Readers of detective novels might enjoy coincidences, but the business world generally does not. So among many Japanese in Tokyo yesterday, there was only one question on their lips: Why did Emirates Airline and Etihad Airways each launch non-stop flights to Tokyo on the same day?
Was it a sign that the competition between the two companies was getting out of hand or was there a Japanese official with a wry sense of humour?
Kosapuro Morinaka, the chief executive of Narita Airport, said there was a simple explanation. The previous lack of service had been caused by a shortage of slots at the airport. "We have expanded the runways," he said. "Now there is room for more airlines to land."
But Emirates had been negotiating since 1998 for permission to land in Tokyo. Richard Vaughan, the divisional senior vice president of Emirates, said the reason was down to reluctance on the Japanese side, which was resolved only by bilateral talks between the governments of Japan and the UAE.
"After lengthy discussions the Japanese gave us 10 slots, which have been shared between us and Etihad," he said. "We would like to have more, at least one a day, so we are hoping that the Japanese government will have the good grace to give us two extra flights. We will keep negotiating."
And not to be outdone by Etihad and Emirates, Qatar Airways has also announced plans to launch flights to Tokyo by April 26. James Hogan, the chief executive of Etihad, said the airline's venture into the Japanese capital was a "historic moment" and would prove fruitful for both business and tourism.
The airline will run five direct flights to Narita every week, as well as the service to Nagoya, which was launched last month.
"Opening up the Abu Dhabi-to-Tokyo route is yet another important milestone that signifies the social, economic and cultural relationships that exist between the two," Mr Hogan said yesterday.
Mr Hogan said he expected "a high volume of traffic" on the route, particularly business travellers, and that the company "looks for aircraft to be at least 75 per cent full across all routes".
Ahmed Hussein, the deputy director general of the Abu Dhabi Tourism Authority and the chief operating officer of the Tourism Development and Investment Company, said Abu Dhabi had a lot to offer the thousands of Japanese tourists it hoped to host this year.
"The opening of this new route brings us into direct contact with a high potential tourism market," he said. "Last year, thousands of Japanese people visited Abu Dhabi and with the new route we are looking to significantly increase that figure. We have high hopes."
Referring to the competition between Emirates and Etihad, Mr Hogan said it was like the relationship between "Manchester City and Manchester United" football teams.
"[We are] both great teams and respect each other, but when we play, we play to win," he said.
Emirates, which celebrates its 25th birthday this year and whose first flight landed about five hours after its competitor, clearly sees itself more as the senior partner.
"We respect our competitors, Etihad and Qatar Airways, but we don't fear them," said Mr Vaughan.
"We are experienced and we have a very good product that we shall develop further. Our network is superior to just about everybody's and not just those two. Etihad coming here also does not affect us one way or the other."
Qatar Airways's expansion into Tokyo next month will be a daily service and become its second Japanese destination after Osaka. The new route coincides with promotional fares from Japan to 13 countries for travel between now and April 22.
"Tokyo is Japan's commercial and financial centre and has been on Qatar Airways's wish list of destinations for a number of years," said Akbar al Baker, the chief executive of Qatar Airways.
"It is only now that we are able to serve Tokyo due to new traffic rights and slot availability at the city's main Narita International Airport."
The airline said this month its fleet had grown to 80 aircraft with the delivery of its 15th Boeing 777, double its size from five years ago.
It will increase its deliveries further beginning in 2012 when New Doha International Airport opens, and by 2013 the airline expects to have 120 aircraft.
rwright@thenational.ae
munderwood@thenational.ae
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.
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.”
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
UAE currency: the story behind the money in your pockets
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
Last five meetings
2013: South Korea 0-2 Brazil
2002: South Korea 2-3 Brazil
1999: South Korea 1-0 Brazil
1997: South Korea 1-2 Brazil
1995: South Korea 0-1 Brazil
Note: All friendlies
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
ALRAWABI%20SCHOOL%20FOR%20GIRLS
%3Cp%3ECreator%3A%20Tima%20Shomali%3C%2Fp%3E%0A%3Cp%3EStarring%3A%C2%A0Tara%20Abboud%2C%C2%A0Kira%20Yaghnam%2C%20Tara%20Atalla%3C%2Fp%3E%0A%3Cp%3ERating%3A%204%2F5%3C%2Fp%3E%0A
The biog
Profession: Senior sports presenter and producer
Marital status: Single
Favourite book: Al Nabi by Jibran Khalil Jibran
Favourite food: Italian and Lebanese food
Favourite football player: Cristiano Ronaldo
Languages: Arabic, French, English, Portuguese and some Spanish
Website: www.liliane-tannoury.com
UAE currency: the story behind the money in your pockets
Defence review at a glance
• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”
• Prioritise a shift towards working with AI and autonomous systems
• Invest in the resilience of military space systems.
• Number of active reserves should be increased by 20%
• More F-35 fighter jets required in the next decade
• New “hybrid Navy” with AUKUS submarines and autonomous vessels
APPLE IPAD MINI (A17 PRO)
Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits
Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine
Storage: 128/256/512GB
Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4
Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps
Biometrics: Touch ID, Face ID
Colours: Blue, purple, space grey, starlight
In the box: iPad mini, USB-C cable, 20W USB-C power adapter
Price: From Dh2,099
BUNDESLIGA FIXTURES
Friday (all kick-offs UAE time)
Hertha Berlin v Union Berlin (10.30pm)
Saturday
Freiburg v Werder Bremen (5.30pm)
Paderborn v Hoffenheim (5.30pm)
Wolfsburg v Borussia Dortmund (5.30pm)
Borussia Monchengladbach v Bayer Leverkusen (5.30pm)
Bayern Munich v Eintracht Frankfurt (5.30pm)
Sunday
Schalke v Augsburg (3.30pm)
Mainz v RB Leipzig (5.30pm)
Cologne v Fortuna Dusseldorf (8pm)