The sheer logistics of Abdulkarim Hannawi’s job sound daunting: to prepare and serve 150,000 meals every day, in some cases transport them to hundreds of sites around the UAE, and provide a healthy and varied diet to thousands of demanding customers.
Mr Hannawi (“call me Abed”) is not some kind of super chef with unnatural powers. He is the chief executive of Abela & Co, one of the UAE’s biggest catering firms, and he has 3,200 dedicated employees to help him provide the daily bread for a small army of industrial workers, hotel employees, students, schoolchildren and government employees.
Of those 150,000 meals, 65 per cent are produced at the customers’ in-house catering facilities, the rest prepared in Abela’s “central kitchens” dotted strategically round the country.
“Our mission has been clear since day one: long term partnerships with customers, food safety, and our employees,” he says, speaking at the Abela HQ in Deira, in the heart of Dubai’s old commercial zone, which reminds you there is bustling business life outside the financial areas and the free zones.
The company was founded in the UAE in 1967 by the Lebanese native Albert Abela, mainly to serve customers on a comparatively small scale in the Gulf, Lebanon and Palestinian Territories. It was eventually bought by Emiratis, who now own it 100 per cent.
The owners are among the most illustrious of Dubai’s elite: Sheikha Sheikha bin Saeed Al Maktoum, a leading member of Dubai’s ruling family, is a big shareholder; as is Khalifa Juma Al Nabooda, head of the eponymous family trading group which describes Abela as its “partner.”
Those are demanding taskmaster shareholders. Of Mr Al Nabooda, who is also the chairman of Abela, Mr Hannawi says: “I wouldn’t describe him as hands-on, but he takes a close interest in the affairs of the company. If he hears that a student at one of the colleges finds something wrong with the food selection we provide, he will let me know.”
Mr Hannawi, Lebanese-born and US-educated, was working for a catering business in America when Abela came knocking at the door, bought the US company and moved him back to the Middle East. “I wanted to be closer to my family in Lebanon back then, and Dubai was the perfect place to be,” he explains.
At the beginning, the customers were in the oil services and construction sectors. “But we don’t do much construction now as conditions can be challenging. Food has to be prepared and delivered in some demanding circumstances – location, climate – and we will not compromise on safety or standards,” says Mr Hannawi.
Over the years, the client base moved to the broad corporate spree, supplying food to the likes of Nestlé, Petrofac and Mars. Microsoft in Dubai is now a big customer. “Basically blue and white-collar catering,” he says.
But then, as Dubai’s economy took off towards the end of the 1990s, Abela spotted a growth opportunity in the schools and universities that were springing up, largely to satisfy the growing expat populations, and in hotels, which were opening at a fast rate and whose staff needed feeding.
That presented another challenge. “In the early days of our hotels business, it was easy: mainly Indian and Filipino staff so the menus were simple. Now the different nationalities demand more variety on the menus. We’re preparing a lot of African menus at the moment,” he says.
The three most popular menus, however, remain Indian, Arabic and “continental” (Euro-American) in that order.
A step change in the business took place via the company’s relationship with Ikea. Abela had been supplying staff at the global Swedish retailer’s branch in Dubai for some time, but it obviously liked what it got, and signed up Abela to supply its stores in Abu Dhabi, Doha and Cairo. It was Abela’s first serious move outside its traditional markets. “Ikea is becoming one of our biggest and most important customers,” Mr Hannawi says.
That geographic diversification coincided with a move into different businesses in the UAE: retail and franchising. Now Abela has deals with the big US franchise Sandella Flatbread Cafe, which has a presence in universities, corporates, hospitals and community malls across the UAE.
Abela also runs its own brand retail outlets, like Bean There, Baydar and Red Apron, in malls and other retail spaces.
“The other reason for this diversification is cash flow. Most of our business used to be on credit, but now 75 per cent is cash. Franchises are more profitable and better for cash flow,” he says.
Abu Dhabi had always been considered a core market, but two years ago Abela decided it had to up its game in the capital and opened a central kitchen in the capital. Now it serves 22,000 meals a day in the capital to customers like Ikea, the UAE foreign ministry and Sky News.
