An ITP Media Gr oup P ublic ation Dubai Mumbai London New York What the new retirement visa programme could mean for the Dubai economy UAE: AED 15 BAHRAIN: BHD 1.500 OMAN: OMR 1.500 KUWAIT: KWD 1.200 #21/15 September 27 – October 24, 2020www.rockpoint.com is pleased to announce the closing of Rockpoint Group, L.L.C. is a real estate private equity firm and Registered Investment Adviser that employs a fundamental value approach to investing and targets select product types and geographic regions, with an emphasis on opportunities in major coastal markets in the United States. THIS ANNO UNCEMEN T APPEARS AS A M AT TER O F RECO RD O NLY $5,831,000,000 BOSTONDALLASSAN FRANCISCO || LONDON | in Equity Capital Commitments comprised of $3,819,000,000 in Commitments to ROCKPOINT REAL ESTATE FUND VI and $2,012,000,000 in Commitments to ROCKPOINT GROWTH AND INCOME REAL ESTATE FUND IIIarabianbusiness.com 3 www.arabianbusiness.comSUBSCRIBE NOW +971 4444 3000 www.itp.com/subscriptionarabianbusiness #arabianbusiness arabianbusiness 5 THINGS TO KNOW ABOUT Ola Haddad from Bayt.com reveals which five sectors in the UAE job market are now hiring. C OMMENT 08 E C ONOMY Ali Akawi, CEO of ITP Media Group, ponders on what a post-coronavirus future will look like. C OMMENT 12 T OURISM Tourism in Saudi Arabia has much to celebrate this National Day, believes His Minister Ahmed Al Khateeb. THE BIG S T O RY 14 ENER GY The April supply cuts were respected by almost all the OPEC member states, but there are signs of cracks emerging. C OVER S T O RY THE RISE OF BOOMERTOWN As the government of Dubai unveils its retirement programme for the over-55s, we look at the potential economic uplift this could create for a number of sectors in the emirate – from healthcare to real estate. 20 #21/15 September 27 – October 24, 2020 Arabian Business /Contents 06 FIR S T WORD q Home is where the heart is, but what happens when the heart can’t stay where it wants?” Scott Armstrong scott.armstrong@itp.com THE BIG PICTURE Artist Sacha Jafri stands on his record-breaking painting The Journey of Humanity in Dubai 163032 34 STARTUP: MUHAMMED MEKKI The founding partner of AstroLabs explains why now is the moment for start-ups to be considering KSA. REVIEW: ROLLS-ROYCE DAWN The handsome convertible is a younger, altogether more sporty version of the classic, luxurious car.INDEP TH NEWS S U B S CRIBE NOW www.itp.com/subscriptions +971 4 4443000 AD VER TISEMENT EXPER T VIEWS EXCLU SIVE INTERVIEWS PUBLISHED BY AND © 2020 ITP MEDIA GROUP FZ-LLC. MEDIA WHEN YOU HAVE FINISHED WITH THIS MAGAZINE, PLEASE RECYCLE IT NOTICE The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication, which is provided for general use and may not be appropriate for the readers’ particular circumstances. The ownership of trademarks is acknowledged. 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PO Box 500024, Dubai, UAE Tel: +971 4 444 3000 Offices in KSA, UAE, UK, US, and INDIA ITP MEDIA GROUP CEO Ali Akawi MANAGING DIRECTOR Sue Holt EDITORIAL EDITOR-IN-CHIEF Rob Corder, rob.corder@itp.com EDITORIAL DIRECTOR Eddie Taylor, +971 4 444 3320, eddie.taylor@itp.com EDITOR Scott Armstrong, +971 4 444 3513, scott.armstrong@itp.com CHIEF REPORTER Gavin Gibbon, +971 4 444 3845, gavin.gibbon@itp.com HEAD OF VIDEO CONTENT Shruthi Nair, +971 4 444 3264, shruthi.nair@itp.com SUB EDITOR Edward Liamzon, +971 4 444 3474, edward.liamzon@itp.com ARABIANBUSINESS.COM EDITOR Andy Sambidge, andy.sambidge@os.itp.com UK EDITOR Alicia Buller INDIA EDITOR James Mathew STUDIO STUDIO MANAGER Abuzar Samo SENIOR IMAGE EDITOR Emmalyn Robles SENIOR PHOTOGRAPHER Efraim Evidor STAFF PHOTOGRAPHERS Aasiya Jagadeesh, Ajith Narendra, Fritz John Asuro PRODUCTION & DISTRIBUTION GROUP PRODUCTION & DISTRIBUTION DIRECTOR Kyle Smith PRODUCTION MANAGER Basel Al Kassem PRODUCTION COORDINATOR Manoj Mahadevan EVENTS & MARKETING DIRECTOR OF AWARDS & MARKETING Daniel Fewtrell, +971 4 444 3684, daniel fewtrell@itp.com CIRCULATION DISTRIBUTION & WAREHOUSE MANAGER Praveen Nair ADVERTISING GROUP COMMERCIAL DIRECTOR Amit Chopra, +971 4 444 3000, amit.chopra@itp.com SALES MANAGER Pankaj Sharma, +971 4 444 3510, pankaj.sharma@itp.com DIGITAL GROUP COMMERCIAL DIRECTOR Sarah Doherty, +971 4 444 3243, sarah.doherty@itp.com ITP GROUP CEO Ali Akawi CFO Toby Jay Spencer-Davies CORPORATE WEBSITE itp.com CIRCULATION CUSTOMER SERVICE +971 4 444 3000 WEB arabianbusiness.comSince 1988, Chopard has been the historical partner and official timekeeper of the fabled Mille Miglia, the world’s most beautiful car race. Proudly created and assembled in our Manufacture, this unique 42 mm-diameter chronograph showcases the full range of watchmaking skills cultivated within the Maison Chopard. MILLE MIGLIA CLASSIC CHRONOGR APHMILLE MIGLIA CLASSIC CHRONOGR APHFIR S T WORD / Scott Armstrong, Editor-in-Chief 6 Vol. 21/15, September – October 2020 Q IT SOMETIMES FEELS THAT EXPAT LIFE CAN SEEM LIKE A LAND GRAB EXERCISE, EARN AS MUCH AS YOU CAN AS QUICKLY AS YOU CAN AND THEN REMIT IT BEFORE YOU SPEND IT” From Boom Town to Boomer Town The launch of the retirement visa will help see Dubai as a place to