$1.8bn Saudi Metro on line for Haj launch



Hundreds of thousands of pilgrims making the journey to Mecca will be able to use the holy city's first metro, which is set to launch in time for the Haj this year, one of the contractors on the US$1.8 billion (Dh6.61bn) project says. About 2.5 million Muslims descend on Mecca in Saudi Arabia for the Haj each year. The scale of the event and the challenge in moving the participants from site to site has in the past led to deaths caused by overcrowding.

It is hoped the Al Mashaaer Al Mugaddassah Metro, which runs for about 17km and links the sites of Mina, Arafat and Muzdalifah, will help solve the safety and transport problems. Alain Delecroix, a vice president at Thales, which is responsible for the metro's driverless train control and telecommunications systems as part of a ?103 million (Dh489.2m) contract, said it would run at 35 per cent capacity this year.

"The distance is the full line with the nine stations, but the 35 per cent capacity means the frequency of the trains," Mr Delecroix said. The train would initially run with a driver but eventually would be driverless, similar to the Dubai Metro system. The metro is expected to be operating at full capacity by the middle of next year. "We call it a metro but it's actually a crowd-management system, to be honest," said Mr Delecroix. "With buses it takes five or six hours to do the journey during Haj. It will be a huge improvement in the circulation."

At full capacity the metro is expected to carry 72,000 passengers each hour. China Railway Construction Corporation (CRCC) is the main developer of the project. Mr Delecroix said the system was similar to the one in Dubai. "Everything is raised," he said. "The ground is not flat in this part of Saudi Arabia. It's like Dubai Metro. The layout is similar." The number of pilgrims travelling to Mecca is expected to increase over the next few years, prompting plans for a number of major hotel projects around the holy site.

The total number of pilgrims for Haj and Umrah, which is the year-round pilgrimage, to the holy cities of Mecca and Medina is predicted to grow from about 7.8 million a year to 13.7 million by 2019, the consultancy Jones Lang LaSalle says. "Most of the Haj involves people moving about from one place to another and this creates a lot of risks," said Chiheb ben Mahmoud, the senior vice president at Jones Lang LaSalle Hotels MENA. "The sites are about 5 to 10km apart, so they are not walkable for many."

Mr ben Mahmoud said the metro system had the highest capacity in the world. About 12,000 people were working on the projects, Mr Delecroix said, adding he was not allowed access to the metro as a non-Muslim. "The other difficulty is that we don't have access to the site," he said. "I cannot go to the site to check how is the metro. I'm not Muslim so I've never been there." Mr Delecroix said there was no option but to have the project completed in time for the pilgrimage.

"It must be completed for the Haj," said Mr Delecroix. "? we cannot postpone the Haj." rbundhun@thenational.ae

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ICC Awards for 2021

MEN

Cricketer of the Year – Shaheen Afridi (Pakistan)

T20 Cricketer of the Year – Mohammad Rizwan (Pakistan)

ODI Cricketer of the Year – Babar Azam (Pakistan)

Test Cricketer of the Year – Joe Root (England)

WOMEN

Cricketer of the Year – Smriti Mandhana (India)

ODI Cricketer of the Year – Lizelle Lee (South Africa)

T20 Cricketer of the Year – Tammy Beaumont (England)

How much do leading UAE’s UK curriculum schools charge for Year 6?
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  2. Kings School Al Barsha (Dubai) – Dh71,905
  3. Brighton College Abu Dhabi - Dh68,560
  4. Jumeirah English Speaking School (Dubai) – Dh59,728
  5. Gems Wellington International School – Dubai Branch – Dh58,488
  6. The British School Al Khubairat (Abu Dhabi) - Dh54,170
  7. Dubai English Speaking School – Dh51,269

*Annual tuition fees covering the 2024/2025 academic year

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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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