NEW DELHI // When Ahmed Arif first left his village of Gambhirban, in 1994, his ambitions were simple: to work in the UAE so that his parents and four siblings would not starve.
After nearly a decade, in 2005, he returned to Gambhirban, located in Uttar Pradesh, and opened a novelty shop that sees roaring business. Today, he marvels at that 19-year-old version of himself that first left home.
“I didn’t know that I could build an entire life for myself out of my work there,” Mr Arif said. “That I could earn enough to not only send my brothers and sisters to school but even to buy this shop.”
Mr Arif’s story is not uncommon. Each year the 2.2 million Indians living in the UAE send home about $15 billion (Dh55 billion), making up more than a fifth of India’s received remittances of roughly $70 billion annually.
In Dubai, Mr Arif worked as a carpenter and a mason, securing spots on work crews through his brother, who had moved there before him. “It was hard work, because you had to learn a lot quickly,” Mr Arif said. “I learnt to drive. I learnt to fix motors.”
With the money he and his brother sent home, Mr Arif said, his parents were able to fix up their house, buy better food, and even start a savings account.
“When I came home, that account was waiting for me,” he said. “It had around 300,000 rupees [Dh17,700] in it.”
Mr Arif used the money to rent a storefront on Gambhirban’s main road, selling gifts, toys and cosmetics. He knew what to stock, he said, because he had seen so many similar shops in the UAE.
“Many of my customers also have relatives in the UAE, so they have money to buy good products,” Mr Arif said. “This would never have been the case 20 years ago, I think. Nobody had any money at all then.”
Migrant workers, especially in developing countries, provide an essential boost to their local economies back home, said R Mahadevan, a Chennai-based researcher of migration patterns.
“Unquestionably, families back home are better off, and these billions of dollars of remittances improve their way of life in a way that wouldn’t have been possible otherwise,” Mr Mahadevan said.
In the village of Naganakulam, in the state of Tamil Nadu, Latchumi Vijayan misses her husband every day, but she understands why he choose to take a job in Sharjah.
“There was no work for him here, which is why he left in 2004,” Ms Vijayan said. He only studied until the eighth grade, and when a distant relative suggested that he join a construction crew in the UAE, he jumped at the chance.
Thanks to the money she receives every six months from her husband, Ms Vijayan keeps her children in school and cares for her ailing mother.
“It’s difficult, though, and I wish he would come home soon,” she said. “We miss him.”
It was different for Pial Jayasena, who travelled to Dubai from Colombo, in Sri Lanka, when he was barely 20. He was unmarried, and his parents were not in dire financial straits.
He went to the UAE, he said, out of a sense of adventure, and to see something of the world beyond Sri Lanka.
“I was a young man,” he said with a big grin. “It was exciting.”
When he came back to Colombo in 2009, he had worked overseas for 12 years, first in the UAE and then in Oman. He found employment as a mechanic and then became a chauffeur.
With the money he saved, he bought an autorickshaw upon his return to Colombo — a roomy, parrot-green vehicle with a deck of speakers behind the passenger seat. He plays loud Bollywood music as he drives, having acquired a taste for it from his Indian colleagues in the UAE.
“I liked the UAE, and sometimes I miss it,” he said. “There was such camaraderie among us migrants. We were a big, tight community.”
He could never have been his own boss, as he is now, without the financial independence that his savings from the UAE afforded him.
“I’d have been working for somebody else, toiling away, not being able to pick my daughter up from school or any of that,” he said. “This is a much better life.”
ssubramanian@thenational.ae
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
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Dan Brown
Doubleday
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This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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Athletic Bilbao 0
Real Madrid 1 (Ramos 73' pen)
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
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.”
The specs
Engine: 3.8-litre, twin-turbo V8
Transmission: eight-speed automatic
Power: 582bhp
Torque: 730Nm
Price: Dh649,000
On sale: now
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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Other acts on the Jazz Garden bill
Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.
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Wicked
Director: Jon M Chu
Stars: Cynthia Erivo, Ariana Grande, Jonathan Bailey
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
The Orwell Prize for Political Writing
Twelve books were longlisted for The Orwell Prize for Political Writing. The non-fiction works cover various themes from education, gender bias, and the environment to surveillance and political power. Some of the books that made it to the non-fiction longlist include:
- Appeasing Hitler: Chamberlain, Churchill and the Road to War by Tim Bouverie
- Some Kids I Taught and What They Taught Me by Kate Clanchy
- Invisible Women: Exposing Data Bias in a World Designed for Men by Caroline Criado Perez
- Follow Me, Akhi: The Online World of British Muslims by Hussein Kesvani
- Guest House for Young Widows: Among the Women of ISIS by Azadeh Moaveni
Dubai World Cup Carnival card
6.30pm: UAE 1000 Guineas Trial Conditions (TB) US$100,000 (Dirt) 1,400m
7.05pm: Handicap (TB) $135,000 (Turf) 1,000m
7.40pm: Handicap (TB) $175,000 (D) 1,900m
8.15pm: Meydan Challenge Listed Handicap (TB) $175,000 (T) 1,400m
8.50pm: Dubai Stakes Group 3 (TB) $200,000 (D) 1,200m
9.25pm: Dubai Racing Club Classic Listed Handicap (TB) $175,000 (T) 2,410m
The National selections
6.30pm: Final Song
7.05pm: Pocket Dynamo
7.40pm: Dubai Icon
8.15pm: Dubai Legacy
8.50pm: Drafted
9.25pm: Lucius Tiberius
TICKETS
For tickets for the two-day Maharlika Pilipinas Basketball League (MPBL) event, entitled Dubai Invasion 2019, on September 27 and 28 go to www.meraticket.com.