Security concerns and compatibility of different platforms are obstacles to the mass take-up of connected devices in the home, UAE retailers said.
Currently, the success of the Internet of Things (IoT) has been limited to applications in the health and defence sectors even as Microsoft, Intel, Cisco and other large tech companies develop new uses and applications for connected devices.
In the US, the online retailer Amazon has teamed up with appliance makers to launch an electronic “button” called Dash, hoping to get consumers excited about their Whirlpool washing machine’s ability to independently buy more detergent when running low.
At the Gitex shopper event in Dubai last month, vendors displayed lifestyle products for the first time, hoping to tap into the potential retail trend.
Makook, a smart living platform, held its global launch at the event, hoping to spark consumer interest in the technology.
“We have launched a box that can talk to most other devices in your home regardless of the platform they run on,” said John Larson, product director of content for Makook.
At a cost of about Dh99 per month depending on the package, the service offers movies, music and entertainment, he said. Cameras hooked up throughout the home can be accessed from mobile devices.
“That may be a baby monitor while the babysitter is there, or you can alter the lights or the AC when you need to. The fridge will order the milk through our box as soon as they invent that fridge,” said Mr Larson.
According to Megha Kumar, senior research manager, IDC MEA, security will be the most critical issue regarding connected devices in the home.
“However, there are other issues that organisations and governments will need to deal with such as the amount of data being generated,” said Ms Kumar. “Imagine the data growth and the investments that will need to be made around data privacy. Will organisations have all the necessary infrastructure in place to deal with this kind of information and of course relevancy? What are you going to do with this data?”
Ashish Panjabi, chief operating officer at the retailer Jacky’s Electronics, said that it would be two years before the technology was ready for the mass consumer market.
“Open systems cannot be defended adequately yet. I think there will be a lot of upgrades needed to ensure the security of the devices,” he said. “The days when your fridge realises that you need milk and then orders it for you is still some way off.”
Culture is also an issue, according to Mr Panjabi.
“IoT requires openness from its users,” he said. “Millennials who are happy to live their life on Facebook and other social media may not even consider the information that will be in the public domain but other generations may not be so willing to have information out there.”
Compatibility is also a potential hurdle for consumers grappling with a wide number of brands on the market.
“The biggest problem is the single operating system against multiple gadgets,” said Neelesh Bhatnagar, chief executive of the retailer Emax. “We are closely monitoring the situation with IoT and it is part of our strategic planning to accommodate those trends as soon as they can become part of our eco-system. It is definitely not a gimmick, it will be here sooner than you think.”
ascott@thenational.ae
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Tentative schedule of 2017/18 Ashes series
1st Test November 23-27, The Gabba, Brisbane
2nd Test December 2-6, Adelaide Oval, Adelaide
3rd Test Dcember 14-18, Waca, Perth
4th Test December 26-30, Melbourne Cricket Ground, Melbourne
5th Test January 4-8, Sydney Cricket Ground, Sydney
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.”
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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Watch live
The National will broadcast live from the IMF on Friday October 13 at 7pm UAE time (3pm GMT) as our Editor-in-Chief Mina Al-Oraibi moderates a panel on how technology can help growth in MENA.
You can find out more here
AUSTRALIA SQUADS
ODI squad: Aaron Finch (captain), Ashton Agar, Alex Carey, Pat Cummins, Josh Hazlewood, Marnus Labuschagne, Mitchell Marsh, Glenn Maxwell, Kane Richardson, Steve Smith, Mitchell Starc, Matthew Wade, David Warner, Adam Zampa
Twenty20 squad: Aaron Finch (captain), Sean Abbott, Ashton Agar, Alex Carey, Pat Cummins, Mitchell Marsh, Glenn Maxwell, Jhye Richardson, Kane Richardson, Steve Smith, Mitchell Starc, Matthew Wade, David Warner, Adam Zampa
