Reel Cinemas at The Springs Souk in Dubai.
Reel Cinemas at The Springs Souk in Dubai.
Reel Cinemas at The Springs Souk in Dubai.
Reel Cinemas at The Springs Souk in Dubai.

UAE cinemas to run at 100% capacity for first time since Covid-19 outbreak


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All cinemas in the UAE have been given the go-ahead to run at full capacity again from this week, more than 18 months after restrictions were first brought in due to Covid-19.

The National Emergency Crisis and Disasters Management Authority on Sunday said each emirate could tighten or amend the rules as it deemed fit.

At the start of the pandemic, cinemas across the country were closed to help stop the spread of the virus.

There is no change to the use of masks, which are required by law in all indoor and outdoor public places nationwide.

The decision to raise capacity in cinemas follows the success of the efforts of the UAE government agencies in combating the spread of Covid-19
Rashid Al Nuaimi,
Ministry of Culture and Youth

When they reopened later in 2020, they had to abide by strict capacity limits to ensure social distancing rules were met, starting at 30 per cent and climbing to 80 per cent by late 2021.

This is the first time cinemas have been allowed to run at full capacity since the virus outbreak was declared a pandemic.

Rashid Al Nuaimi, executive director of the Media Regulatory Office of the Ministry of Culture and Youth, said the UAE had handled the crisis well.

“The decision to raise capacity in cinemas follows the success of the efforts of the UAE government agencies in combating the spread of Covid-19,” he said.

“The strict precautionary measures imposed by the agencies and the community’s adherence to those have reduced the spread of the virus and ensured the health and safety for all.”

He stressed the need to fully adhere to the preventive measures adopted to check the spread of the pandemic, such as mandatory masks and restrictions on large gatherings.

Following lower infection rates, the authority has gradually lifted other Covid-19 restrictions on various events and activities in the country.

Earlier this month, authorities started to lift capacity limits at shopping centres and other public places and will continue to do so throughout February. However, members of the public are still required to wear face masks when out and about.

To date, nearly 95 per cent of people have received two vaccine doses, while a nationwide booster push is well under way.

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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.”

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Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends

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Updated: February 13, 2022, 11:36 AM