The Government is making it mandatory to label the weight and ingredients of bread sold in the country.
The Government is making it mandatory to label the weight and ingredients of bread sold in the country.

Rules to bring your bread into line



Shoppers could soon see improvements in many everyday products including grains and bread, energy drinks and mineral water after the Federal Government approved new standards to weed out inferior goods. Twenty-nine requirements were approved, the official news agency WAM reported. The standards would take effect in October, said Mohammed Badri, the acting director general of the Emirates Authority for Standardisation and Metrology (ESMA).

The move was aimed at ensuring consistent product quality to protect consumers, Mr Badri said. "We want to unify everything, to make sure that everyone is producing the same thing," he said. The rules will affect grain and grain products as well as fish, meat, mineral water, halal foods, energy drinks, pigments and some household electrical products, WAM reported. Some regulations, such as those to do with household electrical products, were updates intended to align existing rules with international standards, Mr Badri said.

But other regulations - covering bread, for example - resulted from consumer complaints submitted to the Ministry of Economy, he said. "People were complaining that the bread they are buying is different," Mr Badri said. "The weight is different, the number [shown] on the plastic is different. It says it is weighing 200g, but it is actually 150g. So, based on that, they asked us to develop regulations."

David Edwards, the managing director of IMES Consulting Group, a market research company based in Dubai, said the standards initiative was a good move. "There should be a certain kind of expectation that if what you pick up looks like a standard Arabic flat bread of 'x' amount, then that is what you should be getting," Mr Edwards said. "And companies should not be able to be doing whatever they have been able to do, pumping air into it or something else, to make it look the same size."

The new regulations could increase costs for some local bakers but were unlikely to affect larger and better established operations, Mr Edwards said. "If a regulator were to introduce something to overcome a perceived problem, it's pretty unlikely to reduce costs," he said. "If there is a problem with the quality of bread ? then in order to improve quality there is going to be an increase in costs."

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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.”

The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5