The corporate style is for slow and gradual expansion. More foreign business will be considered when regarded as sensible, and the build-up to Expo 2020, which must surely produce big opportunities in catering, is careful and deliberate. “I’ve put a strategy paper to the board to see how we can exploit it. There may be some further diversification, perhaps into hospitality, but it is at an early stage,” says Mr Hannawi.
Finance is relatively simple. Abela’s ownership gives it excellent bank relationships, and the company is “financially self-sufficient”, says Mr Hannawi. There are no plans, and no consideration given, to an initial public offering. “No need,” he says.
Other Dubai businessmen – notably Hussain Sajwani of Damac – have made fortunes in catering to the military in often hostile situations, but Abela’s style is different.
“I visited Iraq in 2003, but I felt it was too risky, and the board agreed. Our employees are the most important thing,” Mr Hannawi emphasises.
fkane@thenational.ae
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Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
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
Engine: Long-range single or dual motor with 200kW or 400kW battery
Transmission: Single-speed automatic
Max touring range: 620km / 590km
Price: From Dh250,000 (estimated)
COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
Sun jukebox
Rufus Thomas, Bear Cat (The Answer to Hound Dog) (1953)
This rip-off of Leiber/Stoller’s early rock stomper brought a lawsuit against Phillips and necessitated Presley’s premature sale to RCA.
Elvis Presley, Mystery Train (1955)
The B-side of Presley’s final single for Sun bops with a drummer-less groove.
Johnny Cash and the Tennessee Two, Folsom Prison Blues (1955)
Originally recorded for Sun, Cash’s signature tune was performed for inmates of the titular prison 13 years later.
Carl Perkins, Blue Suede Shoes (1956)
Within a month of Sun’s February release Elvis had his version out on RCA.
Roy Orbison, Ooby Dooby (1956)
An essential piece of irreverent juvenilia from Orbison.
Jerry Lee Lewis, Great Balls of Fire (1957)
Lee’s trademark anthem is one of the era’s best-remembered – and best-selling – songs.
Places to go for free coffee
- Cherish Cafe Dubai, Dubai Investment Park, are giving away free coffees all day.
- La Terrace, Four Points by Sheraton Bur Dubai, are serving their first 50 guests one coffee and four bite-sized cakes
- Wild & The Moon will be giving away a free espresso with every purchase on International Coffee Day
- Orange Wheels welcome parents are to sit, relax and enjoy goodies at ‘Café O’ along with a free coffee
THE BIO
Bio Box
Role Model: Sheikh Zayed, God bless his soul
Favorite book: Zayed Biography of the leader
Favorite quote: To be or not to be, that is the question, from William Shakespeare's Hamlet
Favorite food: seafood
Favorite place to travel: Lebanon
Favorite movie: Braveheart
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Washmen Profile
Date Started: May 2015
Founders: Rami Shaar and Jad Halaoui
Based: Dubai, UAE
Sector: Laundry
Employees: 170
Funding: about $8m
Funders: Addventure, B&Y Partners, Clara Ventures, Cedar Mundi Partners, Henkel Ventures
APPLE IPAD MINI (A17 PRO)
Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits
Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine
Storage: 128/256/512GB
Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4
Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps
Biometrics: Touch ID, Face ID
Colours: Blue, purple, space grey, starlight
In the box: iPad mini, USB-C cable, 20W USB-C power adapter
Price: From Dh2,099
MATCH INFO
Uefa Champions League semi-finals, first leg
Liverpool v Roma
When: April 24, 10.45pm kick-off (UAE)
Where: Anfield, Liverpool
Live: BeIN Sports HD
Second leg: May 2, Stadio Olimpico, Rome
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3ESmartCrowd%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2018%0D%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3ESiddiq%20Farid%20and%20Musfique%20Ahmed%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%20%2F%20PropTech%0D%3Cbr%3E%3Cstrong%3EInitial%20investment%3A%20%3C%2Fstrong%3E%24650%2C000%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%3C%2Fstrong%3E%2035%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3ESeries%20A%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EVarious%20institutional%20investors%20and%20notable%20angel%20investors%20(500%20MENA%2C%20Shurooq%2C%20Mada%2C%20Seedstar%2C%20Tricap)%3C%2Fp%3E%0A
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
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
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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.”
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
