Seagliders that travel at high speeds over water will be built in the UAE following the signing of an agreement between the US maritime transport company Regent and Abu Dhabi Investment Office on Thursday.
Boston start-up Regent has also signed an agreement with Abu Dhabi's Department of Transport to integrate its electric-powered seaglider into the existing UAE transportation network, with a focus on high-impact routes, such as offshore services to Delma Island and Sir Bani Yas Island.
Regent is in the development stages of its passenger craft, Viceroy, which uses wing-in-ground effect to travel at speeds of up to 290kph within a wingspan of the water's surface, cutting travel times between coastal cities by more than half.
The company, which has demonstrated its float, foil and fly technology in testing on a quarter-scale model, is now building a full-scale 20-metre wingspan model capable of carrying 12 passengers and two crew to test its use before going into full production next year at its base in Rhode Island.
You're talking 50 per cent reduction in operating costs, which ostensibly all gets passed on to the customer as savings by going to seagliders
Billy Thalheimer,
Regent
Regent has had significant support from the industry and investors in raising its $60 million Series A Funding, including Abu Dhabi's Strategic Development Funds and Neom Investment Fund, which made the single largest investment in the round.
There has also been backing from Japan Airlines, Hawaiian Airlines, Lockheed Martin and Shark Tank star and billionaire Mark Cuban, with total investment now standing at $90 million.
Co-founder and chief executive Billy Thalheimer said Regent also has a backorder of more than $9 billion from airline and ferry operators for both the Viceroy craft and the larger 100-passenger Monarch, which he expects will transform regional transport for coastal areas.
Regent has manufacturing and test facilities in Rhode Island and is "looking at other sites within the US" to develop its building capacity, Mr Thalheimer told The National.
To help meet orders in the Middle East, Europe and Indo-Pacific regions, Regent will "localise sea glider manufacturing in Abu Dhabi", he said.
"We’re working right now with Adio on the plan. Our intention is to establish manufacturing by the end of the decade," he said.
"The next step is to pull in all the relevant players, do site identification, manufacturing readiness and figure out what the whole plan looks like as to when can we start and what manufacturing will entail in Abu Dhabi."
Regent will be part of the Smart and Autonomous Vehicles Industry (Savi) cluster, located in Masdar City, which aims to develop smart and self-driving vehicles for air, land and sea use.
Established as a multi-modal hub in October, Savi is expected to contribute between Dh90 billion and Dh120 billion ($24.5 billion to $32.7 billion) to the UAE's economy and generate up to 50,000 jobs.
Badr Al Olama, the director general of Adio, said Regent will "shape the future of coastal transportation".
"With immense speed and efficiency, I’m confident Abu Dhabi will see the global deployment of electric seagliders and these will dramatically change how goods and people move between the world’s coastal areas going forward," Mr Al Olama said in a news release on Thursday.
Production capacity will depend on demand, but Regent already has firm orders from an unnamed Abu Dhabi-based commercial operator and another in Egypt.
Final details on what will be built in Abu Dhabi are still being thrashed out, he said, but the plan is to have full production facilities in the emirate.
"What we're manufacturing is still part of the discussion," Mr Thalheimer said.
"The intention is to manufacture something but the goal would be full seagliders, and the next step is really figuring out what it actually looks like, putting the nuts and bolts of the details of the deal together."
Fly like a bird
Wing-in-ground effect technology has been around for more than 60 years and is based on using aerodynamic lift plus air pressure generated by flying close to the water surface – the same principle that allows gulls to glide low over the water.
Regent’s seaglider is designed with an intermediary position between boat and glider, popping up on a hydrofoil, allowing it to navigate busier waterways and inclement weather.
Once it has motored out of a harbour on a hydrofoil, the seaglider takes off at a low speed using the water as a runway, then flies over the waves at a top speed of 290kph.
It allows for quick access around coastal waters, particularly from islands to mainland, and is capable of serving routes of up to 300km with existing battery technology and 800km with next-gen batteries.
Abu Dhabi's Department of Transport, in an agreement announced at the DriftX event on Thursday, will integrate the use of seagliders in the emirate, starting with Delma Island, where 10,000 residents mainly use a once-daily flight to access services on the mainland, and Sir Bani Yas Island, home to a protected wildlife reserve and the Desert Islands Resort & Spa by Anantara.
