My Dubai Rent takes you inside a reader's home to have a look at what they get for their money, how much they pay in rent and asks them what they like and don't like
Have you wondered what it would be like to live in a hotel and not have to worry about housework or racking up high utility bills?
That is the life that one Dubai resident has chosen for himself.
Egyptian Alwaleed Osman, 32, an adjudicator for Guinness World Records, pays Dh5,000 a month for a serviced apartment in Rove Hotel, in Dubai's Healthcare City.
He invited The National to pay him a visit at home and see why he has lived there since 2019.
Why did you not rent an apartment or villa like most people?
When I saw the cost of rent in Dubai I decided to stay where I am
Alwaleed Osman
Before the Covid-19 pandemic, I was working for an oil company and I would stay on site a lot, so it was cheaper to stay in a hotel the rest of the time.
I was able to get a whole month here for Dh3,000 at the time. It has everything I need, from a swimming pool to a gym, and I do not have to pay utility bills.
There are a lot of hidden costs when you rent an apartment, including tissue paper and rubbish bag expenses, just in the bathroom alone.
Another reason, if I am to be honest, is that it can be very lonely living on your own.
There is a hustle and bustle about the place. If I cannot sleep, I can always go downstairs and chat with people by the front desk.
You always meet new people here too as it is a mix of residents and tourists.
It is a really good location too as it is only 10 minutes away from Dubai Mall and Business Bay.
I can also have work meetings downstairs, which I would not be able to do if I was in an apartment.
Does living in a hotel offer value for money?
The prices have gone up since the pandemic. In fact, they crept up as far as Dh6,000 a month but now they are down again for the summer.
I was actually considering moving to an apartment but when I saw the cost of renting a place in Dubai, I decided to stay where I am.
What do your friends and family say about you choosing to live in a hotel?
I think they see it as a status symbol but that is not the case at all.
They are paying more for their properties, in fact.
That said, my mother keeps telling me I need to get a more stable life.
Have you lived in your own apartment before or always stayed in hotels?
I rented an apartment in Dubai Silicon Oasis before but I did not like it.
I felt really isolated and far from everywhere else. It was a lot of hassle, right down to trying to sell my furniture when I moved out.
There was a lot I ended up putting in storage and I lost a lot of money.
I feel if I was to move out, I would rather buy than rent but mortgages are so expensive right now.
What are the disadvantages of living where you do?
It never really feels like it is my own place. You feel like you are a wandering tourist. There is nothing wrong with that, but I wish I felt more settled sometimes.
The space is also a bit smaller, compared with some other apartments but, at the same time, I have seen many others that are not as big as mine.
Brief scores:
QPR 0
Watford 1
Capoue 45' 1
The story of Edge
Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, established Edge in 2019.
It brought together 25 state-owned and independent companies specialising in weapons systems, cyber protection and electronic warfare.
Edge has an annual revenue of $5 billion and employs more than 12,000 people.
Some of the companies include Nimr, a maker of armoured vehicles, Caracal, which manufactures guns and ammunitions company, Lahab
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
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The years Ramadan fell in May
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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