live for the long term for its millions of expat workers GBP320bn (AED1.5bn) of annual household spending, with the over-50s holding over three-quarters of that nation’s financial wealth. Or consider that in the US retirees held an average of $1.12m (AED4m) worth of assets, according to the Federal Reserve of St Louis figures. So, there is financial logic to Dubai’s move. But I wonder if the real value to the emirate could prove to be more than money? Home is where the heart is, but what happens when the heart can’t stay where it wants? Until now there has always been a clock ticking for the majority of expats for whom Dubai’s “golden visa” for investors was always going to be out of reach.But now, especially for those with property in that AED2m price bracket, another option presents itself, which could be as emotionally significant as it is financial. What impact will that change of mindset have for the incumbent expat population if the clock is no longing ticking? Will you be more motivated to invest in Dubai? Will it help you decide to launch that business? Or will it make you more motivated in your career or job, knowing that perhaps it can lead to a permanent life in the city? It sometimes feels that expat life can seem like a land grab exercise, earn as much as you can as quickly as you can and then remit it before you spend it. But would the prospect of retiring in Dubai change that? It’s not citizenship for sure, but it is the right to remain. For too many, of course 2020 has meant an involuntary return to the land of their birth as the pandemic swept through the job market. For those that remain perhaps the prospect of that, or at least having to consider it, has put into perspective all the fruits that Dubai does have to offer. There have always been those with their cases packed by the door, ready to return when the Dubai dream comes to an end. Perhaps now they might begin to think about unpacking and looking longer term. “OKAY, BOOMER.” ON MORE THAN one occasion I’ve had that sarcastic label thrown at me by my teenage offspring, all the more stinging for the fact I’m not actually that old. For the record, baby boomers were born between 1946 and 1964 and are currently aged between 56 and 74 years-old; despite appearances I don’t quite qualify for that club yet. But now Dubai is set to redefine that eye-rolling trope by celebrating age and shouting out “Okay, boomer” with all the enthusiasm of Robin Williams in Good Morning Vietnam – a film reference that predates most Gen Z’s existence. Last month, Dubai launched its new retirement programme, which includes a renewable five-year visa for resident expatriates and foreigners over the age of 55 providing they meet one of these criteria: a monthly income of AED20,000 (approximately $5,500); AED1m ($275,000) cash savings in the bank; or a property worth at least AED2m ($550,000). Retire in Dubai, the first of its kind in the region, is being spearheaded by Dubai Tourism in collaboration with the General Directorate of Residency and Foreigners Affairs (GDRFA-Dubai). In this issue, we unpack what Dubai’s aim to become Boomer Town means for the economy of the emirate. Nabila Rahal explores what the new visa means to those owning property, especially at that AED2m price point, and whether retirees can drive a resurgence in the embattled market. In the UK, Alicia Buller asks whether pensioners in the United Kingdom could realistically consider spending their golden years in the sun, and James Mathew in Mumbai looks at how the Indian NRI community have responded to the news. We also look at what it could mean for the medical community, and ask the key financial question: “So just how much do you need to retire in Dubai?”. How much is enough? That question has already attracted diverse views on social media. But for the naysayers, consider how powerful an economic force the pensioner has become. A report by private equity firm ECI recently pegged the “grey pound” in the UK as now accounting for u Dubai’s value proposition is an attractive option for residents to retire here 15th Dubai’s ranking in the top 15 cities in the world for fi nancial attractiveness, according to AIRINC’s Global 150 Cities IndexFOR SPONSORSHIP ENQUIRIES Anup Nagpurkar Group Sales Manager +971 4 444 3373 + 971 52 895 0931 anup.nagpurkar@itp.com FOR NOMINATION ENQUIRIES Tom Oxtoby Editor +971 4 444 3419 tom.oxtoby@itp.com FOR EVENT ENQUIRIES Daniel Fewtrell Director of Awards +971 4 444 3684 daniel.fewtrell@itp.com FOR TABLE BOOKING ENQUIRIES Anthony Chandran Table Sales Executive +971 4 444 3685 anthony.chandran@itp.com Visit www.mepmiddleeast.com/awards for more information or contact one of the team today. BOOK YOUR TABLES TODAY Wednesday 30th September 2020 GOLD SPONSORS PLATINUM SPONSOR The MEP Middle East Awards are back and will celebrate the leading accomplishments in the mechanical, electrical and plumbing sectors in the Middle East. SILVER SPONSOR CATEGORY SPONSORC OMMENT / By Ali Akawi, CEO of ITP Media Group 8 Vol. 21/15, September – October 2020 days off in a calendar, as if serving a prison sentence. We can hunker