You can have the chance to get behind the wheel of the Yas Supersport SST.
You can have the chance to get behind the wheel of the Yas Supersport SST.
You can have the chance to get behind the wheel of the Yas Supersport SST.
You can have the chance to get behind the wheel of the Yas Supersport SST.

The economics of going really fast


  • English
  • Arabic

What do you consider good value? Good value doesn't necessarily mean something is cheap. I consider this factor when testing cars, no matter their price; what do you get for your money? This week, I had the opportunity to try out Yas Marina's racing school, which is now open to the public. Going from 8am to midnight, it offers the public a chance to get behind the wheel of no less than three different types of cars: a V8-powered Aston Martin GT4, an open-cockpit Yas Supersport SST, pictured below, and a single-seat Formula Yas 3000. An hour and a half with each of these costs Dh950.

During a brief presentation before we got into the cars, it was suggested by a member of the media that this was very expensive. Jonathan Tait, the head of the race school, replied that the cost was in line with other racing schools in the area and that the management was satisfied with its decision. And to be honest, so am I. Yes, Dh950 is no small change, especially in these trying times. But, if you are a motorsport fan, consider what you get for your hard-earned cash.

Dh950 gets you in the seat of a real and very expensive race car, purpose-built for the track. That alone is something not many people get the chance to do. You also get personal instruction from a qualified and experienced race car driver. Yas has assembled a team that includes regular drivers in the UAE Touring Car championship, guys who race almost every weekend, and they know what they're doing.

That money gets you a team of qualified mechanics and covers tyres, fuel and oil. And, it includes a very stylish fire-proof suit and helmet that make you feel like a race car driver, regardless of your abilities. And let's not forget the track. You will have the opportunity to drive the same circuit as Fernando Alonso, Jenson Button, Lewis Hamilton et al, even under the lights in the evening, just like the Abu Dhabi Grand Prix. It's one of the best racing facilities in the world, and you get a chance to drive it in fury.

I got a drive in the Aston, with Saeed al Mehairi as my instructor. Al Mehairi is a regular in the Touring Car championship here, and guided me as we blasted around the track with the V8 roaring a glorious note. After the run - as I couldn't hear a thing he said in the car - we went over everything again. And here's where I found the only problem: it's addictive. I wanted to turn right around, get back on track and work on it again. But that will have to wait until next time. At Dh950, it's not cheap. But when you finally get out of the car with that smile on your face, you'll find it's a fantastic value.

Got a bit more cash to blow? Yas also offers two laps in its two-seat F1 car, and after a stint with none other than the former F1 driver Mika Salo, who was just visiting, I would heartily recommend trying it. At Dh7,500 a pop, it's not for everyone. But to finally experience what these drivers go through is stunning; the forces inside the cockpit are incredible. I'll never watch an F1 race the same way again. motoring@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.”

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Dubai Rugby Sevens
Winners: Dubai Hurricanes
Runners up: Bahrain

West Asia Premiership
Winners: Bahrain
Runners up: UAE Premiership

UAE Premiership
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Runners up: Dubai Hurricanes

UAE Division One
Winners: Abu Dhabi Saracens
Runners up: Dubai Hurricanes II

UAE Division Two
Winners: Barrelhouse
Runners up: RAK Rugby

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Sector: Entertainment/Streaming Video On Demand

Number of employees: 125

Investors/Investment amount: $125 million. Major investors include Starz/Lionsgate, State Street, SEQ and Delta Partners

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