US-based tech company Gecko Robotics expects to start manufacturing robots in the UAE by next year after signing deals with local companies, its co-founder and chief executive has said.
The company, which claims to have a $1.25 billion valuation, is considering plans to expand its offices in the UAE and hire more local talent as part of three agreements signed with state-run Adnoc and other UAE entities, Jake Loosararian told The National in Abu Dhabi.
The company, which closed its series D funding round in June, is looking , its co-founder and chief executive told The National in an interview in Abu Dhabi.
Manufacturing of robots locally is likely to begin “within the next year”, he said.
Gecko signed three contracts on Sunday with Adnoc Gas, AIQ and Adnoc Technical Academy for robotics, AI-powered analytics and joint training programmes.
“We would look for as many [local] partnerships as we possibly could to expedite manufacturing, but in some cases, with the technology that we build, that might not exist in the ecosystem. And we would build our own facility,” he said.
“The majority of our robots are made in the US, and then we deploy them to different locations. But yes, as you can imagine, manufacturing will begin to occur outside of the US with contracts like this.”
Gecko, which supplies robotics for the US military, will use a separate UAE-based entity to work on its regional projects.
“We separate them all out to ensure that they’re secure, and also that we run these groups by rules and guidelines of the countries, as well as that of the military,” Mr Loosararian said.
Adnoc has been using Gecko's robots for the “last 18 months”, he added.
Gecko’s wall-climbing robots use specially designed sensor payloads to detect otherwise invisible damage, allowing for precision repairs and predictive maintenance.
The new deals have software and new capabilities that Adnoc now has access to.
Gecko, which secured $125 million in a series D round from Cox Enterprises, and continuing investors USIT, XN, Founders Fund and YCombinator in June, has no plans to list for now, Mr Loosararian said.
“We won't really think about an IPO [initial public offering] for the next couple years,” he said.
“We're just focused on delivering results and we'll scale privately, as long as we need to, to be able to deliver those.”
Gecko is also in discussions with other energy companies in the region as it looks to scale up its robotics manufacturing and supply in the region.
“The business, luckily, has a bunch of revenue, and so we're deploying more and more of the capital we raised into scale. And so scaling is the big thing right now,” Mr Loosararian said.
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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Company%C2%A0profile
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RESULTS
6.30pm UAE 1000 Guineas Trial Conditions (TB) US$100,000 (Dirt) 1,400m
Winner Final Song, Christophe Soumillon (jockey), Saeed bin Suroor (trainer).
7.05pm Handicap (TB) $135,000 (Turf) 1,000m
Winner Almanaara, Dane O’Neill, Doug Watson.
7.40pm Handicap (TB) $175,000 (D) 1,900m
Winner Grand Argentier, Brett Doyle, Doug Watson.
8.15pm Meydan Challenge Listed Handicap (TB) $175,000 (T) 1,400m
Winner Major Partnership, Patrick Cosgrave, Saeed bin Suroor.
8.50pm Dubai Stakes Group 3 (TB) $200,000 (D) 1,200m
Winner Gladiator King, Mickael Barzalona, Satish Seemar.
9.25pm Dubai Racing Club Classic Listed Handicap (TB) $175,000 (T) 2,410m
Winner Universal Order, Richard Mullen, David Simcock.
ONCE UPON A TIME IN GAZA
Starring: Nader Abd Alhay, Majd Eid, Ramzi Maqdisi
Directors: Tarzan and Arab Nasser
Rating: 4.5/5
GRAN%20TURISMO
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Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
The Saga Continues
Wu-Tang Clan
(36 Chambers / Entertainment One)
Our legal advisor
Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.
Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.
Education: Sagesse University, Beirut, Lebanon, in 2005.
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