DuangDy was praised in this year's Michelin Guide, merely weeks after launching. Photo: DuangDy
DuangDy was praised in this year's Michelin Guide, merely weeks after launching. Photo: DuangDy
DuangDy was praised in this year's Michelin Guide, merely weeks after launching. Photo: DuangDy
DuangDy was praised in this year's Michelin Guide, merely weeks after launching. Photo: DuangDy

Decision to close Qabu and DuangDy at The Link 'not made lightly', says developer Kerzner


Panna Munyal
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When the world's longest cantilever was announced in Dubai in 2019, it made waves not only for its record-breaking size but also because it was billed as a future food haven. International award-winning chefs were being lined up to open UAE outposts in The Link, the bridge that connects One Za'abeel's two towers, which includes One&Only One Za'abeel and Siro One Za'abeel.

Spanish chef Paco Morales launched Qabu in February. It was closely followed by the Thai restaurant DuangDy, from husband-wife duo Dylan Jones and Bo Songvisava. Six months later, however, both restaurants have closed, a representative for The Link's developer, Kerzner, said.

DuangDy served authentic Thai dishes with a modern twist. Photo: DuangDy
DuangDy served authentic Thai dishes with a modern twist. Photo: DuangDy

A statement from The Link seen by The National said: “The decision to close DuangDy and Qabu was made after careful consideration. This choice has not been made lightly, as we have deeply valued the shared experiences and successes achieved.”

However, no specific cause has been outlined, with one member of staff noting: “We were not told the reason behind it.” The successes achieved by the two restaurants, and referenced by the rather vague closing communications memo, are by no means negligible, either: both were lauded in this year's Michelin Guide, with Qabu getting an honourable mention, while DuangDy's Apichaya Khomson won the Guide's Service Award.

“We extend our heartfelt gratitude to chefs Bo Songvisava and Dylan Jones at DuangDy, and chef Paco Morales at Qabu,” the statement said. “Their extraordinary talents and dedication have been instrumental in shaping the unique dining experiences that our guests have come to appreciate. Their innovative approaches and exceptional culinary skills have left a lasting impact on Dubai’s culinary scene.”

The statement added: “It is the right moment to take this step and focus on new opportunities.” However, no plans have been announced for the spaces previously occupied by DuangDy and Qabu.

“The closures do not impact our commitment to future projects and plans in these spaces,” the statement added. “Any updates on new ventures will be shared as soon as we have more information.” Members of staff at the two restaurants, meanwhile, will “be supported during this transition”, it said. “We are working closely with them to explore new opportunities within Kerzner,” it added, although it's unclear if all staff members have been offered new roles.

Chef Paco Morales is based in Cordoba. Photo: Qabu
Chef Paco Morales is based in Cordoba. Photo: Qabu

Six restaurants remain at The Link, including Michelin-starred La Dame de Pic and Sagetsu by Tetsuya, plus Arrazuna, Tapasake, Sphere and Aelia. Meanwhile, Andaliman and SteetXO are housed within the main building of One&Only One Za'abeel.

The National has contacted Kerzner and the chefs for further comment.

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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.”

Updated: September 12, 2024, 4:39 AM`