Snoworld, the indoor winter sport complex at Marina Mall in Abu  Dhabi, is still under construction and its delay is costing traders business.
Snoworld, the indoor winter sport complex at Marina Mall in Abu Dhabi, is still under construction and its delay is costing traders business.

Marina Mall to consider recompense for traders



ABU DHABI // In the face of rising anger among merchants, Marina Mall says it will consider compensating businesses hurt by the delay of the planned Snoworld indoor winter-sport complex, but it is asking for profit-loss statements that one trader said may be too costly for businesses to produce. In a letter sent to businesses on Jan 19, the mall's leasing administration manager, Hanley Thomas, acknowledged "concerns regarding unsatisfactory performance" of retailers and food outlets because Snoworld's two main attractions, the ski dome and skating rink, had yet to open. Still, business owners and managers who rushed to open their cafes and stores specifically to draw in shoppers from Snoworld, were dissatisfied. "We opened the shop here because of the ski hill, but until now it's been almost two years," said Teresito Mateo, who manages the Quicksilver apparel shop. "During weekdays, we have less than 20 customers, not all of them buying. Maybe 20 per cent of them are buying." The shop opened in Oct 2007.Rami Chehabeddine, the research and development manager for the National Investment Corporation, which runs the mall, said the delays were "natural" but that the ski hill would be completed eventually. "Things are in progress," he said. "It's our project, and we are behind it and it will be concluded." He did not say when construction of Snoworld would resume. Meantime, the principal owner of a major global international clothing brand with several stores in the mall said yesterday he doubted that many of the retailers would be able to pay for an audit to determine profits and losses. "If you go to a cheap auditing company, they're going to charge you Dh40,000 or Dh50,000 at least,'' he said. "What the mall should do is just build the snow dome." This owner spoke on the condition of anonymity because he did not want to damage his relations with the mall. Another manager said he had lost nearly Dh1 million (US$270,000) since opening his food business in November 2007. Requesting anonymity so as not to spread "ill feeling" with mall managers, he said his business was reaching only 70 per cent of its target. And he called the profit-loss request irrelevant. "Even if I make money today I want compensation," he said. "If I'm doing my best and investing my time and effort so as not to lose because of these problems, that has a price." "We stopped paying rent a month ago," he added. "Many tenants are not paying rent." According to the shop owners, it appeared the ski hill would be ready last spring, when skiing and skating instructors were hired and small heaps of artificial snow were dumped inside. The traders said they understood that the dome was not insulated well enough to keep the temperature constantly below freezing. The snow was later cleared, and the indoor area remains a construction site. Ice was tested on the skating rink around the same time, they said. They also complained that their location, near the end of the mall, was "hidden" from shoppers. "As you can see, this is a disaster," one cafe owner said, gesturing towards the empty glass-enclosed site. "Everyone, all the shops, are writing letters to send to them and we're saying we will not pay rent." Noting that merchants had spent a lot of money to set up in the mall, he said: "At the end of the day we're only renting here because this new area was supposed to have the ski hill." The owner said his cafe needed to make Dh8,000 a day to cover rent and staff costs. "We have only two tables and it's lunchtime but just look at it," he said. "This is supposed to be my pickup time, our business time. Just give me 100 customers a day and we'll be happy." mkwong@thenational.ae

Bundesliga fixtures

Saturday, May 16 (kick-offs UAE time)

Borussia Dortmund v Schalke (4.30pm) 

RB Leipzig v Freiburg (4.30pm) 

Hoffenheim v Hertha Berlin (4.30pm) 

Fortuna Dusseldorf v Paderborn  (4.30pm) 

Augsburg v Wolfsburg (4.30pm) 

Eintracht Frankfurt v Borussia Monchengladbach (7.30pm)

Sunday, May 17

Cologne v Mainz (4.30pm),

Union Berlin v Bayern Munich (7pm)

Monday, May 18

Werder Bremen v Bayer Leverkusen (9.30pm)

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.”

COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
Company profile

Company: Verity

Date started: May 2021

Founders: Kamal Al-Samarrai, Dina Shoman and Omar Al Sharif

Based: Dubai

Sector: FinTech

Size: four team members

Stage: Intially bootstrapped but recently closed its first pre-seed round of $800,000

Investors: Wamda, VentureSouq, Beyond Capital and regional angel investors

The specs

Engine: 1.5-litre turbo

Power: 181hp

Torque: 230Nm

Transmission: 6-speed automatic

Starting price: Dh79,000

On sale: Now

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
The specs: 2018 Chevrolet Trailblazer

Price, base / as tested Dh99,000 / Dh132,000

Engine 3.6L V6

Transmission: Six-speed automatic

Power 275hp @ 6,000rpm

Torque 350Nm @ 3,700rpm

Fuel economy combined 12.2L / 100km