Pomegranates being harvested in Kurdistan. Photo: Kurdistan Regional Government
Pomegranates being harvested in Kurdistan. Photo: Kurdistan Regional Government
Pomegranates being harvested in Kurdistan. Photo: Kurdistan Regional Government
Pomegranates being harvested in Kurdistan. Photo: Kurdistan Regional Government

First pomegranates from the Kurdistan region of Iraq appear on shelves in UAE


Mina Aldroubi
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Shoppers in the UAE will now be able to buy pomegranates grown in Iraq’s Kurdistan Region.

Hanar pomegranates, the Kurdistan region of Iraq's most famous fruit, have hit the shelves of UAE retailers Lulu and Carrefour.

“This is the first and largest non-oil export initiative that has happened after much hard work and diplomatic initiatives between leaders of the KRG (Kurdish Regional Government) and the UAE,” Jaleel Salihi, a senior analyst at Prime Minister Masrour Barzani's office, told The National.

The delicious fruit will be exported from nearly 100 farms in Halabja and Zakho to the UAE where they will be re-exported to other Gulf states such as Saudi Arabia, Qatar, Bahrain and Kuwait, Mr Salihi said.

Pomegranates from Halabja and Zakho “have an advantage and are in global demand because they are free of chemical fertilisers and pesticides,” he said.

“So they are naturally grown.”

The fruit is part of Iraq's Kurdistan region's identity. Every year Halabja hosts a pomegranate festival to showcase its products.

Pomegranates at a Lulu's in Dubai. Photo: Kurdistan Regional Government
Pomegranates at a Lulu's in Dubai. Photo: Kurdistan Regional Government

“You cannot go to a Kurdish home without having some,” Mr Salihi said.

Mr Barzani said Kurdistan's premium grade pomegranates are hitting supermarkets across the Gulf as promised, on Twitter.

More than 500 tonnes have already been exported and the KRG is looking to expand to Europe.

The exports to the UAE are estimated to be about worth about $1 million in the first phase and to reach $4 million by 2023.

The KRG has just conducted its first cycle of trial shipments, Mr Salihi said, adding that after the holidays the government is expecting to “start a full stack of orders to wholesalers in the UAE.”

“We see Dubai as a hub for Kurdistan and its [products] can be re-exported to other countries. There is a high level of co-operation that has been translated to the working teams between the KRG and the UAE,” Mr Salihi said.

“This is an initiative and proof of concept that Kurdistan can export and its agricultural projects are exportable and export-worthy,” he said.

Since the Kurdish pomegranates are new to the market, it may take time for UAE customers to get used to them.

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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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Updated: February 01, 2023, 12:26 PM