down and wait for the storm to pass. Or we can seize the day and draw energy from the challenges themselves. No prizes for guessing my preferred option. I am convinced that we can use the power inherent in present times to our advantage, treating it as we would, say, a formidable martial arts opponent – with finely tuned awareness and respect. But we don’t all have to become accomplished martial EVERYWHERE I LOOK THERE IS talk of a post-coronavirus world. And no wonder. It is tempting to project ourselves into the future, however near or distant – a time when the pandemic is a thing of the past and some semblance of normality has returned. We are, though, living in a time of transition and that is tough. This is a time between what we generally accepted as normal life in the recent past, and the new normal that we hazily ascribe to the future, also known, somewhat artists to draw strength and energy from even the most difficult challenges – so long as we are open to the possibility, and willing to train ourselves and support each other in doing so. Here is how I see us developing this capability – and why I believe it’s essential that we do. We can’t know the future, but we can know the present We’ve become used to acting as if we can know the future – and getting away with it. Cast your minds back to when we The world after coronavirus? We’re already making it Ali Akawi, CEO of ITP Media Group, ponders on what a post-coronavirus future will look like – and why businesses should be committing all their efforts to shaping it prematurely, as “the world after Covid”. Let me be clear. I don’t have a problem with people asking good questions about the kinds of futures we want to be working towards. This is important and necessary. My concern is that we don’t get stuck waiting for such a time when all of this will be a thing of the past. In these unprecedented times, we have several choices. We can hide under the covers. We can sit at home in our pyjamas. We can engage in escapist fantasies, marking the C OMMENT arabianbusiness.com 9 3.3% The projected growth of the UAE economy in 2021, according to the IMF in the status quo, the things that endure, and the openings and spaces into which we might usefully act – all of which takes courage and energy. Ask good questions, remain poised for action Engaging productively with the present means recognising both positive and negative developments, and simultaneously being ready and prepared to act in line with our core spheres of activity. It means asking some searching questions about what’s working and what isn’t – whether that’s a longstanding norm we’ve previously taken for granted or a recent modification to deal with the pandemic. A case in point is the transition to remote working. Alongside the prospective gains to employees and employers Q IT IS THE PRESENT WHERE THE RIPEST POSSIBILITIES ARE LOCATED, THE HERE AND NOW WE CAN MOST USEFULLY REFLECT AND BUILD ON” we can’t act in the future. We can only act in the present, hopefully shaping the future in the process. Equally, dwelling on previous mistakes and successes is unlikely to get us very far either. In almost every sector, what worked before won’t work now, or not as before. But neither does it mean that nothing will work, that we have no option but to write off the present. It is the present where the ripest possibilities are located, the here and now we can most usefully reflect and build on. This requires us mindfully scanning patterns, noticing breaks u Working in offi ce can help protect against isolation and the overload of juggling work and family life in the form of increased flexibility and reduced costs, one outcome of this shift is the fall in air pollution and carbon emissions reported worldwide during lockdown. Potentially, this points the way to a cleaner, lower-impact way of doing business. So far, so good... and for some job roles and functions, remote working could prove a sustainable arrangement hereafter. There are, of course, whole areas of work that cannot be performed remotely. Likewise, there are professional roles where the buzz, creativity and motivation that emerges when one is working as part of a well-functioning, productive, successful team aren’t easily replicated while working in isolation. There are also concerns about the likely impact of remote working on economic routinely planned business strategy, events and holidays with a reasonably well- founded belief that we could predict what was around the corner. Those were the days, right? One reason 2020 has been so unsettling is that it has shaken our vision of the future as we thought we knew it. We can let this heightened sense of uncertainty continue to be a problem, or we can learn to roll with it. The trouble I have with all this talk about a post-Covid world is that it keeps us hankering after something that may be many months – more likely years – away. When we pin our hopes on what lies ahead, we take our eyes off the prize: the present moment, replete with challenges, yes, but also with opportunities. Imagining times to come can be a fruitful exercise, but Next >