"Currently, it’s [Delma] serviced by Q400 turbo props with one flight a day," Mr Thalheimer said.
"You can imagine how inconvenient it is to have to take an aircraft which only goes once a day to leave your home to access economic opportunities, education, medical care. Seagliders increase the flexibility and access to the mainland for those on Delma Island."
Smart plans
Abu Dhabi has been working on providing residents with smarter, more efficient modes of transport.
In February, Abu Dhabi and Shenzhen signed a twin-city agreement to share knowledge and collaborate on smart city projects across several areas including infrastructure, city planning, green mobility, transport, advanced technology, autonomous solutions, sustainability and urban development.
Abu Dhabi is also trialling driverless taxis in the emirate, while flying taxis are expected to hit Abu Dhabi and Dubai skies next year, cutting travel times significantly between the two emirates.
Mr Thalheimer said the seagliders will also help with inter-emirate connectivity and offer commuters an option to avoid busy motorways between Abu Dhabi and Ras Al Khaimah.
"Right now, if you look at Abu Dhabi to Ras Al Khaimah, you're talking about a two and a half hour drive, at best. But [with seagliders] you will be able to do day trips and can do that trip in under an hour.
"It’s sort of like a Gulf Metro that seagliders would create here, which the DoT can operate."
The trip between Abu Dhabi and Dubai is one of the busiest road journeys in the UAE. Offering high-speed connections on water between the two cities would cut travel times by more than half.
"Seaglider would be about equal on that route. It would be a little faster than a car because you’re moving faster but obviously a car goes door to door but the seaglider has to go to the dock first.
"It would be about 25 minutes in terms of the voyage itself. So we can cut the travel time in half."
In December, Regent signed an agreement with Aramex, the Middle East's largest courier firm, to develop electric seagliders for middle-mile logistics.
It is also working with Saudi Arabia's Neom project to provide connectivity around the islands along the coastline, particularly Sindalah.
"Neom is looking for better connectivity – faster, cheaper, greener, more comfortable connectivity throughout the islands of the Red Sea," he said.
Of particular interest for airlines and ferry operators is the Monarch, which Mr Thalheimer said will enter into service "before the end of the decade".
"All of this technology, the ground effect even the hydrodynamics of the hydrofoil scales really well with size," he said.
"Aircraft flying at altitude, the bigger they get, the heavier they get, the more energy intensive they get, the harder it is to fly large aircraft with batteries."
He said ground effect offers an efficient form of flying that gives it a distinct advantage over aircraft.
"Always being over a place to land is very efficient in terms of how much reserve fuel you need to carry and the hydrodynamic scale very well with size," he said.
"You're talking 50 per cent reduction in operating costs, which ostensibly all gets passed on to the customer as savings by going to seagliders and by going to that large Monarch variant."
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 247hp at 6,500rpm
Torque: 370Nm from 1,500-3,500rpm
Transmission: 10-speed auto
Fuel consumption: 7.8L/100km
Price: from Dh94,900
On sale: now
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Abu Dhabi World Pro 2019 remaining schedule:
Wednesday April 24: Abu Dhabi World Professional Jiu-Jitsu Championship, 11am-6pm
Thursday April 25: Abu Dhabi World Professional Jiu-Jitsu Championship, 11am-5pm
Friday April 26: Finals, 3-6pm
Saturday April 27: Awards ceremony, 4pm and 8pm
The years Ramadan fell in May
Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.
Based: Riyadh
Offices: UAE, Vietnam and Germany
Founded: September, 2020
Number of employees: 70
Sector: FinTech, online payment solutions
Funding to date: $116m in two funding rounds
Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices
The biog
Marital status: Separated with two young daughters
Education: Master's degree from American Univeristy of Cairo
Favourite book: That Is How They Defeat Despair by Salwa Aladian
Favourite Motto: Their happiness is your happiness
Goal: For Nefsy to become his legacy long after he is gon
THE SPECS
Engine: 1.5-litre turbocharged four-cylinder
Transmission: Constant Variable (CVT)
Power: 141bhp
Torque: 250Nm
Price: Dh64,500
On sale: Now
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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.”
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
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Should late investors consider cryptocurrencies?
Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.
They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.
“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.
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The specs
Engine: 6.2-litre V8
Transmission: seven-speed auto
Power: 420 bhp
Torque: 624Nm
Price: from Dh293,200
On sale: now
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