Money & Me: Dubai entrepreneur builds his own future

Mazen Omair is the founder and chief executive of Momair Trading, which he launched in 2009. Based in Dubai, it holds the franchise rights for nine Subway stores in the UAE, and is the master franchisee for the US chain Fuzziwig's Candy Factory for the Arabian Gulf region. The former IBM employee, from Saudi Arabia, has lived in the UAE for 13 years. Before establishing his own company, Mr Omair, 49, was the senior vice president for Saudi Arabia's mobile phone distributor. He is based in Dubai.

How did your upbringing shape your attitude towards money?

Growing up in a working class family meant that the value of money was intrinsic to our upbringing. We were taught to evaluate spending decisions and not to spend impulsively.

How much did you get paid for your first job?

I got paid around Dh1,100 a month for my first part-time job as a graduate teaching assistant when I was pursuing a master of science degree in zoology at George Washington University in the US. For my first full-time paid job I was paid Dh7,000 a month as a database programmer at Gestalt Systems.

Are you a spender or saver?

I’m a budgeted spender, meaning that most of my spending is pre-budgeted. So you could say I save to spend on what I consider essential.

What is your most cherished purchase?

It’s not in my nature to develop an emotional attachment to my possessions. I prefer to gift others – putting a smile on someone’s face is priceless. In terms of personal purchases, I most enjoy those which meet all my requirements – be it a car, laptop or clothing.

Have you ever had a month where you feared you could not pay the bills?

My transition from the corporate world to entrepreneurship was turbulent. There were several months when I was concerned about whether I would be able to pay my bills. Fortunately I managed to identify the issue far enough in advance to figure out a practical solution.

Where do you save your money?

With three children in college and a growing business, proper savings are not really feasible. With a proper cash flow forecasting system we were able to save enough money to meet our commitments and plans.

Do you prefer paying by credit card or in cash?

Mainly credit card, but for smaller purchases I prefer cash.

What has been your best investment?

Definitely education – for the family and mine. Although we may not be able to quantify the results in terms of return on investment percentages, you can certainly see its added value.

What do you most regret spending money on?

I have no regrets, only learning experiences. One of my earliest memories was spending US$250 for the “shipping and handling” of an inflatable rubber boat which I mysteriously “won”. What arrived was barely functional and worth less than $50. Lesson learnt – “if it sounds too good to be true, it probably is not true”.

What financial advice would you offer your younger self?

Do not be afraid to take calculated financial risks and implement a scheduled saving programme to fund them.

Do you have a plan for the future?

Yes, and retirement is not a part of it. I truly enjoy building. The plan is to continue to grow our business portfolio to the best of our abilities and of course enjoy ourselves on the way.

If you won Dh1 million, what would you do with it?

I would probably spend 10 per cent to celebrate the moment then set aside the balance for a diversified investment.

What would you raid your savings account for?

I could do it for educational opportunities, unforeseen emergencies and a friend in need.

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The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

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How to wear a kandura

Dos

Wear the right fabric for the right season and occasion
Always ask for the dress code if you don’t know
Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
Wear 100 per cent cotton under the kandura as most fabrics are polyester

Don’ts

Wear hamdania for work, always wear a ghutra and agal
Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying

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Price, base / as tested: Dhxxx
Engine: 5.7L V8
Transmission: Eight-speed automatic
Power: 395hp @ 5,600rpm
Torque: 556Nm @ 3,950rpm
Fuel economy, combined: 12.7L / 100km

The rules on fostering in the UAE

A foster couple or family must:

be Muslim, Emirati and be residing in the UAE
not be younger than 25 years old
not have been convicted of offences or crimes involving moral turpitude
be free of infectious diseases or psychological and mental disorders
have the ability to support its members and the foster child financially
undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially

Bangladesh tour of Pakistan

January 24 – First T20, Lahore

January 25 – Second T20, Lahore

January 27 – Third T20, Lahore

February 7-11 – First Test, Rawalpindi

April 3 – One-off ODI, Karachi

April 5-9 – Second Test, Karachi

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Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.

Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.

Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).

Group E: River Plate, Urawa, Monterrey, Inter Milan.

Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.

Group G: Manchester City, Wydad, Al Ain, Juventus.

Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.

Our legal consultant

Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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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.”