Emirates Global Aluminium, the largest industrial company in the United Arab Emirates outside oil and gas, Mubadala and Dubal Holding completed a major milestone with the first firing of the Siemens Energy H-class gas turbine at a new Dh1 billion state-of-the-art power plant under development at EGA’s Jebel Ali site. Courtesy EGA
Emirates Global Aluminium, the largest industrial company in the United Arab Emirates outside oil and gas, Mubadala and Dubal Holding completed a major milestone with the first firing of the Siemens Energy H-class gas turbine at a new Dh1 billion state-of-the-art power plant under development at EGA’s Jebel Ali site. Courtesy EGA
Emirates Global Aluminium, the largest industrial company in the United Arab Emirates outside oil and gas, Mubadala and Dubal Holding completed a major milestone with the first firing of the Siemens Energy H-class gas turbine at a new Dh1 billion state-of-the-art power plant under development at EGA’s Jebel Ali site. Courtesy EGA
Emirates Global Aluminium, the largest industrial company in the United Arab Emirates outside oil and gas, Mubadala and Dubal Holding completed a major milestone with the first firing of the Siemens E

EGA, Mubadala and Dubal Holding fire up Siemens gas turbine at Jebel Ali power plant


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Emirates Global Aluminium, Mubadala and Dubal Holding completed the first firing of a Siemens Energy H-class gas turbine at the new Dh1 billion power plant under development at EGA’s Jebel Ali site.

Over the coming months, other facilities at the plant will be completed and integrated to achieve a generation capacity of over 600 megawatts of electricity, EGA said in a statement on Wednesday. It expects the project to be fully completed in the summer.

"We are making good progress on delivering this important project, despite all the challenges of 2020," Abdulnasser Bin Kalban, chief executive of EGA, said.

"This new power plant will improve the efficiency of power generation at EGA even further. That means lower costs in natural gas, and lower costs to the planet. Many applications of aluminium contribute to sustainability, but the environmental impact of how it is made also matters.”

As part of the UAE's Energy Strategy 2050, the country aims to reduce its carbon footprint of power generation by 70 per cent and to increase energy efficiency by 40 per cent.

The new power block at EGA is being developed by JA Power & Water Company, a joint venture between Abu Dhabi's Mubadala and Dubai Holding. EGA said it intends to buy power from the joint venture for 25 years following commissioning.

EGA expects the new power block to lower greenhouse gas emissions from its power-generation and aluminium-smelting operations at Jebel Ali by some 10 per cent, the equivalent of planting more than 17 million trees each year, it said.

Nitrogen oxide emissions, which are also emitted by cars, are expected to decrease by as much as 58 per cent or the equivalent of removing more than 850,000 cars from the road.

The project is the first time a Siemens Energy H-class gas turbine has been deployed in the global aluminium industry, EGA said.

"This proven technology will help to decarbonise the UAE’s industrial sector," Dietmar Siersdorfer, managing director of Siemens Energy in the Middle East and UAE, said.

Once the new power block is fully operational, five older, smaller and less efficient turbines at EGA’s Jebel Ali site will be put on standby for use only in emergencies, the company said.

Earlier this year, EGA said it has made the UAE the first country in the world to produce aluminium using solar power.

On February 2, German car maker BMW signed a deal with the EGA to source the metal made using solar power, as it looks to slash carbon emissions.

The Munich-based car manufacturer signed a "triple-digit million euro contract" with EGA to supply it with 43,000 metric tonnes of aluminium, which will be produced using power from Dubai's Mohammed Bin Rashid Al Maktoum Solar Park.

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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Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

Profile

Company: Justmop.com

Date started: December 2015

Founders: Kerem Kuyucu and Cagatay Ozcan

Sector: Technology and home services

Based: Jumeirah Lake Towers, Dubai

Size: 55 employees and 100,000 cleaning requests a month

Funding:  The company’s investors include Collective Spark, Faith Capital Holding, Oak Capital, VentureFriends, and 500 Startups.