Al Ain tragedy is a wake-up call on lorry safety


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'A sound like a blast" was how one witness described one of the deadliest accidents to occur on UAE roads, on the outskirts of Al Ain on Monday. Twenty-four people were killed, all of whom were maintenance workers travelling to a job at Al Rawda Palace.

The incident is still being investigated, and it is too early to definitively assign blame. Police will continue their inquiry, and families and friends will continue to seek answers. But even before the grieving ends, there is urgent work that cannot wait.

The general circumstances of this crash will be all too familiar to most motorists, who have seen lorries and passenger vehicles barrelling along with obviously unbalanced suspension and threadbare tyres, the litany of unsafe behaviour ranging from tailgating to changing lanes without signalling, and of course the incessant speeding. Progress has been made to reduce road fatalities in recent years, but this instance is a tragic reminder that road safety is a campaign that never ends.

In June 2009, when three young Emirati girls and their nanny were killed after an accident as they tried to jaywalk across Airport Road in Abu Dhabi, this newspaper joined a nationwide chorus calling for better safety standards. Since that tragedy, the number of road fatalities has levelled and even been reduced in some areas. In Dubai last year, for example, road-accident deaths dropped by 11 per cent.

The road-safety campaign has been a multifaceted task - enforcement and meaningful punishment for dangerous drivers, transport-infrastructure improvements, and ultimately a change in the driving culture. There has been progress on all of these fronts, but there is obvious anecdotal evidence that not enough is being done to improve safety standards for larger cargo and passenger vehicles.

It is dangerous enough when a driver of a passenger car presses the pedal to the metal - when the vehicle in question is a loaded lorry weighing 20 tonnes, the danger increases markedly. There are, however, obvious and simple solutions that just need to be implemented. Lorries and passenger buses should have their own conservative speed limits, and infractions such as tailgating and reckless driving have to be vigorously enforced. Accidents could be prevented before they happen if heavy-vehicle drivers were given the appropriate training, and their vehicles were serviced regularly.

To find a solution, there is no need to assign blame in this latest tragic incident, although victims' families and friends should be offered our full support. But we must learn from this accident to avoid similar tragedies that are further down the road.

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.”