Eshraq to re-start work in The Gateway, 500 flats on Reem Island

Abu Dhabi-listed Eshraq Properties plans to restart work on two major schemes in Abu Dhabi this year.

The property developer, which floated on the Abu Dhabi Securities Exchange in 2011, said it planned to start work on The Gateway mixed-use scheme of 15 towers and two blocks of serviced apartments on Abu Dhabi island and up to 500 flats on Reem Island in the last quarter.

Eshraq, which recorded losses every quarter since its listing and reported them for last year of Dh1.2 million (US$327,000) said it was pressing ahead with the projects in the capital because the Abu Dhabi market was beginning to stabilise.

"We feel it is the right time to build," said Abdul Fattah Al Barghouthi, the investment manager at Eshraq, on the sidelines of the Cityscape Abu Dhabi property show. "The market is stable and we can see indications that demand is coming back."

Mr Al Barghouthi pointed to Eshraq's delayed The Gateway scheme, which is located between the Sheikh Zayed Bridge and the Maqta Bridge next to the new cultural heritage souq announced this week by Abu Dhabi Municipality.

The Gateway project, originally intended to be built in 2009, would cost Dh1 billion to develop, Eshraq said. It is likely to include about 1 million square feet of developed area in towers ranging between 15 and 18 storeys. All of the apartments would be leased to tenants rather than sold.

However, Mr Al Barghouthi added that the company is waiting for final approvals from the Department of Transport before finalising its designs.

"We are receiving many offers [to provide development finance] from not only banks but from investors who are ready to inject cash," he said. "There are investors who would like to put money into our schemes as a sort of joint venture but it's still in negotiation."

Eshraq originally owned 21 plots of land on Reem Island but sold 17 of them to subdevelopers before the financial crisis hit.

The company plans to start work on up to 500 apartments on the island by the end of the year, building either one or two residential towers of 250 apartments each. Each Marina Rise tower will cost about Dh250m to build, Mr Al Barghouthi added.

"From an engineering point of view, from a design point of view, everything is ready to start development," he said. "But the decision of whether to go with two towers together or start with the first one and see what is the reaction, it's another call. We are not sure whether the market will help us to sell out the two towers. But if we see good demand with the first one then we might go ahead and kick off the second one too."

The company is also planning to start work on the first phase of its Jumeirah Rise project of two blocks of apartments and a hotel in Dubai in the third quarter of the year. In total, the scheme will cost Dh250m to develop.

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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.”

Electoral College Victory

Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.

Popular Vote Tally

The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.

MATCH INFO

Uefa Champions League semi-final, first leg

Barcelona v Liverpool, Wednesday, 11pm (UAE).

Second leg

Liverpool v Barcelona, Tuesday, May 7, 11pm

Games on BeIN Sports

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

ICC Women's T20 World Cup Asia Qualifier 2025, Thailand

UAE fixtures
May 9, v Malaysia
May 10, v Qatar
May 13, v Malaysia
May 15, v Qatar
May 18 and 19, semi-finals
May 20, final

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Director: Louis Theroux

Starring: Daniella Weiss, Ari Abramowitz

Rating: 5/5

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The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.

It then dropped to an estimated 111,000 in the year to June 2020 when restrictions introduced during the pandemic limited travel and movement.

The total rose to 254,000 in the year to June 2021, followed by steep jumps to 634,000 in the year to June 2022 and 906,000 in the year to June 2023.

The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.

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The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Part three: an affection for classic cars lives on

Read part two: how climate change drove the race for an alternative

Read part one: how cars came to the UAE

The biog

Favourite hobby: I love to sing but I don’t get to sing as much nowadays sadly.

Favourite book: Anything by Sidney Sheldon.

Favourite movie: The Exorcist 2. It is a big thing in our family to sit around together and watch horror movies, I love watching them.

Favourite holiday destination: The favourite place I have been to is Florence, it is a beautiful city. My dream though has always been to visit Cyprus, I really want to go there.