People play Super Lottery in front of Nimet Abla's shop in the Eminunu district of Istanbul this week.
People play Super Lottery in front of Nimet Abla's shop in the Eminunu district of Istanbul this week.

Lottery fever sweeps through Turkey



ISTANBUL // Abdullah Cavus knows exactly what to do when and if he gets the good news. "If I win, I am going to get up and leave all this straight away," Mr Cavus, a shoeshine man in Turkey's metropolis, Istanbul, said yesterday as he pointed to the portable shoeshine stand in front of him. "I will buy a house and give the rest of the money to the poor." Mr Cavus's stand in front of the historic New Mosque in Istanbul's old town is only steps away from Nimet Abla's shop, the city's most famous place to buy lottery tickets. Nimet Abla, or Sister Nimet, is where Mr Cavus bought the lottery ticket he hopes will make him rich.

With a record jackpot of an estimated 55 million lira (Dh113m), today's draw of Turkey's state lottery, "Super Loto", has attracted crowds of customers at Nimet Abla and lottery shops around the country. As the effects of the global economic crisis start to bite and unemployment shoots up, Turks from all walks of life regard a lottery coupon for six lira as their ticket to happiness. The state lottery is one of the few legal ways to gamble in Turkey, where casinos have been banned since the 1990s. According to the latest available figures, Turks spent about six billion lira on lottery tickets between 2002 and 2007. Of that sum, 2.6bn lira were returned as winnings.

While many people bet on horse races and on football matches on a regular basis, nothing compares to the craze the weekly drawing of the Super Loto has triggered. "About 6,000 people come here every day," said Hasan Egri, a clerk working at Nimet Abla since 1994. "I have never seen busier times." As he spoke, two policemen stopped their patrol car in front of Nimet Abla and got out to buy their coupons.

Customers can either fill in their ticket on their own, choosing six numbers in a field of 54, or have a computer generate a combination for them. Most prefer the latter, because they hope Sister Nimet will bring them luck. The shop, a small building with a window front that customers walk up to to buy their tickets, bears the name of Melek Nimet Ozden, who founded it with her husband in 1928 and who quickly acquired a reputation of bringing luck to people who bought their lottery there. She died in 1978, but her fame lives on. As customers lined up in front of the small shop yesterday, pictures in the shop showed Nimet Ozden surrounded by bills of cash, handing out money.

"I have been playing every now and then, whenever the jackpot was high," said Hulya Hamsioglu, 52, who bought a ticket at Nimet Abla. If she wins the big prize, she wants to buy a house, see the world and support her relatives, plans that reflected the dreams of many who were waiting in front of the shop. "I also want to build a school and give grants to students," Mr Hamsioglu said. Not everyone has decided what to do with their hoped-for millions. "I will think about it when I have the money," said Ramazan Yurtsever, 40, a crane operator. Several said they played for the first time this week.

The 55m lira in the jackpot has been piling up because no one has had the six lucky numbers for 12 weeks now. The Hurriyet daily yesterday quoted an unnamed official of the state lottery as saying that the jackpot could be even higher next week if no one succeeds in today's drawing. Some experts have warned the potential winner of dangers that come with a stash of money that is so big that "even the interest will make you rich", as one newspaper put it.

"This amount [of money] destroys a person whose moral values are not well grounded," the daily newspaper Milliyet quoted the psychologist Yalcin Kirecci as saying. Another expert, Arif Verimli of Istanbul's Yeditepe University, advised the winner should not make a decision about what to do with the money for the first 40 to 60 days after winning. While the hopeful formed queues in front of Nimet Abla, some Turks said they did not feel the temptation of becoming rich overnight. "I am not playing because the chances of winning are low. It is like throwing your money away," said a lawyer, Eyup Yasar Gumus, at a table outside a cafe near Nimet Abla's shop. He said the crowds outside places like Nimet Abla were not only gathering because of the big jackpot, but also because of the bleak economic situation and growing unemployment. "The crisis has been having an effect; unemployment is rising, so people see the lottery as a door of hope," he said.

That is certainly true for Mr Cavus, the shoeshine man who has to put three children through school with his meagre income. "Everybody is gambling; everyone wants to have the money," he said. tseibert@thenational.ae

Guide to intelligent investing
Investing success often hinges on discipline and perspective. As markets fluctuate, remember these guiding principles:
  • Stay invested: Time in the market, not timing the market, is critical to long-term gains.
  • Rational thinking: Breathe and avoid emotional decision-making; let logic and planning guide your actions.
  • Strategic patience: Understand why you’re investing and allow time for your strategies to unfold.
 
 
Vidaamuyarchi

Director: Magizh Thirumeni

Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra

Rating: 4/5

 

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.”

A cheaper choice

Vanuatu: $130,000

Why on earth pick Vanuatu? Easy. The South Pacific country has no income tax, wealth tax, capital gains or inheritance tax. And in 2015, when it was hit by Cyclone Pam, it signed an agreement with the EU that gave it some serious passport power.

Cost: A minimum investment of $130,000 for a family of up to four, plus $25,000 in fees.

Criteria: Applicants must have a minimum net worth of $250,000. The process take six to eight weeks, after which the investor must travel to Vanuatu or Hong Kong to take the oath of allegiance. Citizenship and passport are normally provided on the same day.

Benefits:  No tax, no restrictions on dual citizenship, no requirement to visit or reside to retain a passport. Visa-free access to 129 countries.

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How to avoid crypto fraud
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Squid Game season two

Director: Hwang Dong-hyuk 

Stars:  Lee Jung-jae, Wi Ha-joon and Lee Byung-hun

Rating: 4.5/5

Other workplace saving schemes
  • The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
  • Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
  • National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
  • In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
  • Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding