Firms vie to provide defence system



Global aerospace firms are vying for the next major part of the nation's defence system: a computer network that will gather radar data to co-ordinate the launch of missiles and fighter jets. Defence executives, who expect the Air Force Air Defence to issue a formal request for proposals for a battle management system in the next few months, say it is critical to ensuring that expensive military hardware can destroy incoming missiles and enemy aircraft.

They expect the system to cost several hundred million dollars and expand as the UAE introduces new missile systems and radar technology. A number of international defence firms including Raytheon, Thales, Lockheed Martin, Boeing and Northrop Grumman expressed interest in supplying a battle management system to the UAE at this week's Dubai Air Show. "As the UAE acquires more defensive weapons systems, in order to get maximum benefit you need to be able to co-ordinate their use and you need to be able to react in the timelines governed by the speed of any potential attack," said Jim Julian, the director of C4I Systems at Thales Raytheon Systems, a joint venture firm that hopes to supply the new network.

The system is crucial "to prevent any potential destruction of your own aircraft", Mr Julian said. A unified battle management system is essentially a giant computer system that combines the data of hundreds of sensors from the air, sea and land into a coherent, simplified view for military commanders, said Paul Casey, the senior director of international business development for integrated systems at Lockheed Martin.

The system gives commanders a picture "of the blue forces at their disposal - either air, ground or maritime - and where the potential enemy or threat is", Mr Casey said. "The needs are for a joint system for the defence of your national territory," he said, referring to the UAE. "You have a requirement for the defence of your critical national infrastructure - and you have taken a joint view of this, not purely looking from an air force point of view."

The UAE has radars and a battle management system from Northrop Grumman that covers part of its needs, but operates other systems as well. The plan is for the new network to handle all defence functions and give a unified picture of threats to commanders across the country. It would also detect cyber attacks and give the Armed Forces options to respond in kind, executives said. Dennis Muilenburg, the president and chief executive of Boeing Integrated Defence Systems, is expecting a great amount of competition between major firms for the contract.

"We expect this to be a competitive marketplace," Mr Muilenburg said. "We are more than happy to compete any time we can have a fair and open competition." In sales pitches to the media and UAE military officials, the major defence firms each stressed their experience in fielding large systems, both in the region and in western countries. Raytheon's technology, for example, will play a key role in the new battle management system that is being deployed across members of the North Atlantic Treaty Organisation and will cost at least US$1 billion (Dh3.67bn), Mr Julian said.

And Raytheon's products already form a cornerstone of the GCC-wide Hizam al Ta'awun aircraft tracking system, he added. Lockheed Martin stressed the ability for its technology to be easily integrated with more advanced sensor and weapons systems, including new technologies deployed in space. "If you can add a space piece to it, then you will go beyond your typical sensing capabilities and you will be able to have truly a regional perspective," said Marty Thamm, a director for surveillance and navigation systems at Lockheed Martin Space Systems.

Northrop Grumman has the best idea of the UAE's needs, said Paul Kalafos, the vice president for international infrastructure systems at the company. "We know the UAE," Mr Kalafos said. "We don't take this competition lightly. We're confident they'll know the difference." @Email:cstanton@thenational.ae * additional reporting by Ivan Gale

Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

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Emirate: Dubai

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Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry 

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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.”

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The Baghdad Clock

Shahad Al Rawi, Oneworld

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NO OTHER LAND

Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal

Stars: Basel Adra, Yuval Abraham

Rating: 3.5/5

UAE currency: the story behind the money in your pockets
Tips for job-seekers
  • Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
  • Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.

David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East

The specs
Engine: 4.0-litre flat-six
Power: 510hp at 9,000rpm
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
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Captain Marvel

Director: Anna Boden, Ryan Fleck

Starring: Brie Larson, Samuel L Jackson, Jude Law,  Ben Mendelsohn

4/5 stars

Test

Director: S Sashikanth

Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan

Star rating: 2/5

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VEZEETA PROFILE

Date started: 2012

Founder: Amir Barsoum

Based: Dubai, UAE

Sector: HealthTech / MedTech

Size: 300 employees

Funding: $22.6 million (as of September 2018)

Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC

Kanguva
Director: Siva
Stars: Suriya, Bobby Deol, Disha Patani, Yogi Babu, Redin Kingsley
Rating: 2/5
 
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Engine: 2.0-litre 4cyl turbo

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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.

UAE squad

Rohan Mustafa (captain), Ashfaq Ahmed, Ghulam Shabber, Rameez Shahzad, Mohammed Boota, Mohammed Usman, Adnan Mufti, Shaiman Anwar, Ahmed Raza, Imran Haider, Qadeer Ahmed, Mohammed Naveed, Amir Hayat, Zahoor Khan