Consumers in the region have been spending up to Dh100,000 on Sony's 84-inch, next-generation 4K televisions to mark the region as one of the fastest growth areas for the company.
Sales in the Middle East and Africa were the second highest for the company after its home market of Japan.
The region leads Europe and the United States for sales of 4K screens, which boast four times the resolution of full high-definition quality.
"Sales greatly exceeded expectations, we have sold the highest number of 4K TVs than any of our competitors," said Hiroyasu Sugiyama, Sony's managing director for the region. The manufacturer wants to sell 1,000 of the 84-inch models by the end of the year. Saudi Arabia, UAE and Qatar recorded the strongest sales in the region.
Sharp has also enjoyed increased sales of large-screen televisions in the region with about 110 per cent growth of its 60 to 90-inch screens last year over 2011.
Last year 800,000 television sets were sold in the UAE, of which 17 per cent were smart TVs and 15 per cent were 3D sets.
"The income of the people in the UAE is higher than the rest of the Middle East, we have a good mix of nationalities, local Emiratis and expats who understand the value of good quality products.
"Also we have very strong retail coverage using Jumbo stores and other retailers," said Mr Sugiyama.
Now Sony is targeting a wider customer base with the launch in Dubai of two new models - a 65-inch and 55-inch model, which will be in stores by June 20. They will be priced at a more modest Dhs29,999 and Dhs19,999, respectively.
"We realised the 84-inch TV is not for everyone, so we are introducing 4K to a much wider customer base," said Mr Sugiyama. "We expect to sell three to five times as many of these new models."
4K technology is set to replace full-HD imaging within the next few years. Already, films such as The Amazing Spider-manand After Earth have been shot using the new technology.
But analysts are less than optimistic about global 4K TV sales.
"Longer-term 4K will start to grow, but it will still be limited by the fact that most homes don't have rooms big enough to accommodate the required screen size," said Adam Thomas, media research manager at Informa Telecoms and Media.
Sony's global operations have struggled recently. The company's chief executive, Kazuo Hirai, last month outlined a revival plan for the company with a renewed focus on smartphones.
"Regionally our focus is on smartphones and the growing TV market. We expect faster growth for smartphones, with double digit growth. The industry is expected to grow by 20-30 per cent next year," said Mr Sugiyama.
The company expects global smartphone sales to rise by more than a quarter to 42 million units through the end of March next year. It is vying to be one of the three biggest makers, against competition from the likes of China's Huawei and South Korea's LG, which makes Google's flagship Nexus smartphones.
By the end of the revival plan, Sony's core electronics businesses - camera, mobile and gaming - are meant to account for 65 per cent of revenues and 80 per cent of operating profit.
thamid@thenational.ae
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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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Tuesday's fixtures
Kyrgyzstan v Qatar, 5.45pm
THE LIGHT
Director: Tom Tykwer
Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger
Rating: 3/5
Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
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- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
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Killing of Qassem Suleimani
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UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
