The Dubai International Chamber has opened its seventh representative office in Africa, bolstering its overseas presence as it seeks to strengthen economic and bilateral ties with the continent.
The office in the Nigerian city of Lagos, the chamber's 28th international office, gives Dubai-based businesses the opportunity to tap into the potential of the Central and Western African markets, the chamber said in a statement on Friday.
The move would provide the opportunity for both sides to expand on their growing non-oil trade exchange, which rose by nearly 40 per cent to Dh7.8 billion ($2.12 billion) in 2022, it said.
"Establishing a presence in Lagos represents another significant milestone. The Nigerian market is one of the largest in Africa and enables Dubai-based traders to access a wide range of markets," Mohammad Lootah, president and chief executive of Dubai Chambers, said in the statement.
A total of 551 Nigerian companies are currently registered as active members of the Dubai Chamber of Commerce, 75 of which joined between the first and third quarters of 2023, according to chamber data.
Nigeria is also expected to benefit from the UAE's expertise in key growing industries, including financial technology, renewable energy and smart city solutions, the statement said.
"Our Lagos office will establish new channels of communication and economic co-operation between Dubai and Nigeria, and we look forward to working together to boost bilateral trade and investment," Mr Lootah said.
The opening puts the chamber well on pace to achieve its goal of establishing 50 commercial representative offices worldwide by 2030, part of the objectives of the Dubai Global economic initiative launched in June 2022.
The Dubai International Chamber, which is among the three entities under the restructured Dubai Chambers, achieved a milestone in June when it opened its representative office in London, which was its first in Europe and 20th globally at the time.
Since then, it has continued its aggressive expansion into more countries, setting up hubs in Johannesburg, Ho Chi Minh City, Milan, Paris, Amsterdam and, last week, Frankfurt and Tokyo.
It also supports the Dubai Economic Agenda (D33), a major programme launched by the government that aims to double the size of the emirate's economy to Dh32 trillion by 2033.
“We remain dedicated to implementing our strategic priorities and supporting the success of the private sector to bring the ambitions of D33 to life," Mr Lootah said.
Organisations from the UAE and the Middle East have long tapped into Africa's potential, which is home to the world’s youngest and fastest-growing population, burgeoning cities and "bold innovations in everything from FinTech to clean energy", according to McKinsey & Company.
Its population is expected to nearly double to 2.5 billion by 2050, presenting several opportunities for strong and inclusive growth, it said.
Nigeria is part of the sub-Saharan region, where growth is expected to rebound to 4 per cent, from 3.3 per cent in 2023, the International Monetary Fund said last month.
Many countries in the region have worked to address macroeconomic imbalances, resulting in fiscal deficits, for example, narrowing down, helping stabilise public debt, the IMF said.
Investments from Dubai entities into Nigeria hit about Dh862.2 million between January 2018 and July 2023, the chamber said, quoting data from FDI Intelligence.
Sectors that have received investments include food and beverage, real estate, financial services, software, IT services, business services, fertilisers, building materials, and transportation and storage.
Key Nigerian exports to the UAE include gold, while Nigeria imports equipment, cars and jewellery from the UAE.
The partnership between the two countries "can serve as a catalyst for growth, innovation and prosperity", the statement said, quoting Lagos Governor Babajide Olusola Sanwo-Olu.
This emphasises that "the UAE's expertise in the field of logistics and entry into global markets aligns with Lagos' potential as a manufacturing and technology hub and can help take joint relations to new heights".
The chamber's Lagos office will seek to strengthen relationships with key public and private sector stakeholders and deliver a comprehensive range of support to the Nigerian business community, the statement said.
This will include assisting Nigerian companies in entering the Dubai market and expanding through the emirate and beyond, it added.
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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Hometown: Bogota, Colombia
Favourite place to relax in UAE: the desert around Al Mleiha in Sharjah or the eastern mangroves in Abu Dhabi
The one book everyone should read: 100 Years of Solitude by Gabriel Garcia Marquez. It will make your mind fly
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Uefa Champions League semi-final, second leg result:
Ajax 2-3 Tottenham
Tottenham advance on away goals rule after tie ends 3-3 on aggregate
Final: June 1, Madrid
UK’s AI plan
- AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
- £10bn AI growth zone in South Wales to create 5,000 jobs
- £100m of government support for startups building AI hardware products
- £250m to train new AI models
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Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.
Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.
A list of the animal rescue organisations in the UAE
Like a Fading Shadow
Antonio Muñoz Molina
Translated from the Spanish by Camilo A. Ramirez
Tuskar Rock Press (pp. 310)
T20 World Cup Qualifier
October 18 – November 2
Opening fixtures
Friday, October 18
ICC Academy: 10am, Scotland v Singapore, 2.10pm, Netherlands v Kenya
Zayed Cricket Stadium: 2.10pm, Hong Kong v Ireland, 7.30pm, Oman v UAE
UAE squad
Ahmed Raza (captain), Rohan Mustafa, Ashfaq Ahmed, Rameez Shahzad, Darius D’Silva, Mohammed Usman, Mohammed Boota, Zawar Farid, Ghulam Shabber, Junaid Siddique, Sultan Ahmed, Imran Haider, Waheed Ahmed, Chirag Suri, Zahoor Khan
Players out: Mohammed Naveed, Shaiman Anwar, Qadeer Ahmed
Players in: Junaid Siddique, Darius D’Silva, Waheed Ahmed
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Director: Jon Watts
Stars: Tom Holland, Zendaya, Jacob Batalon
Rating:*****
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