I'm just going to come right out and say it. Banks putting customers in prison for missed payments on their loans or credit cards because, for instance, they lost their jobs defeats the goal of them ever getting back their money.
Instead, lenders in the Emirates should be working with their customers to find a solution that is suitable to both parties, one that will give the person some breathing space and a chance to get back on track financially.
Throwing a person in jail is not going to achieve anything - not for the bank, which will have yet another non-performing loan on its books, nor for the customer, who could languish in prison for years because they can't pay back the money they owe.
Take Kerrin Matthey. Hers is a story like millions of other expatriates who came to the UAE during the boom times of 2006 and 2007, many of whom left their loved ones to bring their skills and experience to help build a country, to give their children and families a better life because they could work hard and save even harder.
But Ms Matthey's story is also one where it all went wrong after she invested in the Dubai property market back in 2008. Just like tens of thousands of other investors who have lost their life savings on developments that never materialised or have been delayed by years. Not only has she lost it all, she is also facing jail.
But, unlike many others in a similar situation, she has chosen to stay - rather than fleeing in the middle of the night for the safety of her home country - to try to put things right.
"I've been told to leave the country, but I won't because I'm not like that," says the widow and mother of two.
Ms Matthey came to the UAE from the United Kingdom nearly seven years ago to work as an interior designer for a large property management company in Dubai. She did the interiors for many of its showroom apartments, as well as travelled around the region to work on other design projects for her firm.
She worked hard, sometimes seven days a week, but she was able to save. She wasn't your typical high-flying, overpaid expat. She was earning Dh32,000 (US$8,711) a month - a large salary for some; possibly average for others - but far from those ridiculously high wages of the boom days.
By the time 2008 came around, Ms Matthey had saved enough that she could consider putting down a deposit for an apartment in an off-plan development in Dubai that had been recommended by a colleague.
"He said it was a 30 per cent down payment and nothing more until completion," she says. "That appealed to me because I didn't have to worry about a mortgage."
She had to borrow from two banks to supplement her deposit - and this was her first mistake - but it was a dream that she'd been working towards for a couple of years and it was in sight. She also had a good job and, more importantly, she could afford the repayments, support her children back in the UK and still live a decent life here.
She decided on a two-bedroom, 1,863-square-foot duplex at a total cost of Dh1,890,945. So far, she has paid Dh567,283 to the developer.
Ms Matthey's contract with the developer states an "anticipated" completion date of December 31, 2009. But, nearly two-and-a-half years later, she says she is still waiting for construction to start.
However, the developer's spokesman insists that construction has started and the completion date is "expected within 14 months".
Despite the delay, Ms Matthey had her job. And while she'd rather have been in her new home and just paying her loans off rather than also forking out for rent, she was staying above water.
But then it all fell apart. She was made redundant and stopped working last November.
She contacted one of her banks, the Abu Dhabi-based First Gulf Bank (FGB), in December to initiate talks in the hope of restructuring the loan she had with them. She says her request was refused. She continued using her savings to meet her loan repayments. She was looking for a job, but she knew that if she couldn't find one fast, her money would run out.
And it did. She says she was still trying to talk to FGB about a restructuring. The bank's collection department in Dubai was still saying no.
After three years and paying off Dh180,000 of the Dh250,000 loan, she missed her first payment in February. She missed her next payment in March. She was able to scrape enough money together to make a partial payment of Dh3,400 on April 12. Now, at the end of May, she's about to miss her third full payment.
Her other loan, also for Dh250,000, with Dubai Bank has been paid on time every month since she lost her job because her end-of-service gratuity of Dh44,000 was deposited in her account with the lender. However, that money runs out at the end of this month.
On April 19, she received notification from FGB that it was recalling her loan and she had to settle the total amount of Dh71,200 still owing. That figure has since increased to Dh71,534.24, according to FGB.
A spokesperson for FGB says Ms Matthey is more than 90 days past due on her payments and her loan is a "non-performing asset as per Central Bank policies".
"We have spoken to her on several occasions trying to give her a workable solution," the FGB spokesperson says. "However, she is not willing to pay more than Dh1,000 per month."
Ms Matthey says Dh1,000 is all she can afford until she finds a job and that she has been receiving threatening phone calls from FGB's collections department in Dubai. She says they told her that she'd never work here again. That she'd go to jail. That they were screaming at her to give them back "my money".
"I haven't been able to get a job and I've been trying very hard," Ms Matthey says. "But this is actually very draining on me; FGB has been contacting me on a weekly basis."
She says the stress of the calls is taking a toll. And she finds it difficult to keep her composure when she talks about it. And no wonder. Nearly two weeks ago, she received a phone call from Al Naif police asking her to come down to the station because a complaint had been lodged against her.
"I was told to bring my passport and I went because I was scared," she says.
