Traffic accidents in the UAE increased by 8 per cent last year, with 4,748 recorded across the country, compared to 4,391 in 2023.
The number of deaths recorded was 384, higher than in 2023 and 2022, with just under a third of victims in their 20s.
The annual figures were released as the country witnesses a population surge, with more vehicles on the road than ever before.
According to Thomas Edelmann, founder of Road Safety UAE, the increasing number of accidents is linked to population growth, more driving licence holders and heavier traffic congestion, especially in Dubai.
“Fuller roads mean more anxious motorists, as stress levels rise in dense traffic and on congested roads,” Mr Edelmann said.
“We are also seeing a general decline in a caring attitude and politeness towards other road users,” said Mr Edelmann referencing a study released last month that showed a rise in congestion levels in Dubai, while Abu Dhabi saw some improvement.
“All motorists must remain fully focused at all times,” added Mr Edelmann. “One in five drivers is not paying full attention and, in some demographics, it’s even worse. This is a major safety concern.”
He said a study by Road Safety UAE and Al Wathba National Insurance last year found that 55 per cent of motorists admitted to being distracted by mobile phone use.
Mr Edelmann drew attention to poor road etiquette and added that many sudden deviations in direction happen without the use of indicators.
“Earlier studies by Road Safety UAE showed that indicators are only used in about 50 per cent of manoeuvres, and even less among younger drivers,” he said. “It is the law to always use indicators to signal intent. Without this communication, the safety of the driver and others is compromised.”
He said there is a need for focused education on proper signalling habits.
Despite safety campaigns and enforcement measures, 384 people died in crashes last year – an increase from 352 deaths in 2023 and 343 in 2022. The fatalities included 133 people aged between 19 and 29, and 149 aged between 30 and 44.
“It's deeply concerning to see a second consecutive year of rising fatality numbers,” he said. “The young driver segment remains particularly vulnerable and more must be done to drive education by parents, schools and training centres to address this.”
“Given that there are more men on the roads, based on a recent study by us, it’s no surprise that they are statistically more involved in accidents.”
He said this aligns with global trends which indicate that male drivers tend to be at higher risk.
Most accidents occurred in clear weather, when roads were classified as “clear” or “open”, reinforcing the conclusion that human error remains the dominant factor.
This story has been updated to correct inaccuracies in a previous version, which stated that accidents had risen by 46% in 2024.
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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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