's a good thing, even though it is less work for my business."

One of the complaints from Emiratis is the lack of large, affordable centres in which they can hold their ceremonies.

Mariam, who is in her mid 20s, was married last month in a lavish ceremony that cost a little more than Dh400,000.

"The problem is from the hotels," Mariam says. "We found that the minimum number of guests was 400 and that makes it expensive.

She says one of the few venues on Abu Dhabi Island is Al Mushrif ballroom, which is supported by the Government.

"I was given a budget by my husband and I stuck to it," Mariam says. "I think it is nonsense that anybody would try to take money from banks and add it to a budget.

"We need more large wedding tents so people don't have to drive outside of Abu Dhabi to hotels, or be in expensive hotels. The extravagance is only for one night.

"There is a saying that someone should only stretch their legs as far as the blankets will cover them, not further. This applies here."

* Additional reporting by Anna Zacharias

Our family matters legal consultant

Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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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