"I got there and said to them that it can only be from First Gulf Bank. And it was. But they said I was at the wrong police station, so they handcuffed me and put me in the back of a van and took me to Muraqqabat.
"I was crying. I was handcuffed."
One of her friends lodged her passport with the police as surety. Ms Matthey also surrendered her passport and she was allowed to go home.
But she was back at Al Muraqqabat Police Station last Sunday because her friend was going on holiday and needed her passport.
"They told me I had to go to prison now. But then they asked me how much I owed and said I had to see the prosecutor. I was lucky because I had with me FGB's recall notice, which said I only owed two payments.
"I showed it to the prosecutor and he said Dh19,950 wasn't enough to put me in jail; that I could go, but they would keep my passport.
"It was just luck - it was a weekday and the prosecutor was there."
Ms Matthey is waiting for her court date to be set. In the meantime, she's still trying to find a job - and a way to pay pack her loans.
One option is the cancellation of the development she invested in. This is unlikely, however, because - despite the construction delays - it can only be done by the Real Estate Regulatory Agency.
Under law, the developer would then have to return the money to the project's investors. She says she'd use this money to pay the banks.
"I don't want pity; I just want what's right," she says. "I'm not a victim and I'm here to pay my dues. But I am sure the right thing will be done by a person who has the authority."
fglover@thenational.ae
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
The specs
Engine: 6.2-litre V8
Transmission: ten-speed
Power: 420bhp
Torque: 624Nm
Price: Dh325,125
On sale: Now
RESULTS
6.30pm: Emirates Holidays Maiden (TB) Dh 82,500 (Dirt) 1,900m
Winner: Lady Snazz, Richard Mullen (jockey), Satish Seemar (trainer).
7.05pm: Arabian Adventures Maiden (TB) Dh 82,500 (D) 1,200m
Winner: Zhou Storm, Connor Beasley, Ali Rashid Al Raihe.
7.40pm: Emirates Skywards Handicap (TB) Dh 82,500 (D) 1,200m
Winner: Rich And Famous, Royston Ffrench, Salem bin Ghadayer.
8.15pm: Emirates Airline Conditions (TB) Dh 120,000 (D) 1,400m
Winner: Rio Angie, Sam Hitchcock, Doug Watson.
8.50pm: Emirates Sky Cargo (TB) Dh 92,500 (D) 1,400m
Winner: Kinver Edge, Richard Mullen, Satish Seemar.
9.15pm: Emirates.com (TB) Dh 95,000 (D) 2,000m
Winner: Firnas, Xavier Ziani, Salem bin Ghadayer.
Stage results
1. Julian Alaphilippe (FRA) Deceuninck-QuickStep 4:39:05
2. Michael Matthews (AUS) Team BikeExchange 0:00:08
3. Primoz Roglic (SLV) Jumbo-Visma same time
4. Jack Haig (AUS) Bahrain Victorious s.t
5. Wilco Kelderman (NED) Bora-Hansgrohe s.t
6. Tadej Pogacar (SLV) UAE Team Emirates s.t
7. David Gaudu (FRA) Groupama-FDJ s.t
8. Sergio Higuita Garcia (COL) EF Education-Nippo s.t
9. Bauke Mollema (NED) Trek-Segafredo s.t
10. Geraint Thomas (GBR) Ineos Grenadiers s.t
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.”
Results
Stage 7:
1. Caleb Ewan (AUS) Lotto Soudal - 3:18:29
2. Sam Bennett (IRL) Deceuninck-QuickStep - same time
3. Phil Bauhaus (GER) Bahrain Victorious
4. Michael Morkov (DEN) Deceuninck-QuickStep
5. Cees Bol (NED) Team DSM
General Classification:
1. Tadej Pogacar (SLO) UAE Team Emirates - 24:00:28
2. Adam Yates (GBR) Ineos Grenadiers - 0:00:35
3. Joao Almeida (POR) Deceuninck-QuickStep - 0:01:02
4. Chris Harper (AUS) Jumbo-Visma - 0:01:42
5. Neilson Powless (USA) EF Education-Nippo - 0:01:45
Aggro%20Dr1ft
%3Cp%3EDirector%3A%20Harmony%20Korine%3Cbr%3EStars%3A%20Jordi%20Molla%2C%20Travis%20Scott%3Cbr%3ERating%3A%202%2F5%3C%2Fp%3E%0A
Diriyah%20project%20at%20a%20glance
