Simon Frith, managing director of Al Futtaim Motors, wants to bring the Prius to the UAE.
Simon Frith, managing director of Al Futtaim Motors, wants to bring the Prius to the UAE.

Al Futtaim Motors MD has high hopes for Prius in the UAE



A push to get the Toyota Prius hybrid into UAE showrooms, express service centres and a separation of the Lexus and Toyota brands and are all part of Simon Frith's plans for the future. Frith is the managing director of Al Futtaim Motors, sole distributor of Toyota and Lexus for the UAE, and he says that the company's newest innovation - a state of the art service centre and dealership in Abu Dhabi - as well as future plans are all part of ensuring customer focused, long-term growth.

"We've got an investment programme where we're spending more than Dh3 million each year, upgrading existing premises and increasing our presence in Abu Dhabi where our market is growing the fastest," Frith says. "I am not interested in just growing in the next year, I am talking about long-term, sustainable growth." One of the bolder moves to ensure Toyota builds on its 35 per cent market share in the UAE is a bid to get the Toyota Prius hybrid, the eco-friendly small car famously driven by Cameron Diaz and Leonardo DiCaprio, sold in the UAE.

"If I had my way, it'd be in the showrooms today," says Frith, adding that he is currently in negotiations with Toyota Motor Company to determine a timetable for when the car can go on sale here. Frith firmly believes that low fuel prices should not stand in the way of consumer interest in the Prius. "With the Prius, I feel there is the market for it now as people will buy it because 'this says something about me' regardless of the price of petrol," says Frith.

He cites the opening of the Dubai Metro and the Dubai RTA testing Toyota Camry hybrids for the past two years as evidence that the UAE authorities are interested in sustainable transport. "For nearly two years we've been testing the hybrid taxis and not one of them has had any problem with the hybrid system or batteries and the test doesn't get any tougher [than being used as a Dubai taxi]." Looking around the new service centre in Abu Dhabi's Musaffah district, Frith says the project was originally planned as a temporary fixture but it has already proven such a success with customers that it is now considered permanent.

"The active service reception is great from a customer point of view - they don't want to be looking for a car spot, here they can just drive up and right into reception and it's air-conditioned," he says. Convenience is also the aim with five "Formula One" service centres that are planned to open soon, first for Dubai and then for Abu Dhabi. These centres will offer an express service where cars will be driven into the workshop and customers can watch the service conducted by a team of mechanics through a glass wall - "for total transparency" - while having a coffee or a snack.

"By the time they've had a coffee and read the paper, the car should be ready - people don't want to leave their cars all day at a service centre," says Frith. Creating a distinction between the Toyota and Lexus brands in terms of dealerships, servicing and marketing is "a big part of the agenda" for the coming year, Frith says. "We have a firm commitment to separate Lexus and Toyota and a significant part of that is the the hiring of a new GM for Lexus operations, who started three weeks ago."

Multiple Toyota and Lexus recalls in the past year have not adversely affected business in the UAE. Frith admits that there would certainly be some potential buyers who may have decided to choose a competitor over Toyota or Lexus, but adds that customers have been "very impressed" with the way that Al Futtaim Motors dealt with the recall. "Customers who wanted their cars checked for any issues were very quickly dealt with and we set up a hotline so that customers would always be informed on any new developments," says Frith.

He would not be drawn on whether any of the incidents surrounding the recalls involved bad driving rather than bad manufacturing or design. "It doesn't matter," he says. "Customers will take recalls and bad reports at face value and it is our duty to respond to that." glewis@thenational.ae

If you go

The flights
Emirates and Etihad fly direct to Nairobi, with fares starting from Dh1,695. The resort can be reached from Nairobi via a 35-minute flight from Wilson Airport or Jomo Kenyatta International Airport, or by road, which takes at least three hours.

The rooms
Rooms at Fairmont Mount Kenya range from Dh1,870 per night for a deluxe room to Dh11,000 per night for the William Holden Cottage.

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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