Ten new electric buses have hit the roads in Sharjah. Photo: Sharjah RTA
Ten new electric buses have hit the roads in Sharjah. Photo: Sharjah RTA
Ten new electric buses have hit the roads in Sharjah. Photo: Sharjah RTA
Ten new electric buses have hit the roads in Sharjah. Photo: Sharjah RTA

Sharjah introduces ten new electric buses on intercity routes


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Sharjah is gearing up for a greener future after introducing ten new electric buses to serve three major intercity routes.

The emirate's Roads and Transport Authority said on Sunday the fleet was now in operation on journeys to and from Dubai, Ajman and the coastal city of Al Hamriyah in Sharjah.

The public transport initiative is the first phase of a shift towards using buses which meet sustainability measures in line with the UAE's drive to reach net zero emissions by 2050, state news agency Wam reported.

Sharjah's authority said the three bus services were selected based on the results of comprehensive studies based on several criteria, including which routes were most frequently used and carried the most passengers.

Youssef Khamis Al Othmani, chairman of Sharjah's authority, said the ten buses were acquired after the success of trials involving two of the vehicles to test their suitably for the UAE climate. He said the number of electric buses on Sharjah's roads will expand as part of a renewable energy strategy aimed at cutting carbon footprint.

The new energy-efficient vehicles have been supplied by Chinese bus maker, King Long. They can hold 41 passengers, are air-conditioned and operate with a battery cooling system.

The road to net zero

The UAE views public transport as crucial to its ambitions to take cars off the road, reduce emissions and protect the environment.

In July, Dubai's Roads and Transport Authority set out plans to introduce 636 more buses under a Dh1.1 billion action plan. The authority purchased 450 city service buses, featuring low floors for easy access for disabled people and special seating for children, 146 articulated and double-decker buses for high-density areas and 40 electric buses.

They are to be delivered throughout the remainder of this year and into 2025.

Dubai aims to convert all buses, taxis, and limousines to zero-emission vehicles, seeking 100 per cent conversion of public transport buses to electric and hydrogen-power by 2050.

Work is also being carried out to make taxi fleets more sustainable. In March last year, Sharjah transport authorities added 10 Tesla Model 3 cars to its roster of taxis. Four months later, Sharjah Taxi started testing Chinese Skywell electric vehicles for its limousine service. Tesla vehicles were used in Abu Dhabi last year under a partnership between the capital's Integrated Transport Centre and public taxi franchisee, Arabia Taxi Transportation.

The gradual shift away from petrol vehicles is crucial to the UAE's efforts to hit net-zero emission goals by 2050.

Last year, Dubai's authority announced that all taxis would be eco-friendly by 2027, meaning all public transport cars will be hybrid, electric or hydrogen-powered by the end of the five-year plan.

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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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Updated: September 22, 2024, 11:39 AM