ABU DHABI // Meat counters at two of the capital's biggest supermarkets were closed down for offences that included relabelling and selling out-of-date products, it was disclosed yesterday.
For the first time, a report by the Abu Dhabi Food Control Authority (ADFCA) provided details of the violations that temporarily closed meat counters at Lulu Hypermarket in Al Wahda Mall and Carrefour in Marina Mall.
The violations posed a risk to the health of consumers, with some constituting "trade fraud", the report said.
Mohamed al Reyaysa, a spokesman for the ADFCA, said the report was a "clear message" that the authority took its responsibility seriously.
"We are taking care of any kind of violations, either small or big," he said. "We have a red line that we don't want anybody to consume any food that is below our health and safety standards."
According to the report, inspectors found Carrefour selling meat past its sell-by date, and selling meat without knowing its origins. The inspectors also found workers defrosting chicken in water, a health hazard.
Although the counter was considered a fresh meat establishment, staff were storing products in a deep freezer, the report said.
Some of these violations meant the store was guilty of "trade fraud".
"There are different meats which are repackaged by removing the old package and placing it in a new package with a new production and expiry date, or mixing it with new meat," the report said.
Carrefour could not be contacted for comment.
At Lulu Hypermarket, meat past its sell-by date was on display, said the report, as was meat without any labelling, while dates on cans of meat had been altered.
The inspectors also found by-products from the deboning process - considered not fit for human consumption - in minced meat products for sale.
The store was also warned about cleanliness after inspectors noted that rubbish bags were not in bins.
As a result of the inspections, meat production and the display of minced meat at Carrefour was halted and the counter shut down for three days in June. The authority also destroyed 58kg of meat products.
In July, Lulu's meat section was shut down for three days.
A spokesman for Lulu acknowledged there had been violations, but said they were limited and the company was working on improving its standards.
"There have been a total of 43 visits to our store by ADFCA officials to date this year and only on three occasions have they found violations on our part," he said.
"We have taken serious note of these issues and have done a thorough investigation of the whole procedure to rectify any hitches."
The spokesman said some of the Government's food safety requirements were difficult to understand.
"In some instances we have found there is a lack of clarity with regard to some of the ADFCA guidelines, and we are meeting with them to clarify these issues," he said.
The Healthy Food Restaurant in Musaffah and the Golden Sun Cafeteria in Mina Street were also listed as violators in the authority's report, which was a result of routine inspections, surprise visits and undercover shopping by officials.
The authority also follows up complaints from consumers who report violations.
"We're not going to be everywhere all the time, so we call upon consumers to help," Mr al Reyaysa said.
Establishments first receive a warning for violations, followed by official complaints that are settled in court and can involve fines. The third step sees the store or restaurant shut down for three to 10 days.
Closings were imposed so the store could address violations or as a punitive measure, Mr al Reyaysa said.
The authority also releases the names of the offending establishments to the media.
"They are back [open] but they don't have those violations now," Mr al Reyaysa said. "We have promised to have transparency with the public, so we have to mention their name even if they close for half an hour.
"We have to mention their name to make sure they don't come back to this, and this is something we are serious about."
Repeat offenders might have their licences taken away, he said.
The authority has seen a decline in the number of violators since operations began in 2005.
"Our role was one of raising awareness in the beginning," Mr al Reyaysa said.
"Then we came to the point of accountability."
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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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