Nearly 20,000 warnings for unhygienic practices at beauty salons



DUBAI // Nearly 20,000 warnings were issued and several beauty salons and health clubs were temporarily shut last year because of unhygienic practices, Dubai Municipality said yesterday.

Common offences included reusing tools meant  for one-time use.

The municipality did not, however, disclose how many salons and clubs were temporarily shut in 2011 or the number of fines it had issued.

“Total inspections carried out on the health and related institutions in Dubai amounted to 13,850 inspections in 2011, while the total warnings sent to such institutions reached 19,413,” Redha Salman, the municipality’s director of public health and safety, said yesterday.

His comments followed a recent forum that the municipality conducted with about 30 salons and health clubs. They were told to follow hygiene regulations, including the use of sterilised and approved equipment.

Under the hygiene code, salons are banned from blending henna with other chemicals, and from reusing facial towels and shaving sets. Instead, they are required to use disposable towels and shaving sets. And health clubs must secure approval for any dietary supplements they sell.

The first step if a routine inspection uncovers a problem at a salon or club is a warning, Mr Salman said.

In cases of repeat offences, establishments are closed down for seven days, Mr Salman said, adding that no salon or club had been permanently shut so far.

“Our system is with notices, fines, doubling of fines and finally temporary closure,” he said.

He said fines ranged from Dh200 to Dh10,000, depending on the offence.

“It could be because of cleanliness, hygiene or non-compliance of a product,” he said. “We have sometimes seen fines reach up to Dh10,000. But our intention is not to keep doubling and tripling the fines.”

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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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