Etihad Airways has announced 10 new direct routes from Abu Dhabi to destinations in Asia, Africa and the United States – including Hong Kong and Atlanta.
As part of its expansion plans for next year, which chief executive Antonoaldo Neves predicts will be the company's biggest ever, the UAE's national airline is now selling tickets to and from seven destinations in Asia, two in Africa and Atlanta on the US Eastern Seaboard.
Atlanta will be the first of the 10 new routes to take off, with flights scheduled to begin on July 2, 2025. When that happens, Etihad will be the only airline offering direct flights between the UAE and the capital of Georgia.
Flights to Taipei in northern Taiwan will start in September, followed by new routes to Medan, Phnom Penh and Krabi in October and Tunis, Chiang Mai, Hong Kong, Hanoi and Algiers in November. Tickets for each destination are already on sale.
Abu Dhabi tourism is 'going to explode'
Mr Neves said Etihad is on track for its biggest year, thanks in part to the expansion of Zayed International Airport. “In 2025, we're going to have 21 million passengers,” he said. “And departures will go from 56,000 in 2022 to more than 100,000, something that would never have been possible at the old terminal.”
In addition to expanding its network, Etihad has also outlined plans to fly more frequency to European destinations in the first half of next year and says it will prioritise scheduling to make travel times more convenient.
“Now tourists who come to Abu Dhabi from Italy, France, Germany, Spain, Russia or Switzerland – six destinations that are huge countries in Europe – can come to the UAE on a very convenient flight schedule.” added Mr Neves. “They arrive around 9 or 11am, go to the hotel. And then when they come back they can leave the hotel at 7am or 9am. It's perfect timing for tourists, so you're going to see the number of tourists explode next year.”
Etihad hopes its focus on Asia will increase the number of tourists visiting Abu Dhabi. “In the first part of this year, we had around 40 per cent capacity growth into Europe,” said Arik De, chief revenue and commercial officer. “Going into next year, we're going to add around 36 per cent capacity. That growth enables us to unlock this eastern network. Then it's not only amazing for the UAE, because a lot of these places into Asia are not currently served, but we are going to be the only airline that can take someone all the way from Nice to Hanoi, for example.”
Etihad had previously announced new direct services to Al Ameain, Warsaw and Prague, with flights set to begin in June and July. The airline will also start flying directly from Abu Dhabi to Nairobi, Kenya from December 15.
Passengers will pay more
By the end of 2025, Etihad plans to have more than 90 destinations in 50 countries across the world. This will be made possible with the arrival of new jets. Etihad expects to be operating more than 110 aircraft, up from 71 in 2022, including brand new A321LRs, Boeing 787s and Airbus A350s. The airline also plans to reinstate two of its A380 super jumbos early next year.
But passengers hoping to see a respite in airfares next year will probably be disappointed, according to Mr Neves, who points to aircraft supply chain issues faced by the aviation industry.
“In the end, airfares are about supply and demand and if planes are not delivered, demand is going to grow and fares are going to go up,” he explained. “I hope they deliver planes, because we're in the business of selling tickets and we want to sell more and cheaper tickets, but the reality is our load factors now are extraordinary. And Abu Dhabi is doing extraordinary well, so demand is really, really strong. So for fares to be controlled there is an urgent need for Boeing and Airbus to deliver planes.”
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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.”
MATCH INFO
Rugby World Cup (all times UAE)
Final: England v South Africa, Saturday, 1pm
A little about CVRL
Founded in 1985 by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, the Central Veterinary Research Laboratory (CVRL) is a government diagnostic centre that provides testing and research facilities to the UAE and neighbouring countries.
One of its main goals is to provide permanent treatment solutions for veterinary related diseases.
The taxidermy centre was established 12 years ago and is headed by Dr Ulrich Wernery.
more from Janine di Giovanni
Ibrahim's play list
Completed an electrical diploma at the Adnoc Technical Institute
Works as a public relations officer with Adnoc
Apart from the piano, he plays the accordion, oud and guitar
His favourite composer is Johann Sebastian Bach
Also enjoys listening to Mozart
Likes all genres of music including Arabic music and jazz
Enjoys rock groups Scorpions and Metallica
Other musicians he likes are Syrian-American pianist Malek Jandali and Lebanese oud player Rabih Abou Khalil
The Vile
Starring: Bdoor Mohammad, Jasem Alkharraz, Iman Tarik, Sarah Taibah
Director: Majid Al Ansari
Rating: 4/5
Vaccine Progress in the Middle East
Two products to make at home
Toilet cleaner
1 cup baking soda
1 cup castile soap
10-20 drops of lemon essential oil (or another oil of your choice)
Method:
1. Mix the baking soda and castile soap until you get a nice consistency.
2. Add the essential oil to the mix.
Air Freshener
100ml water
5 drops of the essential oil of your choice (note: lavender is a nice one for this)
Method:
1. Add water and oil to spray bottle to store.
2. Shake well before use.
Dolittle
Director: Stephen Gaghan
Stars: Robert Downey Jr, Michael Sheen
One-and-a-half out of five stars
MATCH INFO
Inter Milan 2 (Vecino 65', Barella 83')
Verona 1 (Verre 19' pen)
The specs
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Price, base / as tested Dh174,500
'The Lost Daughter'
Director: Maggie Gyllenhaal
Starring: Olivia Colman, Jessie Buckley, Dakota Johnson
Rating: 4/5
