A rendering of the Bahrain International Airport expansion. Courtesy Kone Corporation
A rendering of the Bahrain International Airport expansion. Courtesy Kone Corporation
A rendering of the Bahrain International Airport expansion. Courtesy Kone Corporation
A rendering of the Bahrain International Airport expansion. Courtesy Kone Corporation

Bahrain awards airport revamp mass transit contract to Finnish company


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As part of the ongoing upgrade of its international airport, Bahrain has awarded the Finnish firm Kone the contract to supply 145 lifts and escalators for a new passenger terminal building.

The order is part of an extensive modernisation project at Bahrain International Airport (BIA), which is designed to handle 14 million passengers annually, up from the current nine million. The airport currently hosts more than 40 airlines and is home to the kingdom’s national carrier, Gulf Air. Kone will supply 85 elevators, 40 escalators, and 20 autowalks.

“The economic development in Bahrain has remained robust with its tourism industry expected to grow steadily to [be worth] almost US$1 billion by 2020,” said Pierre Liautaud, the executive vice president for Kone South Europe, Middle East and Africa.

The $1.1bn BIA modernisation programme is expected to be complete by the second quarter of 2020. The main developer is the Bahrain ministry of transportation and telecommunications (MTT).

Last year, a joint venture between the Dubai-listed Arabtec and Turkey’s TAV Construction won a major contact to build the passenger terminal at BIA.

The scope of the contract includes the construction of the terminal, a services building and aircraft bay, according to the state-owned Bahrain News Agency. The value of the contract was not specified.

The announcement was made by the MTT, in conjunction with the Bahrain Airport Company (BAC), during the Bahrain International Air Show 2016.

Other agreements included: an $11.7 million contract with China’s CIMC for the passenger air bridges; a $31m contract for the baggage handling system with Vanderlande from the Netherlands; and a $29.7m contract with the US-based L3 Communications for security screening equipment.

The airport modernisation is the largest infrastructure project undertaken by Bahrain International Airport in more than 30 years, said Mohamed Albinfalah, the chief executive of BAC.

“In order to keep up with the rapid pace of progress in the aviation industry, MTT in cooperation with BAC has put in place this ambitious programme, which will be implemented in phases,” he said.

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Dirham Stretcher tips for having a baby in the UAE

Selma Abdelhamid, the group's moderator, offers her guide to guide the cost of having a young family:

• Buy second hand stuff

 They grow so fast. Don't get a second hand car seat though, unless you 100 per cent know it's not expired and hasn't been in an accident.

• Get a health card and vaccinate your child for free at government health centres

 Ms Ma says she discovered this after spending thousands on vaccinations at private clinics.

• Join mum and baby coffee mornings provided by clinics, babysitting companies or nurseries.

Before joining baby classes ask for a free trial session. This way you will know if it's for you or not. You'll be surprised how great some classes are and how bad others are.

• Once baby is ready for solids, cook at home

Take the food with you in reusable pouches or jars. You'll save a fortune and you'll know exactly what you're feeding your child.

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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.”

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