Stu Bannatyne, the Camper team watch captain, is left pondering the best options for Emirates Team New Zealand.
Stu Bannatyne, the Camper team watch captain, is left pondering the best options for Emirates Team New Zealand.
Stu Bannatyne, the Camper team watch captain, is left pondering the best options for Emirates Team New Zealand.
Stu Bannatyne, the Camper team watch captain, is left pondering the best options for Emirates Team New Zealand.

Volvo Ocean Race teams caught up in varying speed winds


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Strong winds and heavy rain created a "second start line" for the Volvo Ocean Race yesterday as the six yachts continued to shuffle positions.

Ken Read, the skipper of Puma Ocean Racing, described the conditions as some of the most frustrating and mentally exhausting of his career.

The crews have reported the wind dropping to less than 10 knots and just minutes later gusting to more than 25 knots, making for countless sail changes and exhausted sailors.

Read said despite more than 100 nautical miles between the leader Telefonica in the north and Groupama in the south, the unpredictable conditions meant there was very little separating the fleet in the voyage to Abu Dhabi.

"It is anyone's race, more so than any race I've been in in my life,'' he said. "This is crazy. It's 100 per cent a second start line.

"It's been hard and very taxing mentally trying to deal with it all. Each time we sit here and talk about it we make an argument that we would rather be further north or further south."

Abu Dhabi Ocean Racing were in second place by just under 20 nautical miles, followed by Team Sanya, Puma, Camper/Emirates Team New Zealand and Groupama.

Telefonica appeared to benefit from navigator Andrew Cape's decision to take the most northern course as the six teams were all trying to chase down the same high-speed front.

On Azzam, the Abu Dhabi boat, Ian Walker, the skipper, resorted to sending the bowman, Justin Slattery, up the mast to scout for wind. The team soon sighted a cloud sporting a decent breeze, leading the helmsman/trimmer Simon Fisher to shout: "Right fellas, that's our ticket off this pond. Let's get 'er done!"

Azzam sustained decent speeds, but Nick Dana, the media crew member, said the team expected the more northerly positioned Telefonica would make further gains.

"We are starting to believe that Telefonica's slight course change to the north might pay off in a few of the latest weather models," he said. "No doubt their navigator will be chancing their possible break from the fleet for big gains."

Walker said the weather that slowed the fleet was the equivalent of a safety car in Formula One racing.

"Sanya were over 60 miles behind us yesterday and now we can see them right up behind us," he said. "It's always nice to have a boat in sight but its annoying to have lost such a big margin so quickly.

"The only real question for navigators and skippers is where to position yourself on the north-south axis in the line up behind the safety car."

However, Groupama, the team on the most southerly course, were last night more than 100 nautical miles behind the leader.

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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Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE