Flydubai flies eight times a day between Dubai and Kuwait City. Randi Sokoloff / The National
Flydubai flies eight times a day between Dubai and Kuwait City. Randi Sokoloff / The National
Flydubai flies eight times a day between Dubai and Kuwait City. Randi Sokoloff / The National
Flydubai flies eight times a day between Dubai and Kuwait City. Randi Sokoloff / The National

Flydubai passengers to use Kuwait VIP terminal amid airport expansion


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Flydubai passengers on flights to and from Kuwait City will be able to make use of the VIP terminal usually reserved for private jets amid a US$6 billion expansion at the main airport terminal in the capital.

The expansion under way at Kuwait International Airport, a hub for Kuwait's airline Jazeera Airways and national carrier Kuwait Airways, is expected to increase annual capacity to 13 million passengers by 2016. Currently, it handles 6 million passengers a year.

A new $3bn terminal building will be added to the main airport. Kuwait’s directorate general of civil aviation will spend another $3bn to widen runways and set up a new cargo facility, among other upgrades.

During the expansion phase, the directorate is encouraging airlines to move to the Sheikh Saad Al Abdallah General Aviation Terminal.

Among the airlines currently using the main terminal are Lebanon's Middle East Airlines, Sharjah's Air Arabia and Emirates.

The Saad Al Abdallah terminal was opened in 2008 to cater to private flights as well as the publicly traded Wataniya Airways that flew to destinations in the Arabian Gulf, Middle East and Europe. However, it stopped operations in March 2011 because of “financial disorders and lack of cash liquidity”, according to the Kuwaiti airline’s website.

Since then, the terminal has mainly operated private jet and helicopter services.

Flydubai started operating from the new base last Saturday. Starting its operations to Kuwait with two flights a day in 2010, the airline now flies eight times a day between Dubai and Kuwait City. It carries 1 million passengers a year on the route using its Airbus A320 aircraft, flydubai said.

The passenger numbers for flydubai's Kuwait sector grew by 31 per cent last year. About 84 per cent of them end their journey in Dubai while the rest connects to other destinations on flydubai's network, such as Sri Lanka, the Maldives, India and Georgia, the airline said.

At the new terminal, it will take about 25 minutes for economy class passengers to pass through immigration, pick up luggage and exit the terminal, and about 10 minutes for business class passengers, according to flydubai.

The airline will introduce its business class services on select flights to Kuwait starting next month.

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French business

France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.

Your rights as an employee

The government has taken an increasingly tough line against companies that fail to pay employees on time. Three years ago, the Cabinet passed a decree allowing the government to halt the granting of work permits to companies with wage backlogs.

The new measures passed by the Cabinet in 2016 were an update to the Wage Protection System, which is in place to track whether a company pays its employees on time or not.

If wages are 10 days late, the new measures kick in and the company is alerted it is in breach of labour rules. If wages remain unpaid for a total of 16 days, the authorities can cancel work permits, effectively shutting off operations. Fines of up to Dh5,000 per unpaid employee follow after 60 days.

Despite those measures, late payments remain an issue, particularly in the construction sector. Smaller contractors, such as electrical, plumbing and fit-out businesses, often blame the bigger companies that hire them for wages being late.

The authorities have urged employees to report their companies at the labour ministry or Tawafuq service centres — there are 15 in Abu Dhabi.

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5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed

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.”