%3Cp%3E-%20Diriyah%E2%80%99s%201.9km%20King%20Salman%20Boulevard%2C%20a%20Parisian%20Champs-Elysees-inspired%20avenue%2C%20is%20scheduled%20for%20completion%20in%202028%3Cbr%3E-%20The%20Royal%20Diriyah%20Opera%20House%20is%20expected%20to%20be%20completed%20in%20four%20years%3Cbr%3E-%20Diriyah%E2%80%99s%20first%20of%2042%20hotels%2C%20the%20Bab%20Samhan%20hotel%2C%20will%20open%20in%20the%20first%20quarter%20of%202024%3Cbr%3E-%20On%20completion%20in%202030%2C%20the%20Diriyah%20project%20is%20forecast%20to%20accommodate%20more%20than%20100%2C000%20people%3Cbr%3E-%20The%20%2463.2%20billion%20Diriyah%20project%20will%20contribute%20%247.2%20billion%20to%20the%20kingdom%E2%80%99s%20GDP%3Cbr%3E-%20It%20will%20create%20more%20than%20178%2C000%20jobs%20and%20aims%20to%20attract%20more%20than%2050%20million%20visits%20a%20year%3Cbr%3E-%20About%202%2C000%20people%20work%20for%20the%20Diriyah%20Company%2C%20with%20more%20than%2086%20per%20cent%20being%20Saudi%20citizens%3Cbr%3E%3C%2Fp%3E%0A
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Singham Again
Director: Rohit Shetty
Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone
Rating: 3/5
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
MATCH DETAILS
Chelsea 4
Jorginho (4 pen, 71 pen), Azpilicueta (63), James (74)
Ajax 4
Abraham (2 og), Promes (20). Kepa (35 og), van de Beek (55)
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Tree of Hell
Starring: Raed Zeno, Hadi Awada, Dr Mohammad Abdalla
Director: Raed Zeno
Rating: 4/5
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Abu Dhabi Sustainability Week
AL%20BOOM
%3Cp%20style%3D%22text-align%3Ajustify%3B%22%3E%26nbsp%3B%26nbsp%3B%26nbsp%3BDirector%3AAssad%20Al%20Waslati%26nbsp%3B%3C%2Fp%3E%0A%3Cp%20style%3D%22text-align%3Ajustify%3B%22%3E%0DStarring%3A%20Omar%20Al%20Mulla%2C%20Badr%20Hakami%20and%20Rehab%20Al%20Attar%0D%3Cbr%3E%0D%3Cbr%3EStreaming%20on%3A%20ADtv%0D%3Cbr%3E%0D%3Cbr%3ERating%3A%203.5%2F5%0D%3Cbr%3E%0D%3Cbr%3E%3C%2Fp%3E%0A
The Africa Institute 101
Housed on the same site as the original Africa Hall, which first hosted an Arab-African Symposium in 1976, the newly renovated building will be home to a think tank and postgraduate studies hub (it will offer master’s and PhD programmes). The centre will focus on both the historical and contemporary links between Africa and the Gulf, and will serve as a meeting place for conferences, symposia, lectures, film screenings, plays, musical performances and more. In fact, today it is hosting a symposium – 5-plus-1: Rethinking Abstraction that will look at the six decades of Frank Bowling’s career, as well as those of his contemporaries that invested social, cultural and personal meaning into abstraction.
Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
The specs
Engine: 2.0-litre 4-cyl
Power: 153hp at 6,000rpm
Torque: 200Nm at 4,000rpm
Transmission: 6-speed auto
Price: Dh99,000
On sale: now
Getting%20there
%3Cp%3EGiven%20its%20remote%20location%2C%20getting%20to%20Borneo%20can%20feel%20daunting%20even%20for%20the%20most%20seasoned%20traveller.%20But%20you%20can%20fly%20directly%20from%20Kuala%20Lumpur%20to%20Sandakan%20and%20Sepilok%20is%20only%20half%20an%20hour%20away%20by%20taxi.%20Sandakan%20has%20plenty%20of%20accommodation%20options%2C%20while%20Sepilok%20has%20a%20few%20nature%20lodges%20close%20to%20the%20main%20attractions.%3C%2Fp%3E%0A
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
if you go
The flights
Etihad and Emirates fly direct to Kolkata from Dh1,504 and Dh1,450 return including taxes, respectively. The flight takes four hours 30 minutes outbound and 5 hours 30 minute returning.
The trains
Numerous trains link Kolkata and Murshidabad but the daily early morning Hazarduari Express (3’ 52”) is the fastest and most convenient; this service also stops in Plassey. The return train departs Murshidabad late afternoon. Though just about feasible as a day trip, staying overnight is recommended.
The hotels
Mursidabad’s hotels are less than modest but Berhampore, 11km south, offers more accommodation and facilities (and the Hazarduari Express also pauses here). Try Hotel The Fame, with an array of rooms from doubles at Rs1,596/Dh90 to a ‘grand presidential suite’ at Rs7,854/Dh443.
PAKISTAN v SRI LANKA
Twenty20 International series
Thu Oct 26, 1st T20I, Abu Dhabi
Fri Oct 27, 2nd T20I, Abu Dhabi
Sun Oct 29, 3rd T20I, Lahore
Tickets are available at www.q-tickets.com
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
