As I read earlier this month that the Prime Minister, Sheikh Mohammed bin Rashid, had announced the development of a unified corporate identity for the country as part of Vision 2021, I was pleased. It speaks volumes that the word development was used instead of "strengthening", which would infer that a common brand already existed.
In fact, individual emirates have all too frequently had their separate identities promoted abroad in the past decade. Some people may regard this as acceptable - I would like to assure them that among nationals, acceptable is the farthest thing from the truth when the fragmentation of the country is portrayed in the media.
There are already corporate symbols of unity that Emiratis regard with pride. The first that comes to mind is without a doubt Etihad (or Union) Airlines, the award-winning carrier. Of course, Emirates Airlines, which bears the federation's name, is also an important global ambassador of the national brand. Back home, one looks towards the Emirates Palace in Abu Dhabi and the towers in Dubai.
On the other hand, there are examples of Emirati corporate branding that have favoured highlighting individual emirates over co-branding. Abu Dhabi, Dubai, Sharjah and Ajman have all launched global tourism campaigns featured on CNN, BBC and other television networks with one common factor: they all unashamedly neglect to mention the name of the United Arab Emirates.
By contrast, the now-acclaimed Incredible India campaign, conceptualised in 2002, understands that country's history, symbolism and the message that should be portrayed. The campaign was so successful it managed to increase high-end tourism to India by 16 per cent in its first year and today is a case study of tourism marketing. When cities or regions promote themselves individually, like Kerala, Goa or Uttar Pradesh, Incredible India always appears in the background to build Brand India.
The same goes for Malaysia's Truly Asia campaign, which markets the federation as a single destination. Even when one of the states promotes itself individually, the phrase "Malaysia Truly Asia" appears clearly in the background. Frankly, I have no doubt that if Emiratis were responsible for the UAE's tourism campaigns we see on television, the name of the country would have appeared.
The truth is, in order for us to project a unified single identity, we need to start reflecting it in ourselves first. Until Emiratis start taking this matter seriously, our fragmented branding will continue to remain the victim of global marketing agencies.
It is no surprise that a unified corporate identity for the UAE is not marketed abroad. While the UAE prides itself as an early member of the World Trade Organisation, it is not a member of the other WTO, the World Tourism Organisation. In fact, many are unaware that the UAE does not qualify to be a member of this global tourism body for the simple, and some may think absurd, fact that we do not have a federal ministry of tourism. As I highlighted in a previous column in The National about the Federal National Council (FNC), in April 2007 a draft law was sent to the FNC by the Ministerial Cabinet on establishing a National Council for Tourism and Antiquities, effectively a tourism ministry. Almost three years later, we have yet to hear from the FNC about it.
But why does a country that is about to enter its fifth decade in existence and is counted among the favourite destinations for travellers from across the world not have a federal tourism ministry? It was never emphasised in early years, because, like other fledgling federations, unifying the armed and police forces, social services and education were and continue to be the priority.
During last week's ITB Berlin, the world's biggest tourism convention, the emirates of Abu Dhabi, Dubai and Sharjah were represented in separate booths. There were 253 exhibitors from the UAE, but not a single federal institution promoting Brand Emirates.
There is a risk that as more people abroad see the various emirates as separate states, this mentality will seep into the culture of this mostly expat nation. Unless Emiratis take this matter seriously, no one else will, Vision2021 or not.
Sultan Sooud Al Qassemi is a non-resident fellow of the Dubai School of Government
sultan.alqassemi@gmail.com
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Another way to earn air miles
In addition to the Emirates and Etihad programmes, there is the Air Miles Middle East card, which offers members the ability to choose any airline, has no black-out dates and no restrictions on seat availability. Air Miles is linked up to HSBC credit cards and can also be earned through retail partners such as Spinneys, Sharaf DG and The Toy Store.
An Emirates Dubai-London round-trip ticket costs 180,000 miles on the Air Miles website. But customers earn these ‘miles’ at a much faster rate than airline miles. Adidas offers two air miles per Dh1 spent. Air Miles has partnerships with websites as well, so booking.com and agoda.com offer three miles per Dh1 spent.
“If you use your HSBC credit card when shopping at our partners, you are able to earn Air Miles twice which will mean you can get that flight reward faster and for less spend,” says Paul Lacey, the managing director for Europe, Middle East and India for Aimia, which owns and operates Air Miles Middle East.
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.”
What are NFTs?
Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.
You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”
However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.
This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”
This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.