Nico Hulkenberg is the front-runner to replace Kimi Raikkonen at lotus. Diego Azubel / EPA
Nico Hulkenberg is the front-runner to replace Kimi Raikkonen at lotus. Diego Azubel / EPA
Nico Hulkenberg is the front-runner to replace Kimi Raikkonen at lotus. Diego Azubel / EPA
Nico Hulkenberg is the front-runner to replace Kimi Raikkonen at lotus. Diego Azubel / EPA

Hulkenberg and Massa in race for Raikkonen’s vacancy at Lotus


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SUZUKA, JAPAN // Nico Hulkenberg and Felipe Massa are the frontrunners to replace Kimi Raikkonen at Lotus next season, but the team must first secure fresh investment, principal Eric Boullier said yesterday.

“Hulkenberg and Massa are the two drivers you have to consider because of their experience and profile,” the Frenchman said at the Japanese Grand Prix.

Germany’s Hulkenberg, currently with Swiss-based Sauber and on his third team in three seasons, wants his future sorted soon.

“What I have basically said is that I would like to have clarification or certainty by the end of October,” he said.

Boullier hoped that would be possible, but it depended on the team, who won titles as Benetton and Renault and are currently fourth overall in the championship, finalising a long-awaited deal with new partners.

Lotus announced in June that Infinity Racing consortium – made up of private investors including an American hedge-fund manager, and Emaar, an Abu Dhabi-based multinational business group – had acquired a 35 per cent stake.

The team reports that the deal has yet to be finalised. “We want to now close this Infinity partner story, because this should give us the ability to be at least secure and going into the next step,” Boullier said.

“There is this part and a big sponsorship part being discussed and I think we are nearly there. Once we have done this, we can afford to pick the driver we want.

“It could be tomorrow, it could be next week but ... I will not bring Nico here if we see we cannot afford him.”

Lotus are the only team yet to confirm their engine supplier for 2014, although it is sure to be Renault.

“We would like to discuss a branding opportunity with them and maybe something even closer,” he said. “Everything is ready to be signed, everything is the same as Red Bull [who also use Renault engines]. I am just waiting a little bit to ensure no stone is left unturned.”

As to whether Hulkenberg is the main candidate to replace Raikkonen, the 2007 world champion who is returning to Ferrari in place of Felipe Massa, the Frenchman said: “We cannot only rely on Nico, but Nico is obviously one of the targets, yes.”

Massa has 11 wins for Ferrari, although none since 2008, and said he is optimistic about staying in the sport.

Hulkenberg’s position at financially struggling Sauber is uncertain. The team is expected to use Russian Sergey Sirotkin, 18, as part of a deal with new Russian partners. Sauber’s other driver, Mexican Esteban Gutierrez, brings important sponsorship.

An alternative to Hulkenberg and Massa would be a driver bringing finance with him, but Boullier said Lotus, who have struggled to pay Raikkonen his wages this season, would be reluctant to venture down that road.

“This is not the way to go. We are here to compete at the highest level and the ambition of the team and owners is to compete at the highest level,” he said.

Boullier said everyone at the Lotus factory had been paid and was not worried about other staff following Raikkonen out the door. Technical director James Allison and Dirk de Beer have already left.

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The specs

Engine: 0.8-litre four cylinder

Power: 70bhp

Torque: 66Nm

Transmission: four-speed manual

Price: $1,075 new in 1967, now valued at $40,000

On sale: Models from 1966 to 1970

The specs: 2018 Renault Megane

Price, base / as tested Dh52,900 / Dh59,200

Engine 1.6L in-line four-cylinder

Transmission Continuously variable transmission

Power 115hp @ 5,500rpm

Torque 156Nm @ 4,000rpm

Fuel economy, combined 6.6L / 100km

The BIO:

He became the first Emirati to climb Mount Everest in 2011, from the south section in Nepal

He ascended Mount Everest the next year from the more treacherous north Tibetan side

By 2015, he had completed the Explorers Grand Slam

Last year, he conquered K2, the world’s second-highest mountain located on the Pakistan-Chinese border

He carries dried camel meat, dried dates and a wheat mixture for the final summit push

His new goal is to climb 14 peaks that are more than 8,000 metres above sea level

Russia's Muslim Heartlands

Dominic Rubin, Oxford

Who was Alfred Nobel?

The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.

  • In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
  • Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
  • Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
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Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.

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.”

The cost of Covid testing around the world

Egypt

Dh514 for citizens; Dh865 for tourists

Information can be found through VFS Global.

Jordan

Dh212

Centres include the Speciality Hospital, which now offers drive-through testing.

Cambodia

Dh478

Travel tests are managed by the Ministry of Health and National Institute of Public Health.

Zanzibar

AED 295

Zanzibar Public Health Emergency Operations Centre, located within the Lumumba Secondary School compound.

Abu Dhabi

Dh85

Abu Dhabi’s Seha has test centres throughout the UAE.

UK

From Dh400

Heathrow Airport now offers drive through and clinic-based testing, starting from Dh400 and up to Dh500 for the PCR test.