Etihad is the only airline operating direct services from Ireland to the Middle East, flying from Dublin 10 times a week. Andrew Parsons / The National
Etihad is the only airline operating direct services from Ireland to the Middle East, flying from Dublin 10 times a week. Andrew Parsons / The National

Etihad to double Irish staff numbers to 200



Etihad Airways is to hire 100 more Irish cabin crew, more than doubling its number of employees from the country.

The recruitment drive will provide a welcome, if small, boost to Ireland's economy as it strives to rebound from sovereign and banking debt woes.

"We've built close relationships with Ireland and with Irish communities around the world since we began our service to Dublin four years ago," said James Hogan, the carrier's chief executive.

Etihad is the only airline operating direct services from Ireland to the Middle East, flying from Dublin 10 times a week.

But competition to carry passengers between Ireland and the UAE is expected to increase from January when Emirates Airline launches daily services from Dublin to Dubai. Over four years, Etihad has invested more than €16 million (Dh78m) in Ireland, with the cash going towards the airline's premium lounge and ground operations at the capital's airport. The airline has also invested in sponsorship in the Gaelic sport of hurling.

Ireland's economic growth is expected to cool in the second half of this year, in part because of the deteriorating outlook in the euro zone. Unemployment stands at about 14 per cent, with job openings limited by reduced government spending and a sluggish private sector.

The airline will hold cabin-crew recruitment open days in Dublin on November 30 and December 1. It plans to hold further open days in Cork and Belfast.

Mr Hogan, who is in Dublin to participate in the Global Irish Economic Forum, said Etihad appreciated the support received from Ireland since its services began. "Over the coming months and years, you will see that support repaid with continuing investment in the route and in our relationships here in the Irish market."

A significant portion of the 640,000 passengers Etihad has carried to date from Ireland have been bound for destinations beyond Abu Dhabi in Asia and Australasia. Emirates said it expected a similar trend on its flights when it announced its launch plans last month.

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Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh

Based: Cairo, Egypt

Sector: transport

Size: 450 employees

Investment: approximately $80 million

Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani

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Number of tracks: 11

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Company/date started: 2015

Founder/CEO: Mohammed Toraif

Based: Manama, Bahrain

Sector: Sales, Technology, Conservation

Size: (employees/revenue) 4/ 5,000 downloads

Stage: 1 ($100,000)

Investors: Two first-round investors including, 500 Startups, Fawaz Al Gosaibi Holding (Saudi Arabia)

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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

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.”