At Heathrow’s Terminal 5, with time to spare, I wander around the boutiques. In the Rolex store, there are plenty of watches on display but none of them is immediately for sale — not in the sense that I could hand over my credit card and walk away with one on my wrist there and then.
These watches on show are not the real thing. They look like Rolexes, but they’re made to cease functioning properly after a while. They’re for the customer to try on.
They’re created like this to prevent someone from insisting on purchasing a display model, so the shop still has something to exhibit.
Weirder still, is that if I did manage to acquire a Rolex, I would not wear it, not every day. I would bring it out for special occasions. Otherwise, it would remain in a safe.
Two friends in my part of London have had theirs snatched in particularly nasty, violent circumstances. I don’t want guys on mopeds following me and threatening me with machetes and hammers.
One pal, a senior partner in a law firm, fought back, with potentially disastrous consequences. Tough as he was, they still prised the Oyster Perpetual off his wrist. He was left with broken ribs, severe bruising and no treasured timepiece.
Yes, I know there is a two-to-three-year wait-list, depending on the type and specification, for a new Rolex and there is lengthy waiting, too, for models from Patek Philippe, Audemars Piquet, Omega and other top names.
They’ve been subject to delay in the past, but with the burgeoning middle classes worldwide having money to spend after storing up cash during lockdown when other sorts of expenditure were put on hold, that lag has become longer.
A 'rational indulgence'
Incredibly, anyone wanting even a Tudor, the lower-priced, sub-brand of Rolex, may also find they’ll have to wait. In that sense, high-end watches have become like the most coveted marques of car. And with that asset class, too, comes the fear of theft and the need for restricted, careful use.
A watch, though, is not like a car. It’s a wearable, smaller and without the same number of parts, electronics, software and materials.
But a Rolex is, similarly, precisely engineered and an object of beauty and therefore of desire. And, for many people, it’s the next most expensive item they will own, after a car.
They’re prepared to wait because this isn’t frippery, a plaything. Often, they’re buying something that they know will rise in value, so it’s an investment, and they can hand it on to future generations, so it’s an heirloom. They’re happy to hang on.
Remarkably, those who change their minds after being told their Rolex has finally arrived is tiny, about 5 per cent. Roughly 95 per cent stay the course. This, too, when we’re constantly informed that people today increasingly require instant gratification. It seems they’re prepared to make an exception where a Rolex is concerned.
Purchasing a Rolex is what Brian Duffy, chief executive of Watches of Switzerland, describes as a “rational indulgence”.
Luxury v demand
His company, which sells luxury watches and jewellery, is not in a bad place either, as “the only listed way to gain significant exposure to Rolex”, said Credit Suisse in a recent rave note. The shares were 840.50p when the Credit Suisse report was written early last month. The stock analysts set a price target of £10.75. They’re already up to 935.17.
While Credit Suisse was bullish overall, there were some bearish points, one of which was “supply constraints”. Constrained supply of certain watch brands is lower than demand, which is supportive of strong growth and margins.
“However, it remains a fine line to walk as too little supply can hold back growth as well as encourage moves to the second-hand market,” the Credit Suisse note said. “At the extreme, the push has led to a market in counterfeits, with the Swiss watch industry a top target in this regard.”
In Switzerland, there are reports that Rolex — founded in 1905, owned by the Hans Wilsdorf Foundation and headquartered in Geneva — is building a new, $1 billion factory in nearby Bule.
It will measure 100,000 square metres, the equivalent of 10 football pitches, and create 2,000 jobs when completed in 2029. Publicity-shy Rolex refuses to confirm, preferring to wait, it’s thought, until the deal is finalised.
Rolex had turnover of $7 billion in 2021 and manufactured about one million watches from facilities in Geneva (where they’re assembled and subjected to rigorous daily testing), Chene-Bourg, Plan-les-Ouates and Biel.
The feeling is that the new plant is not intended to ramp up production — certainly not to levels that would drastically bring down the wait-list.
It may reduce the delay a little, moving the company away from Credit Suisse’s “fine line” description, freeing up the ability to grow and not pushing too many would-be buyers in the direction of the second-hand market. In reality, though, it’s more about raising the famed quality still higher.
There is a reassuring aspect to Rolex. Others would be tempted to expand in all directions, rushing out cheaper models, upping production, cashing in on success — and probably eventually going bust.
Instead, Rolex plays a long game. It’s an all-too-rare example in a ferocious, crazily fast commercial world of a firm that knows how to make patience a virtue.
If you go
Flying
Despite the extreme distance, flying to Fairbanks is relatively simple, requiring just one transfer in Seattle, which can be reached directly from Dubai with Emirates for Dh6,800 return.
Touring
Gondwana Ecotours’ seven-day Polar Bear Adventure starts in Fairbanks in central Alaska before visiting Kaktovik and Utqiarvik on the North Slope. Polar bear viewing is highly likely in Kaktovik, with up to five two-hour boat tours included. Prices start from Dh11,500 per person, with all local flights, meals and accommodation included; gondwanaecotours.com
The specs
Engine: 2-litre 4-cylinder and 3.6-litre 6-cylinder
Power: 220 and 280 horsepower
Torque: 350 and 360Nm
Transmission: eight-speed automatic
Price: from Dh136,521 VAT and Dh166,464 VAT
On sale: now
Married Malala
Malala Yousafzai is enjoying married life, her father said.
The 24-year-old married Pakistan cricket executive Asser Malik last year in a small ceremony in the UK.
Ziauddin Yousafzai told The National his daughter was ‘very happy’ with her husband.
How to vote in the UAE
1) Download your ballot https://www.fvap.gov/
2) Take it to the US Embassy
3) Deadline is October 15
4) The embassy will ensure all ballots reach the US in time for the November 3 poll
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
UAE currency: the story behind the money in your pockets
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 DEALS
Hamilton $60m x 2 = $120m
Vettel $45m x 2 = $90m
Ricciardo $35m x 2 = $70m
Verstappen $55m x 3 = $165m
Leclerc $20m x 2 = $40m
TOTAL $485m
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
How it works
1) The liquid nanoclay is a mixture of water and clay that aims to convert desert land to fertile ground
2) Instead of water draining straight through the sand, it apparently helps the soil retain water
3) One application is said to last five years
4) The cost of treatment per hectare (2.4 acres) of desert varies from $7,000 to $10,000 per hectare
Five films to watch
Castle in the Sky (1986)
Grave of the Fireflies (1988)
Only Yesterday (1991)
Pom Poki (1994)
The Tale of Princess Kaguya (2013)
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
The specs: 2018 Nissan Altima
Price, base / as tested: Dh78,000 / Dh97,650
Engine: 2.5-litre in-line four-cylinder
Power: 182hp @ 6,000rpm
Torque: 244Nm @ 4,000rpm
Transmission: Continuously variable tranmission
Fuel consumption, combined: 7.6L / 100km
'My Son'
Director: Christian Carion
Starring: James McAvoy, Claire Foy, Tom Cullen, Gary Lewis
Rating: 2/5
