The Rolls-Royce Wraith. Chris Ratcliffe/Bloomberg
The Rolls-Royce Wraith. Chris Ratcliffe/Bloomberg
The Rolls-Royce Wraith. Chris Ratcliffe/Bloomberg
The Rolls-Royce Wraith. Chris Ratcliffe/Bloomberg

Middle East gears up for the fastest, most powerful Rolls-Royce ever


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The new Dh1.2 million Rolls-Royce Wraith hits the Middle East next month as Abu Dhabi bids to retain top billing for worldwide bespoke sales.

Abu Dhabi Motors, which was Rolls-Royce’s Best Bespoke Dealer Worldwide for 2012, registered a 39 per cent increase in sales of cars in the first quarter of this year.

The emirate is now the single biggest market for its bespoke designs – the process that allows customers to do anything they wish to a standard Rolls-Royce model.

That was driven by the Ghost and Phantom models’ designs – and the Wraith has the chance to boost sales even further.

Torsten Müller-Ötvös, the chief executive of Rolls-Royce, acknowledged the particular buying habits in the Middle East and recognises that, in the past, they did not do enough to appeal to the region.

“Worldwide it is not really enough for Rolls-Royce to rely on the heritage and tradition of the brand – but in the Middle East that is certainly the case more than anywhere else,” he said.

“Across the region there is an emerging band of wealthy new individuals and they want to put their own mark on what they purchase, especially when buying a luxury item.

“At Rolls-Royce we have adapted to that and the bespoke service has made a huge difference, which can be seen in Abu Dhabi becoming the single biggest bespoke market for us. The Wraith can take us forward even more and it is going to be very interesting to see how we progress from October onwards.”

The Wraith starts at Dh1.2m and is the fastest and most powerful Rolls-Royce ever built.

Launched in March at the Geneva Motor Show, the Wraith can accelerate from 0-100kph in just 4.6 seconds.

“We are looking to young drivers in the Middle East to really love the power of this car as it has not only the speed but also the ability to grab attention,” said Philip Harnett, the Wraith’s project manager.

AGMC, the Rolls-Royce dealer in Dubai, Sharjah and the Northern Emirates, has taken delivery of the first Wraith in the region, it said last week.

According to figures from AGMC, in the ultra-luxury car segment of vehicles that sell for more than Dh1m, Rolls-Royce has about 70 per cent market share in the UAE.

Customers will start receiving the Wraith next month.

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Lazio 3 (Alberto 16', Lulic 73', Cataldi 90 4')

Red card: Rodrigo Bentancur (Juventus)

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 PROFILE

Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed 

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