By 2025, the Dubai government forecasts the economic effect of the drone industry to be in the tune of $8bn to $10bn. Ethan Miller / Getty Images / AFP
By 2025, the Dubai government forecasts the economic effect of the drone industry to be in the tune of $8bn to $10bn. Ethan Miller / Getty Images / AFP

Drone industry sets the UAE buzzing



Dubai wants to be the smartest city in the world by 2017.

This was the charter of the Dubai Smart Government Plan laid out last year. The government has been keenly trying out new technologies to help achieve this goal, and a firm step in this direction has been to develop services using unmanned aerial vehicles – more commonly known as drones.

Until not so long ago, drones were considered to be a public safety and security threat and their use seemed suited only to the military. But over the past years there has been a major change in perception towards drones, and they are slowly becoming a part of our lives.

Public entities across the world are adapting drone applications to add efficiency to their routine operations. London’s Metropolitan Police is planning to use drones for observation and surveillance. Similarly, police at the Fifa World Cup last year in Brazil also used surveillance drones to monitor crowds.

Drones are finding ready use in other fields as well. The Delft University of Technology in the Netherlands has developed a drone ambulance to provide emergency care to heart attack patients. This drone is controlled by a paramedic and is deployed in response to an emergency call, reducing the average time to receive care from about 10 minutes to one minute.

A key reason drones are managing to gain public acceptability has been the interest and involvement from the big industry players. About a year ago, the online retailer Amazon introduced the world to Prime Air, its drone-assisted delivery service. The company is banking on the drone technology to reduce the time it takes to deliver orders to its customers – even offering same-day delivery in some areas. The service is under technology trials and regulatory review.

Google, too, has been interested in the drone ecosystem. Google in April last year bought the solar drones and satellite maker Titan Aerospace. Then in August, the company announced successful tests of delivering small packages using drones in the Australian outback. Google calls this Project Wing and is running this initiative under its semi-secret research unit called Google X.

Similarly, the courier group DHL has invested in the parcelcopter propjet – a regular drone delivery service between the German mainland and Juist, a small island off Saxony.

The cumulative global market size for defence and commercial drones between 2013 and 2023 is estimated to be about US$98 billion, according to Business Insider, the tech news website. Of this, about 12 per cent would be purely for commercial and civilian applications.

However, the main stumbling block hindering the growth of the drones’ ecosystem is the regulatory environment. Although drone technology has evolved rapidly in the past few years, the regulatory framework to govern their use in civilian airspace is still in its nascent stages in most countries. The US Federal Aviation Administration on Sunday unveiled a proposal to permit businesses to use small unmanned aircraft, so long as they are flown at low altitudes by a person who is at least 17 years old, passes a knowledge test and gets an FAA certificate.

Flights wouldn’t be allowed out of sight of the operator or over crowds and could not exceed 160kph. The UAE Government sees drones as key to its smart government initiatives. To begin with, it wants to use drones to swiftly deliver government documents such as Emirates ID cards, driving licences and other permits to residents. This is aligned with the government’s aim to offer distributed services that reach residents rather than residents needing to reach out to the government.

There are also plans to develop specialised government-to-government drone services that can help in better collaboration across public entities.

With the government’s focus firmly on the drone technology, the regulatory and commercial aspects of the market are also expected to mature rapidly within the country. Regulations governing drone use are being drafted by the country’s cabinet in cooperation with the nation’s civil aviation authority. The government will also be looking at examples of other countries that already have stringent drone regulations in place, such as Canada.

It is widely expected that once the UAE drone law is released, all drones would need to be registered and licensed under recreational, commercial and scientific use categories. Further, the laws will also regulate the altitude and airways that the drones could use and the areas they could fly in. This will ensure that there are no interferences with operations at airports, commercial airlines, government buildings and similar sensitive locations.

By 2025, the Dubai government forecasts the economic effect of the drone industry to be in the tune of $8bn to $10bn. It also expects to establish the emirate as an important hub for the global drone industry by the turn of the decade.

In a bid to further boost the drone industry, in February last year, the UAE Drones For Good Award was launched – a $1 million prize for showcasing the best use of civilian drones for improving people’s lives. Its first winner, Gimball, by the Swiss start up Flyability, was awarded during this month’s UAE Government Summit for its spherical design and its search and rescue applications.

Other innovations that proved popular with the awards panel included Sanad, a drone developed in the UAE that can be used for life-saving missions, particularly during rescues at beaches; and Wadi Drone, another locally developed machine that can be used in wildlife conservation and environmental protection.

Abhinav Purohit is a UAE-based strategy consultant specialising in the telecoms, ICT and smart city domains.

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The specs: 2019 GMC Yukon Denali

Price, base: Dh306,500
Engine: 6.2-litre V8
Transmission: 10-speed automatic
Power: 420hp @ 5,600rpm
Torque: 621Nm @ 4,100rpm​​​​​​​
​​​​​​​Fuel economy, combined: 12.9L / 100km

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MATCH INFO

CAF Champions League semi-finals first-leg fixtures

Tuesday:

Primeiro Agosto (ANG) v Esperance (TUN) (8pm UAE)
Al Ahly (EGY) v Entente Setif (ALG) (11PM)

Second legs:

October 23

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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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The specs
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Power: 181bhp

Torque: 244Nm

Price: Dh122,900 

ULTRA PROCESSED FOODS

- Carbonated drinks, sweet or savoury packaged snacks, confectionery, mass-produced packaged breads and buns 

- margarines and spreads; cookies, biscuits, pastries, cakes, and cake mixes, breakfast cereals, cereal and energy bars;

- energy drinks, milk drinks, fruit yoghurts and fruit drinks, cocoa drinks, meat and chicken extracts and instant sauces

- infant formulas and follow-on milks, health and slimming products such as powdered or fortified meal and dish substitutes,

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The British in India: Three Centuries of Ambition and Experience

by David Gilmour

Allen Lane

Company profile

Company name: Suraasa

Started: 2018

Founders: Rishabh Khanna, Ankit Khanna and Sahil Makker

Based: India, UAE and the UK

Industry: EdTech

Initial investment: More than $200,000 in seed funding

RESULT

Huddersfield Town 1 Manchester City 2
Huddersfield: Otamendi (45' 1 og), van La Parra (red card 90' 6)
Man City: Agüero (47' pen), Sterling (84')

Man of the match: Christopher Schindler (Huddersfield Town)

Shubh Mangal Saavdhan
Directed by: RS Prasanna
Starring: Ayushmann Khurrana, Bhumi Pednekar

Haircare resolutions 2021

From Beirut and Amman to London and now Dubai, hairstylist George Massoud has seen the same mistakes made by customers all over the world. In the chair or at-home hair care, here are the resolutions he wishes his customers would make for the year ahead.

1. 'I will seek consultation from professionals'

You may know what you want, but are you sure it’s going to suit you? Haircare professionals can tell you what will work best with your skin tone, hair texture and lifestyle.

2. 'I will tell my hairdresser when I’m not happy'

Massoud says it’s better to offer constructive criticism to work on in the future. Your hairdresser will learn, and you may discover how to communicate exactly what you want more effectively the next time.

3. ‘I will treat my hair better out of the chair’

Damage control is a big part of most hairstylists’ work right now, but it can be avoided. Steer clear of over-colouring at home, try and pursue one hair brand at a time and never, ever use a straightener on still drying hair, pleads Massoud.

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million