Kimi Raikkonen speaks to the media ahead of the Singapore Grand Prix. Clive Mason / Getty Images
Kimi Raikkonen speaks to the media ahead of the Singapore Grand Prix. Clive Mason / Getty Images
Kimi Raikkonen speaks to the media ahead of the Singapore Grand Prix. Clive Mason / Getty Images
Kimi Raikkonen speaks to the media ahead of the Singapore Grand Prix. Clive Mason / Getty Images


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SINGAPORE // Kimi Raikkonen made the decision to rejoin Ferrari next season after Lotus failed to pay his salary, with the Finn saying he would still fulfil his duties over the final seven races of his contract because he “loved to race”.

Last week, Raikonnen, 33, agreed to replace Felipe Massa as Fernando Alonso's teammate at Ferrari, setting up a formidable partnership of former world champions at the Italian outfit where he won the title in 2007.

“I like to race,” the Finn said at the Singapore Grand Prix yesterday when asked why he was seeing out the last seven races of the season despite not being paid.

“That’s the only reason why I am here. It doesn’t matter which team it is but the reason I left Lotus was purely on the money side. It’s an unfortunate thing but I want to help the team as much as I can and as I just told you, I like to race.”

The Finn suggested that had Lotus matched his demands he may not have left but was happy with the decision now that it had been finalised.

“There were a lot of things they could have done to keep me and they know what it is,” he said. “It’s hard to say which way I would have gone had that happened but the deal is done now and I am very happy.”

Having two high-profile drivers in one team has often led to problems in the past and when news of Raikkonen’s move back to Ferrari filtered through the paddock, several of his rivals were quick to pour scorn on the prospect of a harmonious union.

Raikkonen, though, believes that age and experience will be a key factor in making his relationship with Alonso a good one.

“I can see plenty of reasons why it will work. We are old enough to know what we are doing and the team is working to make sure everything is fine,” he said.

“If there is a problem then we can talk it through. I may be wrong but I am pretty sure things will be OK.”

Raikkonen ended his first spell at Ferrari in 2009 with some reports it was an acrimonious departure, a view not shared by the Finn.

“I always had freedom [at Ferrari]. Don’t always believe what you read. We had a great time and I am sure I will have a great time again,” Raikkonen said.

“I know the team but obviously some new people have joined since I left but it is virtually still the same.

“So I don’t think it will be too difficult to go there.

“The cars will be different and that will be the biggest challenge to get them running reliably, and whoever makes the best car will make the best out of it.”

* Reuters

UAE currency: the story behind the money in your pockets
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Fixtures

Friday Leganes v Alaves, 10.15pm; Valencia v Las Palmas, 12.15am

Saturday Celta Vigo v Real Sociedad, 8.15pm; Girona v Atletico Madrid, 10.15pm; Sevilla v Espanyol, 12.15am

Sunday Athletic Bilbao v Getafe, 8.15am; Barcelona v Real Betis, 10.15pm; Deportivo v Real Madrid, 12.15am

Monday Levante v Villarreal, 10.15pm; Malaga v Eibar, midnight

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

While you're here

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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  • An elevated football field that doubles as a helipad
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Director: Kangana Ranaut

Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry 

Rating: 2/5

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