A weather warning was issued on Tuesday morning as rain fell across Abu Dhabi.
An amber alert – for expected hazardous weather – was shared by the National Centre of Meteorology in the capital, with yellow alerts in other parts of the country.
The safety notice will remain in effect until 7pm on Wednesday.
Read more: Why is hail falling in the UAE in the middle of summer?
The national meteorology centre (NCM) said rain fell in the Abu Al Abyad Island, Al Mirfa and Tareef areas early on Tuesday morning.
Abu Dhabi Police temporarily reduced the speed limit to 120kph on a section of the Abu Dhabi-Al Ain Road at about 6.30am as a safety precaution.
The force said normal speed limits were reinstated shortly before 8am.
Further downpours were reported in parts of Al Ain throughout the morning and into the afternoon.
The NCM called on people in the east of the Emirates to be vigilant due to the prospect of heavy rain, and to avoid flooded areas.
The weather centre forecast wet weather in the east and south in particular until Thursday, accompanied by a slight drop in temperatures.
It said the unstable weather was a result of an extension of the “intertropical convergence zone”, a belt of low pressure around the Equator.
Summer rain is not unusual in the UAE, despite the high temperatures, due to low pressure systems drifting across from India, which is in monsoon season.
There were downpours and hail on the Dubai-Al Ain Road and the Masakin area of Al Ain shortly before 4pm on Monday.
The wet weather did offer some respite from the intense summer heat, with video footage shared online showing residents gleefully holding hailstones and young children playing in puddles.
Safety call for motorists
However, authorities were eager to stress the importance of staying safe.
The NCM bureau cautioned motorists against driving in rain and poor visibility “unless necessary”.
It said anyone who does take to the road should drive with care and use their headlights on low beam during reduced visibility.
Drivers were urged to monitor latest weather forecasts from the NCM before getting behind the wheel.
Abu Dhabi Police asked drivers to exercise caution and to observe the variable speed limits displayed on electronic road signs.
Deadly floods in Oman
The unsettled weather in the UAE comes as Oman grapples with fierce flash floods caused by heavy rain that is expected to persist until Wednesday evening.
A child died after being swept away by water in a flooded valley, police reported on Tuesday. He was a passenger in a car which was engulfed in water.
Royal Oman Police said four other people in the vehicle were rescued and transported to hospital for treatment.
Temperatures to rise as skies clear
The current spell of bad weather is set to be followed by bright skies and an increase in temperatures.
The mercury is expected to reach 49°C on both Friday and Saturday in Al Quaa and Gasyoura, two remote desert areas of Abu Dhabi, according to the NCM's online weather map.
Temperatures are expected to peak at 45°C in Dubai on the same days.
Summer rain in Abu Dhabi – in pictures
The Omani Civil Aviation Authority advised the public to “exercise maximum caution” due to predicted heavy rainfall across the country.
The UAE Embassy in Muscat called on Emiratis in Oman to take care during the stormy weather and follow safety advice issued by the country's authorities.
Saudi Arabia's Jazan region has been lashed by torrential rain in recent days, leading to three deaths and widespread disruption and damage to property.
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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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