Camilla d'Abo, the managing director of Dabo & Company, says companies value a more strategic approach.
Camilla d'Abo, the managing director of Dabo & Company, says companies value a more strategic approach.

One must look after one's appearance



Big brands such as BMW and HSBC have turned to DABO & CO for public relations and event management in the Middle East. Camilla d'Abo, the company's managing director, talks about what it takes for businesses to put their best face forward.

q How has the public relations (PR) industry changed from 2004, when your company launched?

a In 2004 it was the beginning of the boom in Dubai. The one big difference is now, after the recession, businesses are being forced to be strategic. It's not just about throwing a lot of money at things and trying to do the biggest, shiniest, sparkliest event. I would say people are valuing a more strategic approach.

What do you mean by strategic?

Talking directly to your audience through a strategic event that can be a conference or seminar. It could be corporate hospitality. For a lot of companies, 80 per cent of their business comes from about 20 per cent of their client base. But how much time and investment do companies give to retaining those clients and nurturing them? You've got to look at retaining your business rather than just having the big-bling fireworks.

But haven't companies cut their PR budgets?

We saw in the downturn that clients of ours would cut off their advertising retainer but kept their PR retainer. We recently did a survey among consumers and the number one reason for choosing a product was a brand's reputation. That's where PR is so important - you can't build a reputation through an advert.

Aren't public relations and advertising basically the same thing?

They are very different. Sometimes we'll say to a client, "You need advertising, you don't need PR," because if they're selling a product and want to ship a lot of units then advertising would probably yield a direct return, because it's a call to action. PR is about reputation, credibility and building a more in-depth story behind just that product. It's about why and how that product was created. It's really about trying to build a perception.

Sounds difficult for businesses to track in terms of how successful a PR company's efforts are.

Measuring return on investment is difficult. If you want to measure reputation, that just needs investment. What we advise is at the beginning of a year or contract you can do a study - a survey - among your current audience to see what is the perception of the brand. Then see what they think later. We can measure in other ways, too. If we have online campaigns you can see the number of hits and click-throughs. But it's not going to be in terms of units sold in a certain store.

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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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Distance covered: 160km

Temperature: -40°C

Weight of equipment: 45kg

Altitude (metres above sea level): 0

Terrain: Ice rock

South Pole stats

Distance covered: 130km

Temperature: -50°C

Weight of equipment: 50kg

Altitude (metres above sea level): 3,300

Terrain: Flat ice
 

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Company profile

Company name: Dharma

Date started: 2018

Founders: Charaf El Mansouri, Nisma Benani, Leah Howe

Based: Abu Dhabi

Sector: TravelTech

Funding stage: Pre-series A 

Investors: Convivialite Ventures, BY Partners, Shorooq Partners, L& Ventures, Flat6Labs


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