A new year and yet another sky-busting tower in Dubai.
This time it's Uptown Tower, which is sandwiched between the southern end of Jumeirah Lakes Towers and the Jumeirah Park community.
The skyscraper reached 329 metres last week when the concrete was poured for the roof of the 79th level. It will eventually reach 340m when a steel crown is placed on top.
The Uptown Dubai District is set to offer 10 million square feet of residential and business space, with 200 shops and restaurants.
But where does Uptown Tower rank in terms of the world's tallest buildings?
Of course, it is some way below the 828m Burj Khalifa, and doesn't even make Dubai's top 10, but, as anyone who has stood near it will affirm, it's still huge.
And, to answer the question, it will be the world's 80th tallest building, according to data from Emporis, unless one of the 13 soon-to-be-finished buildings is higher.
World's tallest towers
Where does Uptown Tower rank among the UAE's tallest buildings?
Quite highly, but it doesn't make the top 10. Dubai has almost 20 per cent of the world’s tallest completed buildings, according to The Skyscraper Centre of the Council on Tall Buildings and Urban Habitat.
But not all of the UAE's high rises are in Dubai, with Abu Dhabi having some of the tallest, as well.
Uptown Tower is the 14th tallest in the UAE, just behind Adnoc Tower on Abu Dhabi's Corniche (342m); The Torch in Dubai Marina (352m), Emirates Tower 1 (354m) and the JW Marriott Marquis (355m).
You can see the tallest in the Middle East in the slideshow below:
What else is coming up on the horizon?
There are a few big projects in the pipeline in Dubai.
Construction of Ciel Tower in Dubai Marina is under way and will eventually reach 360m, according to developer The First Group.
It will have 1,209 luxury hotel suites and serviced residences spread over 82 levels, plus a glass observation deck with 360-degree views.
One Zabeel, meanwhile, is a pair of towers located next to Dubai's Trade Centre, connected by a 7,700-tonne bridge.
Tower A measures 304 metres and topped out in April 2021, while the 241m Tower B topped out earlier.
In Saudi Arabia, work on Jeddah Tower – slated to be the world's tallest once complete – is ongoing, although progress has been slow since construction started in 2011.
Meanwhile, in Downtown Kuala Lumpur, what will be the world's second-tallest skyscraper reached its final height in December.
Merdeka 118 is 678.9m, taller than the current second-tallest building, Shanghai Tower.
Designed by Australian firm Fender Katsalidis, Merdeka, 118 is scheduled to be completed later this year.
In Egypt, Africa’s tallest skyscraper has risen in the desert. The concrete, 385-metre Iconic Tower was completed in June last year and is set to open its doors in the first quarter of this year.
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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