A new eco-friendly and silent jet ski is set to go on sale across the UAE as a local manufacturer looks to take advantage of the country's booming tourism market.
JetPad, which is based in the Al Quoz industrial district in Dubai, is launching an electrically powered watercraft that is a cross between a jet ski and a go-kart and reaches speeds of up to 45kph.
The manufacturer hopes initially to sell to hotels as the tourism industry picks up this year.
"The UAE's hoteliers are craving this kind of addition to their watersports offering and we believe that JetPad is the guilt-free answer that can conform to all existing or pending environmental and safety legislation," said Alexander Schellnast, the founder and chairman of JetPad.
The number of foreign tourists visiting the UAE's shores this year is expected to reach almost 9 million, a 9 per cent rise on last year, according to the latest industry report by Business Monitor International, an information and research provider.
Guest numbers in Dubai hotels increased 10 per cent in the first half of last year to 4.6 million. Abu Dhabi enjoyed a record full year, with more than 2.1 million guests checking into hotels in the capital.
JetPad plans to sell 200 watercraft in the first year of operation in the UAE and wider Gulf, before rolling out distribution to other parts of the world.
The JetPad retails at about Dh70,000 (US$19,057) depending on the specifications, and is at the top end of the traditional jet-ski price.
If hotels are unwilling to buy the craft, JetPad will initially offer leasing options. The craft is also available to individuals, who can contact the company on its website.
"We look to attract families, this is what we are looking for, not to be in competition with jet skis. We cannot compete on speed or price," said Mr Schellnast.
The JetPad is three times lighter than a typical jet ski and is powered by a battery that can last up to an hour and can be fully charged within 30 minutes.
"Traditional personal watercraft, despite a poor safety record, remain a hugely popular adrenaline hit among UAE residents and tourists, so we saw a fantastic opportunity to provide an environmentally benign, family-friendly and safer alternative," said Mr Schellnast.
Using a GPS system, the JetPad can be programmed to run only in a certain area of the sea to keep away from swimmers and others using the water.
If the JetPad strays outside the designated area, it automatically slows down and can then be steered into right part of the water.
Thanks to its design, JetPad claims the craft can never be flipped over. It comes in two models, one on which the rider can sit down and another on which the rider is kneeling or lying.
rjones@thenational.ae
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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.”
