Insignia Cards - High net worth Dubai benefits local businesses

1. Insignia Cards - High net worth Dubai benefits localbusinesses Dubai’s status as a high-end destination is set toattract a growing number of high net-worth individuals over the next five years, andlocal businesses are set to reap the financial benefits of their presence. According to The Wealth Report, produced annuallyby Knight Frank in conjunction with Citi Private Bank, the distribution of the world’ssuper-rich is shifting. The report, which was released earlier this year, saysthe UAE will see a 25 per cent increase in the number of centa-millionaires — thosewith at least $100 million in liquid assets — by 2016. As a result, local companies across a range of sectorsare drawing up strategies and releasing products to capitalise on the rising numberof rich individuals living and working in the UAE. From airlines to credit card companiesto hotels, everybody wants to be involved in this lucrative segment. One company that is seeking to expand its presencein the UAE isInsignia Cards Lifestyle Management, which caters for the “eliteechelons of high society”. It has offices in major cities across the globe and is nowworking with local UAE lenders with a view to introducing a new range of ‘super’credit cards that are embellished with precious woods, bone, rocks, corals, pearls andfaceted jewels. The company says it has developed strategic alliances with leadingfinancial institutions worldwide and that it is currently negotiating collaborationwith top banks in the UAE. “These cards are bespoke and we have been workingon them for a very long time. We are in a test phase and they are currently availableto very few clients,” said Nada Tucakov, vice-president ofInsignia Lifestyle Management. “We will be targeting both Emiratis and expatriatesbut we would only deal with those who have more than £30 million (Dh 177.9 million)in assets. The UAE is an important market for us but we expect clients thereto fit a similar profile to those we already deal with,” she added. The new cards can also be embellished with gold, platinum,diamonds and marble while holders enjoy unlimited spending power and 120days interest free credit. “When you look at high net-worth individuals, yousee they want something unique and bespoke. They are an extension of their existingcards; an accessory that a high net-worth individual might possess,” Tucakov said.

2. “They spend quite a lot of money on beautiful jewellery so we want to offer them a card that can be part of their wallet/purse. It all depends on the individual profile but there will be a certain limitation for securityreasons but we will make sure the client does not feel those limitations,” she added. With 2,000 of the estimated 23,000 new centa-millionairesof the next five years predicted by the report to be coming from the MiddleEast and Africa, Dubai is in an ideal location to take advantage as other cities inthe region continue to be affected by political uncertainty. Visa, one of the main sponsors of the Dubai ShoppingFestival revealed earlier this year that total card spend in the UAE between January5 and February 5 amounted to $497 million (Dh1.82 billion), a year-on-year riseof 22 per cent compared to 2011’s DSF. Russians, Saudis, British, Chinese and Americanswere named as the top spending nationalities during the month-long event. More than a million Russians jetted in for the event,spending a record $122.6 million on their Visa cards — a 356 per cent increase on 2011.Airlines have been quick to react to specific spending trends with commercialcarriers such as Emirates and Etihad expanding their reach into Russia and Chinain recent years. In its latest report, released last week, Visa saidaccount holders from the United States, Russia and the United Kingdom spent a totalof $1.2 billion on Visa debit and credit cards during 2011 — almost a third (29.7 percent) of total tourism spend in the UAE. The UAE’s business aviation sector is also witnessingunprecedented demand. “Lately, we have seen a considerable growth in demandfor charter flights,” said Ali Al Naqbi, founding chairman of the Middle East BusinessAviation Association. “Regional charter operators have confirmed receivinga significant number of RFQs (request for quotations),” he added. Al Naqbi says the majority of business aviation customersin the Mena region are middle-management personnel who require the servicefor work purposes. However, he said high net worth individuals play asignificant role in the growth of the market.

3. “Furthermore, regional business aviation operatorshave placed a number of sale orders for second hand as well as new business aviationaircrafts. Additionally there has been a noticeable increase in business aviationflight movements within the UAE’s airports,” he said. Hotels are also taking advantage of the increasingnumber of high net-worth individuals visiting and investing in the UAE. Ina bid to make Chinese visitors more comfortable, Ibn Battuta Gate Hotel has introducedMahjong, a table game originating in China. International travel by Chinese people has remainedbuoyant in the face of a global tourism downturn, in part thanks to China’s more rapidrebound from the economic slump,” said Tong Wu, sales manager at Ibn BattutaGate Hotel. “The UAE appears to be enjoying a growing profile, and Dubai in particularhas become better known since the opening of the Burj Khalifa,” she added. Wu says Dubai Tourism and Commerce Marketing (DTCM)organises seminars at which representatives from UAE hotels and airlinescan meet Chinese travel agents. “Among the new targets — cities such as Tianjin, nearBeijing, and Shenyang in the north-west — these gatherings help tour operatorsstrike more competitive deals with UAE hotels and airlines,” she said. “There are hugeopportunities for Chinese investmentin the UAE, especially in the energy sector. What is required at this stage is topromote those opportunities

4. through an enhanced collaboration between the UAE and Chinese business community,” she added.