Tourists from South Korea shopping at the Souk Madinat Jumeirah. The malls in the emirate are working closely with Dubai Festivals and retail establishments to attract international shoppers. Jaime Puebla / The National
Tourists from South Korea shopping at the Souk Madinat Jumeirah. The malls in the emirate are working closely with Dubai Festivals and retail establishments to attract international shoppers. Jaime PuShow more

Dubai Summer Surprises: Shopping festival eyes China and Russia as countdown begins



DUBAI // Big-spending tourists from Russia, China and Saudi Arabia are being targeted by organisers of an annual shopping festival.
This year's Dubai Summer Surprises hopes to tap into the almost Dh532 billion spent by Chinese and Russian tourists worldwide last year.
Both countries are ranked in the top five of the world's biggest tourism shoppers.
"While residents have always been our core audience, we have also witnessed an increase in tourists, in particular from three key markets: China, Russia and Saudi Arabia," said Hussain Moosa, associate director of Majid Al Futtaim Properties, which owns Deira City Centre, Mirdif City Centre and Mall of the Emirates in Dubai.
"These audiences have tremendous spending power and a penchant for luxury shopping."
The emirate enjoyed a 54 per cent rise in Russian visitors last year, according to the Department of Tourism and Commerce Marketing. There was also a 28 per cent increase in tourists from China, and a 30 per cent rise from Saudi Arabia.
About 20 per cent of all visitors to Mall of the Emirates are tourists, with 15 per cent heading to Deira City Centre, Mr Moosa said.
The malls are working closely with Dubai Festivals and Retail Establishments, which is organising the month-long event from June 7, to attract international shoppers.
"We have run campaigns in the GCC, India, China and Russia and we are expecting visitors from these countries to visit during the festival," said a spokesman. "The message we are trying to get across to people in other countries is that Dubai is the best place to come in summer.
"Although it is hotter here during the summer months, everywhere is air-conditioned and when you compare that to some countries in the region it is very attractive."
Mr Moosa said malls had enjoyed double-digit growth in footfall and sales during the festival in previous years.
"We anticipate strong results in terms of sales and footfall this year," Mr Moosa said.
"Last year, our three shopping malls in Dubai witnessed a 10 per cent increase in traffic and 15 per cent increase in sales.
"European travellers looking to the Middle East have shifted their travel preferences to Dubai, attracted to our stable economy and political climate."
Hotels are offering deals to encourage visitors. The Fairmont hotel on Palm Jumeirah has a number of deals to attract families, with 50 per cent discounts on second rooms and 30 per cent off suites.
"The majority of guests we expect to welcome will be from the GCC as well as western Europe," said Martin van Kan, the hotel's general manager.
Shoppers can win cash or flights throughout the festival. Weekly prizes of Dh250,000 are up for grabs with every Dh300 spent at one of Majid Al Futtaim's malls, while visitors to Mall of the Emirates could win a first-class return trip to London, Paris or New York with a stay in five-star accommodation if they spend Dh600 or more.
Dubai Summer Surprises was launched in 1998 and attracted 4 million visitors in 2011. It was originally two months long but has been shortened because Ramadan now falls during the summer.
nhanif@thenational.ae

COMPANY PROFILE
Name: Akeed

Based: Muscat

Launch year: 2018

Number of employees: 40

Sector: Online food delivery

Funding: Raised $3.2m since inception 

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 National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

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MATCH INFO

Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid

When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid

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COMPANY PROFILE

Company name: Letstango.com

Started: June 2013

Founder: Alex Tchablakian

Based: Dubai

Industry: e-commerce

Initial investment: Dh10 million

Investors: Self-funded

Total customers: 300,000 unique customers every month

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In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013