An electrical fault caused a fire in Kitchen Yadoo in Ajman. Courtesy: Mohammed Al Mandoos
An electrical fault caused a fire in Kitchen Yadoo in Ajman. Courtesy: Mohammed Al Mandoos
An electrical fault caused a fire in Kitchen Yadoo in Ajman. Courtesy: Mohammed Al Mandoos
An electrical fault caused a fire in Kitchen Yadoo in Ajman. Courtesy: Mohammed Al Mandoos

Competitors help rebuild local Ajman restaurant after it was destroyed in fire


Salam Al Amir
  • English
  • Arabic

Hundreds of Emirati buinessmen are using social media to help out a local restaurant in Ajman after it was destroyed in a fire last week.

Nearly 200 cafe and restaurant owners in the UAE have united in a WhatsApp group to help Mohammed Al Mandoos rebuild and start his business again.

On June 4, a short circuit in one of the air conditioning units of the restaurant caused a blaze that destroyed Kitchen Yadoo, which translates to "grandfather" from Arabic.

“Staff members were returning to work at around 5.30am that day when they saw thick clouds of dark smoke billowing out of the restaurant,” said Mr Al Mandoos, 31.

He immediately called the emirate’s civil defence. The fire was extinguished in less than two hours but the damage was done.

Kitchen Yadoo was destroyed in a fire but Emirati restaurant owners have come together to raise money to rebuild it. Courtesy: Mohammed Al Mandoos
Kitchen Yadoo was destroyed in a fire but Emirati restaurant owners have come together to raise money to rebuild it. Courtesy: Mohammed Al Mandoos

No casualties were reported but Mr Al Mandoos saw his place burnt down with the damages estimated at Dh400,000.

The restaurant first opened its doors in April 2018 in Al Jurf area. It is owned and run by a 100 per cent Emirati workforce.

“It was the first in Ajman to be entirely run by Emirati nationals, even our chef is Emirati, but I always thank god for everything that happens. Most importantly, no one was hurt in the fire,” he said.

Mr Al Mandoos was soon surprised to learn that his competitors were organising on WhatsApp to try raise funds to help him repair and reopen his business.

“Khaled Al Matroushi, the man who started the WhatsApp group, asked members to help me out,” said Mr Al Mandoos.

Two days after the fire, he received money to help him setup his business once again.

He did not wish to disclose the amount he was given but said it was crucial to rebuilding.

“Without it, immediate renovation of the restaurant wouldn’t have been possible,” he said.

“The group members did not want to leave me alone in this. It's not strange because these are the ethics of our religion and the noble values instilled in us by UAE’s Founding Father, the late Sheikh Zayed.”

How Tesla’s price correction has hit fund managers

Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.

It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.

The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.

Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.

Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.

He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.

AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”

A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.

Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.

Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.

Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.

By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.

Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.

In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”

Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.

She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.

Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.