AL GHARBIA, ABU DHABI // Nani Roma made clear his intent to retain his drivers’ title in the Abu Dhabi Desert Challenge when the Spaniard and his French co-driver Michel Perin powered into a lead of 11 minutes, 29 seconds on Sunday.
Meanwhile, the Dubai-based English rider Sam Sunderland took the lead in the bikes category after the 290-kilometre Stage 1 race through the giant dunes of the Al Gharbia region, on the northern edge of the Empty Quarter.
The day's racing was marred by the death of the Dubai-based British rider Cameron Waugh, following an accident during the stage.
Roma also is the reigning Dakar Rally champion, and the performance he and his partner achieved in their Mini All 4 Racing car set a marker for those already well behind.
“There were a lot of dunes but I had no problems and navigation is going well,” Roma said. “I’m testing some new systems in the car and it’s going very well, so far.”
Marek Dabrowski and Jacek Czachor of Poland are second, in a Toyota Hilux, and the Dutchman Eric van Loon is third in a Mini.
The Emirati Yahya Al Helei completed the stage in eighth place, in his new Nissan pick-up.
“It was very difficult, with some big jumps,” said Al Helei, who is partnered by compatriot Khalid Al Kendi. “Also, it is a new car and I need more practice. I had problems with the shock absorbers. Also, no reverse gear, but being a Nissan, it keeps going.”
Sunderland, who finished third in the bikes last year after a technical infringement knocked him out of first place, was in control in his KTM debut, winning the stage by 34 seconds from his new teammate, Marc Coma.
“Myself and Marc travelled together and, luckily, we had tracks from earlier riders. Then, towards the end, I was able to go ahead.
“Overall, it was a great stage and I’m very happy.”
The Emirati rider Mohammed Al Balooshi finished 10th in the stage, and said: “Today was tough, as I am getting used to the bike and trying to pick up on my fitness, so I took it easy in order to finish the stage.”
Mohammed Abu Issa of Qatar, the defending champion in the quad class, was first home, ahead of Poland’s Rafal Sonik, the world champion.
“The stage had more dunes than I expected, which was actually quite good for my bike as I had made the setting more suited to that terrain’” Abu Issa said. “I did struggle a little with the bike in the first half, after the changes I’d made after Dakar, but the second half was much better once I got used to the bike again.”
He added, however, that he had lost his time card and expects a five-minute penalty.
The rally bivouac is near the Qasr Al Sarab Desert Resort, in the oasis town of Liwa.
Today’s Stage 2 will cover 269km and begin at 8am at the Mizaira Adnoc petrol station at Power Station, on the road to Madinat Zayed. The leaders are expected to finish at 12.15pm.
Five stages will be held in the desert, with the final stage concluding at Yas Island, in Abu Dhabi, on Thursday.
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Abu Dhabi’s Ostberg secures third in Portugal
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Mads Ostberg picked up his second podium of the season for Team Citroen Abu Dhabi at Rally Portugal with a third-place finish.
The Norwegian was 1 minute, 12.4 seconds behind Volkswagen’s Sebastien Ogier, who won the event for a fourth time, with Hyundai’s Mikko Hirvonen second. Ostberg’s Emirati teammate, Sheikh Khalid Al Qassimi, finished 13th.
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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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Sand storm
- Particle size: Larger, heavier sand grains
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- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
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