Oman has begun to clean up the damage left by Cyclone Shaheen, an operation that could cost the government millions of rials.
Recovery crews and utility workers have started work after the severe storm killed at least 11 people, destroyed homes, damaged infrastructure and forced more than 5,000 people into temporary accommodation.
Most of the damage is in Oman’s Batinah region, in the towns of Al Musannah, Suwaiq, Saham, Khabourah and Sohar, which were hit by 60-knot winds and 12-metre waves.
Towns were turned into “rivers and lakes” when the cyclone raged from Saturday to Monday.
Relief workers, a mix of municipality employees and volunteers, said damage to the Batinah region was extensive and its restoration could take months.
“The clean-up includes removing uprooted trees, fallen street lights, broken telecom masts, vehicles stuck in the wadis, dead animals, rubbles from broken roads and bridges,” Mansoor Al Yahyai, 23, a university graduate volunteering in Khabourah, told The National. “Only then we can start the repair and the replacement of damaged equipment and infrastructure.”
On Monday, Sultan Haitham, the Ruler of Oman, called for a ministerial committee to handle the clean-up and co-ordinate emergency efforts. He said the repair of infrastructure and reconnection of electricity and water should happen as soon as possible.
As municipality workers move in to survey the damage, civil engineers said the cost of rebuilding the country’s infrastructure could reach millions of rials.
“We are talking about damage of roads, bridges, power stations, electrical poles, water pipes, telecommunication facilities, state-owned buildings like ministries and schools and more,” said Khalid Al Harthi, 72, a retired former civil engineer at the Ministry of Defence.
“My estimate will be anything between 30 to 50 million rials [$78m to $130m]. There is widespread damage out there and I am not talking about private properties of ordinary Omanis who suffered the damages of their homes.”
The government did not release figures on the extent of the damage to private properties, but Mr Al Harthi said at least 1,000 houses could be affected.
“If over 5,000 [people] were evacuated, then the fair estimate is around 1,000 houses that have been damaged. I am not even talking about farms and private businesses like shops or even vehicles,” Mr Al Harthi said.
The government-owned Oman Charitable Organisation and Takaful Sohar have pleaded for private and public donations.
Most homeowners in Oman do not have house insurance and many fear that money raised from private funds will not be enough to cover the repairs.
My house is not insured and I am retired. My roof is leaking and the kitchen is flooded, and that is expensive to repair
Ibrahim Al Shaibany,
homeowner
Ibrahim Al Shaibany, 67, a homeowner in Sohar, said: “My house is not insured and I am retired. My roof is leaking and the kitchen is flooded, and that is expensive to repair. I don’t think there will be enough money raised from private donations to cover all the damages of homeowners like me.”
Other homeowners pleaded for government help.
One said: “I really hope the government would help people like us. It is our homes that have been damaged and we cannot afford to repair the damage. We just got back home from the shelter and the repairs are significant and could cost up to 3,000 rials ($7,800).”
A search-and-rescue operation is under way to find people who are still trapped in flooded areas, and hospitals remain on high alert, Omani state television reported.
All schools and universities have been closed for the rest of the week to allow water on the streets to drain. The Ministry of Labour has asked employers not to ask people to return to work if they live in flooded areas.
Committee set up
On Tuesday, Sultan Haitham called on his Cabinet to form a committee to assess the extent of the damage.
The committee will look at the private properties affected by the storms to support homeowners and private businesses. It will be led by the minister of finance, Oman TV reported.
“It was too early to reveal more information until the assessment have been completed,” a spokesman for the Cabinet of Ministers said.
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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
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A ancient classical dance from the southern Indian state of Tamil Nadu. Intricate footwork and expressions are used to denote spiritual stories and ideas.
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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.”
About Proto21
Date started: May 2018
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