Dubai's leading property developers have come together to agree to commit more than half a billion dirhams to the conservation and construction of mosques in their communities.
The developers include Emaar Properties, Damac Properties, Azizi Developments, Danube Properties, HRE Developments, and ORO 24 Developments.
Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence, was present to oversee the signing of the agreement, which expands public-private sector partnerships, boosting the role of mosques as centres of cultural and humanitarian influence.
The agreement was signed between the Islamic Affairs and Charitable Activities Department and the Dubai Land Department, and is aimed at enhancing the sustainable construction, maintenance and operation of mosques in property developments in Dubai.
The initiative goes some way to contributing to achieving the goals of Dubai's 2033 Plan and supports the targets of Dubai Social Agenda 33.
Sheikh Hamdan met a group of donors, mosque patrons and property developers during the event, emphasising to them that initiatives such as this one reflect the values of giving in Dubai’s society.
Ahmed Darwish Al Muhairi, director general of the Islamic Affairs and Charitable Activities Department, emphasised that this initiative aligns with IACAD’s vision to enhance sustainability and community partnership in building and caring for mosques.
"This agreement reflects our commitment to promoting the concept of social responsibility and engaging all sectors in supporting humanitarian and religious projects, contributing to establishing mosques as integrated community centres that keep pace with the advancement of modern society," he said.
The contributions to the Mosque Sponsorship Initiative total more than Dh560 million, funding projects dedicated to the construction and upkeep of mosques in various real estate development areas, serving more than 50,000 worshippers.
Emaar Properties contributed Dh280 million to support 42 mosques in nine areas, with a capacity of up to 29,696 worshippers. Azizi Developments contributed Dh80 million to support three mosques in three areas, with a capacity of up to 7,000 worshippers. Damac Properties contributed Dh50 million to support seven mosques in four areas, with a capacity of up to 3,600 worshippers. ORO 24 Developments contributed Dh50 million to support six mosques in three areas, with a capacity of up to 3,300 worshippers. Additionally, HRE Developments contributed Dh50 million to support five mosques in three areas, with a capacity of up to 3,000 worshippers. Danube Properties contributed Dh50 million to support four mosques in two areas, with a capacity of up to 3,200 worshippers.
"This agreement reflects our dedication to supporting the city's spiritual well-being," said Ahmad Al Matrooshi, executive director at Emaar Properties. "We are committed to ensuring that mosques remain welcoming spaces for worship and reflection."
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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.”
