DUBAI // Every week, Farah Kabir spends up to 40 hours shopping.
Browsing through fashion rails is all in a day's work for the 32-year-old owner of the personal shopping and styling agency, DressCode.
To ensure she has the perfect item for a customer, Ms Kabir will sometimes buy the same piece in several sizes and colours and return unwanted stock for a refund.
But a change in policy by MH Alshaya Company left her Dh3,000 out of pocket last year.
The group, which operates H&M stores in the UAE, now loads the cash value of refunds on to a "credit card" that can only be used at stores owned by the group.
"I ended up losing my money," said Ms Kabir. "The customer should have the right to change their mind, but in the UAE the decision is left up to the store to accept or deny."
Alshaya said reaction to the card since its introduction had been positive overall.
"We have always worked closely with local ministries to ensure that we are compliant with the law, and customers with proof of purchase who return faulty or damaged goods are entitled to a full cash refund within the specified period," said a spokeswoman for the company.
"All other refunds are credited on to the Alshaya Card to the full value of the purchase and can then be redeemed at any participating Alshaya outlet over the following 12-month period, rather than just in the store where the purchase was made.
"We believe our approach to refunds is fair and transparent."
The Commercial Control and Consumer Protection (CCCP) division of Dubai's Department of Economic Development (DED) said it regarded credit notes as a valid option, but consumers had the right to accept or reject them if they were returning a defective product.
Omar Bushahab, the chief executive of the CCCP, said: "A refund in case of 'change of mind' is not compulsory under UAE law and depends on the policies of the shops."
But Ms Kabir is not the only person to take issue with how retailers chose to implement the law.
While figures for 2012 are not yet available, the DED reported that 2,300 shoppers had registered complaints with them in the first six months of 2011, with the majority of these about demands for refunds and exchanges.
Despite the complaints, the Ministry of Economy has said it is committed to its existing practice of allowing retailers to decide their own returns policies.
"It is unfair we are not offered a refund, especially if they have refund policies in other countries," said Maha Dahlan, a 22-year-old student.
"Why should I be forced to buy from a specific retailer if I cannot find something that suits me," said Najwa Hassan, a 45-year-old housewife.
"More importantly, why are retailers allowed to create their own definitions of a refund?"
Shoppers say there are other valid reasons for a refund.
Maha Murad, a 44-year-old woman who wears the hijab, said she feels it is culturally insensitive not to allow her to try clothes on at home.
"I do not feel comfortable trying on clothes in many changing rooms and therefore I am forced to settle for clothes because I cannot take things back," she said.
"There should be at least a rule that offers the consumer cash if they pay in cash."
Safaa Ettazi, a 26-year-old customer-service agent, believes it should be compulsory for all shops to offer a refund.
"It should not be left to the shops to decide," she said. "It is important to have the right to change one's mind and be able to get cash back.
"Most shops abroad allow it, why should it be different here?"
wissa@thenational.ae
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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.”
