My philosophy is you have got to live every day as if it is your last. So I enjoy my life, but I do not lose sight of the big picture. I'm not exactly a saver, but at the same time I do not dig myself into debt. Overall, I enjoy life with what I earn.
I moved from Iran in 2005 to study for my MBA at the American University in Dubai. My family offered to support me: pay my tuition, my rent and living expenses. However, I wanted to be independent, so I looked for a job and within two months I secured a position as a junior account executive that paid Dh6,500 a month. Within three months I was promoted to account executive and my salary was boosted about 22 per cent. It was not a big salary, but it allowed me to become more independent. Working full-time meant that I had to delay my graduation for two years since I took fewer courses per period. But I started paying all my expenses; my parents paid the tuition, which came to US$30,000 (Dh110,188).
I moved out of the dorm within a year after starting school and paid my rent because I was lucky to find a flat at Dh45,000 a year. I also bought my first car, a brand new Peugeot 407, for Dh76,000. I had to finance the purchase and many people asked me why I was buying a new car when I was still in school. But I knew I could handle the monthly payments if I made adjustments to my other expenses.
For instance, one good way to cut on your spending is to find activities that do not cost money. So, to occupy my time, I started utilising the university's recreational facilities - the gym, tennis courts, soccer field and the pool - which I had already paid for through my tuition. My plan was to reward myself but not to overindulge. So, from time to time, I went to a good restaurant, about three times a month, or treated myself to a spa. I remained true to my philosophy that you have to enjoy life. I also kept a savings account. My savings were not for investment but to reward myself by going on holiday.
Two years ago, however, I had a change of heart. It happened when I was watching an episode of Sex and The City. It was the one where Carrie wanted to buy an apartment, but didn't have enough money for the down payment. However, she noticed that her shoe inventory in her closet amounted to $40,000. As a shoe lover, I could immediately relate. Her situation really made me realise that I could have shoes and other luxury things, but I was limiting my choices. So I started rethinking my strategy. I was keeping a savings account in addition to my current account, but I kept taking money out of it. It was sometimes running to zero and I had to start replenishing it again to treat myself.
That's when I began to think that I could find myself in Carrie's situation. That's when I decided I had better make some changes to my life soon, especially since, at 28, I had a seven-year head start on Carrie. I also thought that one day, when I left Dubai, I wanted to take with me more than just the experience of living here, the good memories and the education I received.
So I opened a second savings account, one that I would never touch. When I opened it in 2007, I told myself: "No matter what happens you can never touch this money, not even for an emergency."
Around the same time I moved to a new job where I was account director, and my salary grew to a more comfortable level. I set a goal of saving 50 per cent of my income. I had set the goal pretty high, but I managed to put away about 40 per cent regularly.
I don't believe in fixed budgets. Instead, I drew up a yearly plan and, just like public companies, I divided the year into quarters. So if I missed my goal in one quarter, I would try to make up for it during the next period. Ironically, I was saving more money during the months that I expected to have greater expenses because I was cutting out the unnecessary spending. This proved to me that saving really requires discipline, and it's all those little expenses that add up and swallow the contents of your pocketbook.
To be disciplined about the small savings is not easy. Many people come to Dubai thinking they can save a great amount, but they end up having little to show for it. I think that is because people are away from their families and friends, and they become enthralled in shopping. It's a culture that turns even men into habitual shoppers.
I graduated last month. But this was soured when I was made redundant at work the same month. Fortunately, I have enough funds to get me through at least six months.
The layoff didn't force me to substantially alter my lifestyle because I don't want to demoralise myself. I kept my tango-dancing activity. I have cut down on eating out, but I told myself this is for health reasons. I still meet my friends at restaurants at weekends and this helps me to keep my spirits up. I increased my bank balance recently by selling some of my furniture since I could be forced to leave the country if I don't find a job. Need also improves you memory. I collected the university deposits for my dormitory and I also remembered the money I was owed by friends, which I had forgotten about.
I'm 30 years old, I'm healthy and I have energy. I'm thinking of travelling. Just the other day, I was jogging with a friend and she asked why I was even considering travelling during a recession. Well, my thinking is that it is during a recession that you can get better deals on fares and hotels. But without a job, I'm not sure.
* As told to H Michael Jalili
What is the FNC?
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
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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The biog
Favourite car: Ferrari
Likes the colour: Black
Best movie: Avatar
Academic qualifications: Bachelor’s degree in media production from the Higher Colleges of Technology and diploma in production from the New York Film Academy
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