I took out a bank loan for Dh270,000 six months ago to build a new house in India. My monthly instalments are around Dh6,528. I work as a quantity surveyor in Dubai, earning Dh14,030 but I am thinking about changing job for a monthly salary of Dh28,000. Currently the outstanding balance on the loan is Dh224,962. With two month’s leave salary, a gratuity and last month’s salary, my final settlement will be around Dh45,000. If the company gives me that final settlement, I understand the bank will then immediately freeze my bank account and deduct this amount from my overall outstanding, in other words Dh230,000 minus Dh45,000, which will leave me with a revised outstanding amount of Dh185,000. Once that happens, should the bank revise my monthly instalment based on the revised outstanding amount? Or could I use that final settlement amount for my own personal use instead and still pay the same instalment until the end of the existing agreement? KT, Dubai
Debt Panellist 1: Philip King, head of retail banking at Abu Dhabi Islamic Bank
If you are confident you can secure a new job in which you will receive a near 100 per cent increase in salary, then you should certainly pursue this opportunity. Make sure to notify your bank of your change in employment, confirming that your salary will continue to be credited to the same account. You should also share your letter of employment or contract with your bank once you have received it. Based on this, you should be able to discuss the usage of your end of service benefits towards your loan.
Assuming you are not leaving the country and will still be employed in the UAE, this should not be a problem and your instalments would continue as before. While your schedule of repayments will remain the same, depending on your personal circumstances and current financing requirements, you should certainly consider putting a portion of your final settlement towards the balance of the loan.
Making an early lump repayment will enable you to make significant headway into the Dh225,000 you owe the bank, bringing forward the date in which you are debt free.
________
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Debt panellist 2: Keren Bobker, an independent financial adviser with Holborn Assets
It is common for banks to freeze accounts when notified that someone is leaving a job. This is mainly to stop debts accruing when there may not be a future income to repay them but the issue of retaining a customer’s money is quite a contentious area. It is still common practice for banks to take a person’s final salary payment and end of service gratuity payment and apply this to reduce an outstanding debt - even if a person is shortly to start a job. For the bank, it ensures the customer will not miss any loan repayments.
I understand that in 2012 the UAE Central Bank issued a statement advising that no bank in UAE has the right to seize a customer's money unless they had defaulted on three successive loan instalments. This means that the bank should not use money paid to the current account to offset any debts and that it should remain in the account until the bank unfreezes the account.
This generally happens when they see a copy of a new residency visa or a salary payment is made from the new job. What should happen is that once the account is unfrozen, you will have access to your money and will continue as normal.
In practice many banks are going against the UAE Central Bank directive and taking money to reduce debt. If that happens you have two options: either to accept this and reschedule the remaining debts, or if you prefer to manage the situation yourself to make a formal complaint to the UAE Central Bank. The details to do so are on their website at www.centralbank.ae
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Read more:
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Debt Panellist 3: Ambareen Musa, founder and chief executive of Souqalmal.com
Congratulations, that is a big jump in salary. This will make it so much easier for you to manage your debt commitment.
Considering that you have a loan with your primary bank, the bank will most likely freeze the funds in your account once the end of service benefits reflect in the account. But do not jump to the conclusion that the bank will automatically deduct this amount and adjust it towards the outstanding debt.
You mentioned that you are thinking about switching jobs, so with some time still in your hands, you must approach your bank to enquire about their policy with regard to dealing with change in the accountholder's employment status. The bank may temporarily freeze your account to carry out a check of your financial position and whether you have the resources to pay off your loan. Understanding the protocol involved will help you stay prepared for any action that the bank might take.
You should also request for information on how to unblock or unfreeze the bank account and the documentation required to do so - such as proof of your new employment and income, along with the processing time this will take.
In the meanwhile, you should also consider restructuring the terms of your loan repayment, if you feel you can manage to pay higher monthly installments towards your loan. Not only will this reduce the time to full repayment, but it will also help lower the total interest payable.
The Debt Panel is a weekly column to help readers tackle their debts more effectively. If you have a question for the panel, write to pf@thenational.ae
Schedule for Asia Cup
Sept 15: Bangladesh v Sri Lanka (Dubai)
Sept 16: Pakistan v Qualifier (Dubai)
Sept 17: Sri Lanka v Afghanistan (Abu Dhabi)
Sept 18: India v Qualifier (Dubai)
Sept 19: India v Pakistan (Dubai)
Sept 20: Bangladesh v Afghanistan (Abu Dhabi) Super Four
Sept 21: Group A Winner v Group B Runner-up (Dubai)
Sept 21: Group B Winner v Group A Runner-up (Abu Dhabi)
Sept 23: Group A Winner v Group A Runner-up (Dubai)
Sept 23: Group B Winner v Group B Runner-up (Abu Dhabi)
Sept 25: Group A Winner v Group B Winner (Dubai)
Sept 26: Group A Runner-up v Group B Runner-up (Abu Dhabi)
Sept 28: Final (Dubai)
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NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
UAE currency: the story behind the money in your pockets
HWJN
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Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
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The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
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
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UAE currency: the story behind the money in your pockets
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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
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%3Cp%3EEncourage%20innovation%20in%20the%20metaverse%20field%20and%20boost%20economic%20contribution%3C%2Fp%3E%0A%3Cp%3EDevelop%20outstanding%20talents%20through%20education%20and%20training%3C%2Fp%3E%0A%3Cp%3EDevelop%20applications%20and%20the%20way%20they%20are%20used%20in%20Dubai's%20government%20institutions%3C%2Fp%3E%0A%3Cp%3EAdopt%2C%20expand%20and%20promote%20secure%20platforms%20globally%3C%2Fp%3E%0A%3Cp%3EDevelop%20the%20infrastructure%20and%20regulations%3C%2Fp%3E%0A
How Beautiful this world is!
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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.”