The Internet of Things is one of the gadget industry’s brightest hopes in a world that is saturated with smartphones. Sensors are cheap and digital firms, such as Amazon and Google, are pushing their voice-command technology. The resulting hype, however, spawns inventions that should only exist in the corny worlds of science fiction.
At this point, the IoT market is not well-quantified. Intel claims there were 15 billion connected IoT devices in the world in 2015 – a number the chipmaker predicts will increase to 200 billion by 2020.
Gartner, the tech consultancy, counted fewer than 5 billion devices in 2015 and predicted fewer than 21 billion by 2020. There is a good reason for the gap: no one can predict which objects consumers and businesses will want to connect to the internet. So businesses are trying nearly everything, and showing it off this week at The Consumer Electronics Show in Nevada.
That means 10 more apps for objects you never imagined could – or indeed should – be connected to the internet.
These things are supposed to improve how you brush your hair and shop for groceries. But aren’t these solemn chores what helps keep us human? Besides, will your cat’s welcome be as warm after it realises a robot – not you – feeds her three times a day? Will you miss your child’s call in the middle of the night when she opts for a plastic gadget to read her a fairy tale?
This is how capitalism works, of course. People will offer things for sale in the hope other people will buy them, and if there’s no market, these objects will just disappear.
On the other hand, as major companies adopt some of these offerings, they will soon become mainstream just because they will be pushed on consumers with the help of billion-dollar marketing budgets. Then, expect botnets of smart fridges and hacked smart showers that scald you just for fun.
One of the devices presented at CES this year is a router that monitors the security of every connected device in the home, which seems wise after a hack brought the internet to a standstill for millions in October.
It is only a matter of time before these gadgets must also defend against waves of “targeted” ads based on your ketchup consumption and the little one’s zeal for Maurice Sendak.
That will be a dystopian world. I, for one, will steer clear of all these “smart” objects while “dumb” ones are still sold. An internet-connected device that solves a real problem is the rarest of rarities at this point.
But I won’t deny that it’s also heartwarming that people are designing some of these things, and adventurous consumers are trying them out. That’s mostly because of the voice features, based in many cases on Amazon’s Alexa.
Amazon has put the voice assistant in the cloud, allowing manufacturers to keep devices simple and cheap – all they need to do is record voice commands, send them off, and receive responses.
The more Alexa is used in the weirdest contexts, the better it recognises complex or badly formulated commands and the more it learns of the endless diversity of human life. It’s good for the technology – which has many legitimate uses, from making driving safer to increasing the accessibility of services to disabled people – that some of us are willing to have regular conversations about with their fridge.
* Bloomberg
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What is a Ponzi scheme?
A fraudulent investment operation where the scammer provides fake reports and generates returns for old investors through money paid by new investors, rather than through ligitimate business activities.
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
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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BULKWHIZ PROFILE
Date started: February 2017
Founders: Amira Rashad (CEO), Yusuf Saber (CTO), Mahmoud Sayedahmed (adviser), Reda Bouraoui (adviser)
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Sector: E-commerce
Size: 50 employees
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Investors: Beco Capital, Enabling Future and Wain in the UAE; China's MSA Capital; 500 Startups; Faith Capital and Savour Ventures in Kuwait
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The biog
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