I recently rented an apartment on Yas Island in Abu Dhabi. My landlord, via his agent, requested a deposit of Dh7,000 by cheque and the annual rent fee of Dh140,000 in a separate cheque. He cashed the deposit but now claims he has lost the cheque for Dh140,000. Although I trust the landlord, I am a little bit hesitant to issue another cheque. After all, if I would have paid him in cash, and later claimed he lost it, I would not pay again either. What is the proper way to handle this? AD, Abu Dhabi
Initially, I advise filing a police complaint, giving them all the details of the missing cheque. The police complaint has to be filed in the relevant jurisdiction where the cheque was lost (in this case Abu Dhabi). After they carry out the initial inquiry, the police will normally issue an order to the concerned bank to stop the cheque payment in case it is ever found again or presented to the bank in the future. Only upon receipt of such an order, together with the original protest, will the bank stop payment of the cheque.
If you do all of this, it would then be OK for you to re-issue another cheque to the landlord, however you should put a clause in the contract (include the cheque number and bank name) that states if the original cheque turns up, the money will either be returned to you or put as credit towards future rental payments. Also note that cheques become invalid if older than six months.
I can understand your reluctance to just issue another cheque but if you follow these steps, I’m sure you will be on the safe side.
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I rent my apartment directly from a landlord, who is also an acquaintance I know through work. He says we need a tenancy contract to make it all official. Where do I get this document from as in the past this has been supplied by a real estate agent? SP, Dubai
The Dubai Land Department announced the launch of its Unified Lease contract, which came into mandatory effect starting March 2017. The new contracts outline and define the roles and responsibilities of all parties involved in the contract, especially the landlord and tenants. Your landlord is therefore correct in requesting an official tenancy contract and this document can now be retrieved by visiting the Ejari website www.ejari.ae.
On the homepage on the right hand side there are five tabs that mention download, directly below the last one is another large box that says "download unified Ejari tenancy contract". Click this and you can start to fill out the necessary fields then print it off.
Alternatively, and for a fee (if so required), you could approach any Rera-registered real estate agent and request they do this for you. They can then act as a middle man between you and the landlord to also help to conclude any negotiations.
Mario Volpi is the sales and leasing manager at Engel & Volkers. He has worked in the property sector for 34 years in London and Dubai.
The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario.volpi@engelvoelkers.com
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Engine: 1.5-litre turbo
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OPINIONS ON PALESTINE & ISRAEL
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
Profile of Bitex UAE
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Founder: Monark Modi
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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.”
Frankenstein in Baghdad
Ahmed Saadawi
Penguin Press
FFP EXPLAINED
What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.
What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.
What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.
MATCH INFO
Arsenal 1 (Aubameyang 12’) Liverpool 1 (Minamino 73’)
Arsenal win 5-4 on penalties
Man of the Match: Ainsley Maitland-Niles (Arsenal)
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