Abu Dhabi becomes the place to buy time



Struggle is a word many city-dwellers associate with the daily commute: traffic; the search for parking; the hunt for the perfect cup of coffee with the shortest queue.

All this boils down to one thing – time; namely, how much of it we spend stuck doing things we don’t need to be doing. These are hours that could be spent working, helping the kids with homework, or contributing to the community.

The true promise of a smart city, to many, is simple: getting these hours back.

Implementing systems that make our days more streamlined and our societies, therefore, more productive. A number of these systems were on showcase at the Consumer Electronics Show, a major benchmark for the technology industry hosted this month in Las Vegas.

Many of us already use GPS to plot our driving routes. As our cities get smarter, these systems will become ubiquitous, meaning speed limits can be calculated, adjusted and enforced on a car-by-car basis. Traffic as we know it today will cease to exist as our cities communicate to every commuter the perfect route, and the exact speed needed to avoid causing a jam.

As we are driving, our cars will also communicate with our cities to find the best parking – not parking that’s open, per se, but parking that’s statistically likely to be open based on the historical patterns of the location. Current systems being tested by the likes of Audi can calculate this up to a 97 per cent accuracy rate.

And, all the while, our smartphones are communicating our location to local stores, placing our orders based on preferred coffee shops and their current customer load. Our order will be placed at the perfect time, based on full knowledge of the traffic we’ll encounter and how long we’ll need to walk from our parking spot, to ensure our piping hot espresso is ready the moment we walk in the door.

The time we save from that whole process, potentially hours a day, we’ll put into new project plans in the morning, and time with kids in the evening. Billions of dollars in productivity added to our cities through technologies being refined today.

The billions of micro-mechanical sensors, or Mems, required to make these cities a reality will need to be more energy efficient and powerful than those in existence today. Backed by the Advanced Technology Investment Company (Atic) and Masdar Institute, and in partnership with leading research institutions from around the world, a broad suite of research is taking place in Abu Dhabi that stands to significantly increase the energy efficiency and independent viability of Mems sensors.

In the future, when a parking space communicates with your car to tell you it’s empty, a bridge communicates with the city to say it’s overloaded for the weather conditions, or a sensor inside your body communicates with your smart phone to tell you to avoid the whole drive and take a sick day, there’s a real chance you’ll be able to thank Abu Dhabi-based research for making your day a little bit easier.

business@thenational.ae

At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

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 biog

Favourite films: Casablanca and Lawrence of Arabia

Favourite books: Start with Why by Simon Sinek and Good to be Great by Jim Collins

Favourite dish: Grilled fish

Inspiration: Sheikh Zayed's visionary leadership taught me to embrace new challenges.

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.