Mustafa Koita is the founder and chief executive of Koita, a homegrown organic foods company he set up in 2013. The American previously worked in the defence industry, heading the Middle East region for a division of Boeing Defense Systems. Mr Koita, 41, who has lived in the UAE for more than 10 years, is married with three children: two daughters and a son.
How did your upbringing shape your attitude towards money?
My father immigrated to the US in the ‘60s with very little in his pockets. He worked extremely hard to put himself through university, get a job and raise four naughty children. Even after achieving a financial comfort level, my father still insisted that his children earn every penny. There were no allowances or expensive birthday gifts, there were only opportunities for us to go out and get a job. I really hated this when I was younger, as my other friends had it easy. However, in hindsight it was the best thing my father could have done for us – teach us the real value of money.
How much did you get paid for your first job?
My first job was working for a software company in Chicago as an inside sales representative. The pay was about US$28,000 a year or around Dh8,500 per month. I lived off canned tuna sandwiches and microwave noodles, and had a full head of hair.
Are you spender or saver?
I consider myself a strategic spender and like to invest in things that are either fun, educational or investments that save me time. When things are tight I spend less on the fun things, however when I can, I love to go on family holidays, eat out and go gadget shopping.
What is your most cherished purchase?
A few years ago we purchased a home in the UAE. It was one of our largest investments to date and our kids are loving every square foot of it. My wife enjoys decorating it (a never-ending project) and as a technology geek I love every home automation gadget I can put my hands on. I’ve probably invested about Dh20,000 to date in gadgetry.
Have you ever had a month where you feared you could not pay the bills?
No, and I pray it never happens. We try to run an extremely lean organisation and have a cash buffer in case of emergencies.
Where do you save your money?
In a good old-fashioned current bank account. Besides bonds we’re quite risk-averse with our core savings.
Do you prefer paying by credit card or in cash?
Credit of course, as I love racking up the airline miles. Although you always need some cash to give out a proper tip here and there.
What has been your best investment?
It’s been in myself – or in other words, Koita Foods. Not only am I extremely passionate about healthy eating, but the food industry itself is not very cyclical. More importantly, since I run the business I’m also in the best position to manage my own investment risk.
What do you most regret spending money on?
Speeding tickets. I’m pretty embarrassed to say how much I’ve racked up in fines.
What financial advice would you offer your younger self?
None at all. I am glad I made all the financial mistakes in my earlier life. It’s those tough times that have made me a better business leader today.
Do you have a plan for the future?
Right now I want to focus on building a durable and sustainable business that I can one day hand over to my children. To do that financing has been critical to our growth; and we feel lucky to have been working with the cloud lending team at Beehive.ae. They are super easy to work with and it’s also given our customer base in the UAE an opportunity to be part of our home-grown growth story.
If you won Dh1 million, what would you do with it?
Pay off those speeding tickets. Just kidding, I would gladly invest it back into my business.
mkassem@thenational.ae
Follow us on Twitter @TheNationalPF
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
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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.”
The Brutalist
Director: Brady Corbet
Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn
Rating: 3.5/5
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If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
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MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
Results:
6.30pm: Maiden | US$45,000 (Dirt) | 1,400 metres
Winner: Tabarak, Royston Ffrench (jockey), Rashed Bouresly (trainer)
7.05pm: Handicap | $175,000 (Turf) | 3,200m
Winner: Dubhe, William Buick, Charlie Appleby
7.40pm: UAE 2000 Guineas Group 3 | $250,000 (D) | 1,600m
Winner: Estihdaaf, Christophe Soumillon, Saeed bin Suroor
8.15pm: Handicap | $135,000 (T) | 1,800m
Winner: Nordic Lights, William Buick, Charlie Appleby
8.50pm: Al Maktoum Challenge Round 2 Group 2 | $450,000 (D) | 1,900m
Winner: North America, Richard Mullen, Satish Seemar
9.25pm: Handicap | $175,000 (T) | 1,200m
Winner: Mazzini, Adrie de Vries, Fawzi Nass
10pm: Handicap | $135,000 (T) | 1,400m.
Winner: Mubtasim, William Buick, Charlie Appleby
