Salsa instructor Adel Besrour leads a class at the Ericsson offices in Downtown Jebel Ali in Dubai. Andrea Anastasiou
Salsa instructor Adel Besrour leads a class at the Ericsson offices in Downtown Jebel Ali in Dubai. Andrea Anastasiou

A fit worker is a happy worker



Christina O’Brian, a British HR executive, enjoys a special kind of incentive at her workplace. Every year she receives a Dh2,500 allowance she can use towards health club memberships.

“I think being fit and healthy helps you focus,” explains Ms O’Brian, 29, who lives in Dubai. “Exercise makes me feel much better about myself and I think this naturally impacts how you interact with others and builds confidence. Healthy staff ultimately should mean less sick days, so companies should view it as part of their investment in the individual.”

Ms O’Brian isn’t alone in enjoying these types of corporate wellness benefits. Mohammad Zahid, a 27-year-old Pakistani operations supervisor at Adib, receives a 50 per cent discount on membership packages at a gym franchise in Abu Dhabi. There is also a small gym available for senior staff at the company’s headquarters. “These benefits are important,” he says. “Apart from keeping fit, it gives the opportunity to staff to interact with others. If you have a workout partner who is a colleague, you put in more effort and are motivated to stay up to the mark.”

It’s well documented that corporate wellness benefits lead to more productive employees who require less health care. US research by Towers Watson and the National Business Group on Health revealed there are lower voluntary resignations at companies with effective wellness programmes.

And a 2012 study by Rand found half of US employers with at least 50 workers offered some form of health programme. It appears UAE companies are now beginning to follow suit.

While the majority of companies here offer the standard employment package – salary, annual ticket, repatriation ticket, and if you’re lucky a housing allowance – some organisations are matching what top US companies offer. These vary from office gyms right through to discounted health club memberships and organised aerobic classes.

GE Middle East, for example, has a “HealthAhead” initiative that aims to improve office well being. In line with this, GE’s 700 staff and their direct dependents receive a 50 per cent reimbursement on their gym membership fees.

In addition, GE organises sports sessions such as football and basketball twice a week and arranges annual tournaments, as well as fitness challenges. In the staff cafeteria there are discounts on healthy meals, and complimentary fruit is available in the office.

Joe Chalouhi, senior HR leader at GE Middle East, North Africa & Turkey says the wellness initiatives have been in place since 2011, and more than 350 staff members at the Dubai Internet City headquarters benefit from access to a gymnasium and other facilities, elements he feels contribute to improved employee wellness, productivity and job satisfaction.

“This in turn ensures that our retention rates remain high. The wellness of our employees therefore has a direct impact on the success of our company,” he says.

“Fitness allowances encourage and motivate our employees to join the gym or to participate in our weekly sports activities. We educate and develop awareness, and this in turn results in improved employee retention through increased productivity and morale- boosting, as well as less sick days being reported.”

Similarly, Ericsson gives its staff discounted rates to UAE gyms. The company also offers free abdominal crunch, Shotokai and salsa dance classes in the Dubai office and there is a social running group. “We believe healthy employees are happy employees,” says Amr Elenein, Ericsson’s sales and business development director. “That was our driver to start thinking about introducing these benefits. It’s a win-win situation because happier employees tend to be more engaged, motivated and productive.”

Suha Haroun, HR director for Bayt.com, says it is essential companies help staff achieve a work-life balance with wellness benefits part of the formula. Bayt.com’s 2012 “Work-life Balance in the Mena” poll highlighted how stress management and fitness are integral factors for sustaining wellness. And with today’s professionals spending an increasing amount of time in the office, these two elements are becoming more difficult to accomplish.

“The study reveals the majority of employees do not spend a sufficient amount of time on sports and exercise, while 14.5 per cent say that an uneven work-life balance is causing them high levels of stress,” says Ms Haroun.

However, Guillaume Mariole, the managing director of Ignite Fitness & Wellness, says the UAE market is changing as companies realise the value of a healthy workforce.

“Increases in insurance premiums due to many staff being assessed as high risk due to high diabetes and cholesterol [levels] has meant a shifting mindset,” he says. “The direct impact of wellness programmes will be a decrease in sick days, reduced premiums via reduced claims costs and an attractive company that believes in the health and well-being of their team.”

business@thenational.ae

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

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.”

Profile of Bitex UAE

Date of launch: November 2018

Founder: Monark Modi

Based: Business Bay, Dubai

Sector: Financial services

Size: Eight employees

Investors: Self-funded to date with $1m of personal savings

COMPANY PROFILE

Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed