The Villagio Mall opened its doors on Thursday for the first time since late May, when 19 people were killed in a fire that broke out near a childcare area at the shopping centre. Fadi Al Assaad / Reuters
The Villagio Mall opened its doors on Thursday for the first time since late May, when 19 people were killed in a fire that broke out near a childcare area at the shopping centre. Fadi Al Assaad / ReuShow more

Villaggio Mall, scene of deadly nursery fire, reopens in Doha



The Villaggio Mall in Doha partially reopened its doors this week more than three months after a fire killed 19, including 13 children, at the Gympanzee nursery.

The families of the child victims of the mall fire said yesterday that they were "angered" that the upmarket shopping centre had reopened and demanded that those responsible for the tragedy "face justice".

In a letter sent to The National yesterday, relatives of the children who died in the fire said that while they knew the mall would at some point reopen, they were shocked that neither the Villaggio Mall nor the government "had the respect to contact us in advance to explain this decision".

"We are angered that Villaggio has not even had the courtesy to invite us to grieve for our children in private at the location they died," read the letter. "The owners and the management should be ashamed."

The fire also claimed the lives of four nursery staff and two firefighters. No one from Villaggio Mall could be contacted for comment.

An electrical fault in a sporting-goods store on the second floor is thought to have started the blaze. Shoppers reported that the area, located between Gates 3 and 4, was still shuttered.

Qatar's attorney general ordered the arrest of five people in connection with the fire soon after the incident. The criminal prosecution over responsibility for the fire was postponed earlier this month because two of those charged failed to appear.

"Whilst we accept the right of Villaggio to reopen we also assert our rights as the families of the victims of this crime," the letter said. "Those individuals responsible must face justice. We have legitimate questions to be answered."

Family members of the dead also reminded consumers that they have a choice of where to shop.

"If you choose to return to Villaggio we have one request. Each time you return, remember. Remember the memories of those who died - including our 13 most precious children. Remember those who died trying to save our children ... And remember that justice has not been done.''

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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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Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.