ABU DHABI // Stroll through any shopping mall in the capital and the cacophony of ring tones will dispel any doubt that the UAE has the highest number of mobile phone lines per capita in the world.
Pockets bulge with handsets even while callers press phones to their ears.
The UAE is awash with mobile phone lines, according to a new confidential report published exclusively today in The National.
There are almost twice as many mobile phone lines as there are people in the nation, a testament to UAE consumers' extraordinary passion for the technology.
The new figures from the Telecommunications Regulatory Authority (TRA) relate to buying trends for December, the most recent period available, and show there were 191 active mobile telephone lines per 100 people in the UAE.
This is an increase from 186 lines per 100 people in October, according to TRA figures released last month, and puts the UAE at the top of the list, beating even the bustling business hubs of Hong Kong and Singapore.
But why the fascination with mobile communications in the UAE?
Retailers in Abu Dhabi's thriving mobile phone heartland of Defence Road reported that shoppers regularly spent tens of thousands of dirhams for catchy numbers; one said he knew of a customer who shelled out Dh40,000 (US$10,890) on a number.
This price tag is far lower than the most expensive mobile number ever sold - 6666666 - which was bought from the Qatar Telecom (Qtel) network by an anonymous buyer in May 2006 for Dh10 million, but it demonstrates the phenomenal interest that UAE consumers have in the gadgets.
"It is cheap to get a new number and it impresses people if you are seen having many phones," said Iman al Shukair, 37, owner of Paris Phone.
"It is a sign of being rich and it also has a practical side; you can divide up your work life and business life."
The UAE's original mobile phone provider, Emirates Telecommunications Corporation, or Etisalat, monopolised the market until its rival du launched operations in Feb 2007.
Two years later the companies are locked in a battle for market share with both sides launching discounts and special deals in a bid to woo potential customers.
Du has been more aggressive in its pricing structure, introducing per-second billing and permanent discounts to selected numbers.
Etisalat reports that it has a customer base of more than seven million people and aims to secure its position by offering additional services, such as the launch last month of the Apple iPhone, while du hopes consumers will become more price-sensitive amid the economic slowdown, and choose its discount-focused offers.
"It is very easy to get a phone number here and there are good deals if you use different networks for different calls," said Mr al Shukair.
"Du is very cheap for international calls and they charge you per second, rather than per minute like Etisalat, but Etisalat has a much more reliable network, so people buy both.
"Now people want even more phone numbers so they can give close business contacts one number and more distant contacts a different number.
"This way they can switch off the busy business phone but still get important calls from people who have their private business number."
Faisal Mohammed, 22, who works as a retail assistant at the Hello Future mobile store, said, "Everyone has many phones these days.
"I have four mobile numbers. I use two Etisalat and two Du numbers. I use one for my girlfriend, one for family, one for work and one I keep in case I need to transfer credit to another phone.
"I use the du phone most of the time because it is cheaper but on Friday afternoons the network is always so busy, you can't get through, so then I use Etisalat.
"It is even worse during Eid. Everybody is on the phone at the same time."
Amin Ghanem, 21, a salesman at the 007 store in Abu Dhabi, said many UAE parents bought phones for their children.
"It's fine when the children are young but as they grow up they want more independence.
"They don't necessarily want their parents to get their telephone bill and see who they are calling.
"So they get a new number and a new phone that they pay for, which they can keep secret."
Having multiple phones is also seen as a fashion accessory among teenagers, said Hanna Azzam, 37, who owns three branches of Capital Phones in Abu Dhabi.
"It's a way of impressing friends, and for boys, it is a way of impressing girls. They want to have many phones so they can look cool.
"They change their handsets every few months so they are always up to date and spend thousands of dirhams on telephone numbers.
"I sold a number about a year ago for Dh25,000. He [the buyer] was only about 17. His family paid for it.
"As long as people are prepared to pay, I will sell them."
An IT supervisor, Hamed al Bloushi, 33, used to carry three phones, until he bought a special Samsung handset which holds two SIM cards.
The father of six, who lives in Abu Dhabi, used one for work, one for family and a du line to take advantage of the cheap call rates.
"I was tired of carrying around all the phones but didn't want to have to give up using the different lines," he said.
Steven Hartley, a senior analyst with the telecoms consultancy, Ovum, said the record level of phone number ownership in the UAE was a natural consequence of the high GDP per capita of the population and the large business community.
"You have a large proportion of the population with a high income who spend a significant amount of time on the move, so their communications must be mobile.
"People use a USB modem to connect their laptop to the internet, have a BlackBerry in one pocket and a mobile phone in the other. That's three telephone lines already.
"Add to that people who use one phone for work and another for their personal calls and separate SIMs for international calls and it all quickly adds up.
"There is also a status symbol factor here. People use several mobile phones and several lines as a means to impress business colleagues."
He believed the number of mobile phone lines being used in the UAE was likely to increase in future despite the global slowdown.
"In the past the industry has tried rolling out phones which use multiple SIM cards but they have failed to really take off. I can
imagine that if the trend of people using more than one SIM card continues, phone manufacturers will try again," added Mr Hartley.
But for young men such as Ali Ghana, 20, from Syria, who carries four phones, multi-SIM handsets hold little attraction.
"It impresses girls. Carrying around many mobiles is not easy, but that is what pockets were made for."
chamilton@thenational.ae
Company%20profile
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The specs
Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
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Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
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.”
Need to know
Unlike other mobile wallets and payment apps, a unique feature of eWallet is that there is no need to have a bank account, credit or debit card to do digital payments.
Customers only need a valid Emirates ID and a working UAE mobile number to register for eWallet account.
TO A LAND UNKNOWN
Director: Mahdi Fleifel
Starring: Mahmoud Bakri, Aram Sabbah, Mohammad Alsurafa
Rating: 4.5/5
Business Insights
- As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
- SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income.
- Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
Disclaimer
Director: Alfonso Cuaron
Stars: Cate Blanchett, Kevin Kline, Lesley Manville
Rating: 4/5
Nayanthara: Beyond The Fairy Tale
Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni
Director: Amith Krishnan
Rating: 3.5/5
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
COMPANY%20PROFILE%20
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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.
Jawab Iteiqal
Director: Mohamed Sammy
Starring: Mohamed Ramadan, Ayad Nasaar, Mohamed Adel and Sabry Fawaz
2 stars
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
Zayed Sustainability Prize