Independence Day 1962. As millions of Americans enjoy the July 4 holiday, on the other side of the world another celebration is taking place.
This is independence of a different kind. The first shipment of oil is leaving Abu Dhabi, and with it the promise of better times ahead.
As with Americans, for Abu Dhabi the day also represents freedom. In this case it is freedom from poverty, from disease, and an end to the lack of basic necessities including health care, education, clean water, sanitation, permanent housing, even roads.
All these things will come very quickly with the export and sale of oil. Even that first modest shipment was worth nearly $500,000, or at today’s prices more than $3 million.
It is only four years since oil was discovered in March 1958, at the Umm Shaif off-shore field near Das Island.
Now the island is the heart Abu Dhabi’s oil production. At mid-afternoon on July 4, two tugs secure the bow and stern lines of the British Signal, delicately manoeuvring the 35,000-tonne ship away from the loading platform until the BP tanker can proceed into the Arabian Gulf under her own power.
Overhead, a company photographer leans out of a clattering helicopter, capturing the moment for the history books.
The British Signal carries 254,544 barrels of oil, then worth $458,197 on the international markets. A barrel of oil at the time was worth $1.80. In 1962, Abu Dhabi oil production, soon to be joined by the huge Murban Bab onshore field, reached 10.5 million barrels a year.
Today that total can be produced in a single day, while oil is currently valued at $117 a barrel. It is a bounty that has brought life-changing benefits to the people of the UAE. From one of the poorer countries in the world in 1960, it is now one of the wealthiest.
Memories of that historic first voyage flooded back for John Small, then a 20-year-old assistant cook on the ship.
Like everyone on board, Small knew it was a special day. For starters, there were the trays of canapes Small had to prepare for the official party, as the ship hosted members of the Royal Family and visiting oil company bigwigs, flown to the port at Das Island.
For the 50th anniversary, Small, now retired from sea and living in southern England, recalled the ship's arrival to The National.
"We knew it was big day. As we approached there was a fanfare with tugs pumping fountains of water and the ship was decked with flags."
He remembers that the weather was poor: "There was a sandstorm and we couldn't really see the island."
Small had sailed up the Arabian Gulf before, loading oil from Kuwait. This time he joined the British Signal when she was laid up at Tilbury dry dock in London. He still has his papers, stamped June 2, 1962.
From Britain, the tanker sailed east through the Mediterranean, passing through the Suez Canal before turning north-east into the Arabian Sea. She arrived at Das and connected to the flow lines once her ballast had been discharged.
Normally a ship of this size would load and depart in 16 hours, but because this was a VIP occasion, the sailing was delayed.
After the formalities — which included a crate of ale for each crewman — the tanker set sail at 2.45pm, records show.
BP logs say the tanker was bound for its refinery in Aden. In its review of the year for 1962, the UK Institute of Petroleum, now known as the Energy Institute, also lists Aden as the destination.
John Small remembers otherwise. Ships of the size of the British Signal did not transport oil to Aden, he insists. Besides, he has no recollection of arriving at the port.
Normally, Small says, these tankers would have taken a full cargo of oil back to another BP refinery on the Isle of Grain, at the entrance to the River Medway on the south coast of England.
But after a four-week journey that took almost exactly the same time as the outward trip, the British Signal instead docked at Glasgow in Scotland. On August 4, 1962, his discharge papers were stamped and signed in Scotland, with his conduct marked "very good".
The voyage of the British Signal was the first of many. By 1970, annual production had exceeded 250 million barrels, while the largest oil supertankers today can ship around 2 million barrels in a single trip.
Oil still sustains the economy, but increasingly the search is for new, renewable sources of energy and diversified industries for a stronger, sustainable economy.
“In 50 years, when we might have the last barrel of oil, the question is: when it is shipped abroad, will we be sad?” the President, Sheikh Mohamed asked during a speech in 2015, adding the reply: “If we are investing today in the right sectors, I can tell you we will celebrate at that moment.”
As the UAE marks the 60th anniversary of the sailing of the British Signal, the country is beginning a new voyage on a fresh course.
Timeline of Abu Dhabi's oil discovery
Aston martin DBX specs
Engine: 4.0-litre twin-turbo V8
Transmission: nine-speed automatic
Power: 542bhp
Torque: 700Nm
Top speed: 291kph
Price: Dh848,000
On sale: Q2, 2020
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
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.”
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Rebel%20Moon%20-%20Part%20One%3A%20A%20Child%20of%20Fire
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EZack%20Snyder%3Cbr%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3ESofia%20Boutella%2C%20Djimon%20Hounsou%2C%20Ed%20Skrein%2C%20Michiel%20Huisman%2C%20Charlie%20Hunnam%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2%2F5%3C%2Fp%3E%0A
KILLING OF QASSEM SULEIMANI
Singham Again
Director: Rohit Shetty
Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone
Rating: 3/5
The Gandhi Murder
- 71 - Years since the death of MK Gandhi, also christened India's Father of the Nation
- 34 - Nationalities featured in the film The Gandhi Murder
- 7 - million dollars, the film's budget
Teaching your child to save
Pre-school (three - five years)
You can’t yet talk about investing or borrowing, but introduce a “classic” money bank and start putting gifts and allowances away. When the child wants a specific toy, have them save for it and help them track their progress.
Early childhood (six - eight years)
Replace the money bank with three jars labelled ‘saving’, ‘spending’ and ‘sharing’. Have the child divide their allowance into the three jars each week and explain their choices in splitting their pocket money. A guide could be 25 per cent saving, 50 per cent spending, 25 per cent for charity and gift-giving.
Middle childhood (nine - 11 years)
Open a bank savings account and help your child establish a budget and set a savings goal. Introduce the notion of ‘paying yourself first’ by putting away savings as soon as your allowance is paid.
Young teens (12 - 14 years)
Change your child’s allowance from weekly to monthly and help them pinpoint long-range goals such as a trip, so they can start longer-term saving and find new ways to increase their saving.
Teenage (15 - 18 years)
Discuss mutual expectations about university costs and identify what they can help fund and set goals. Don’t pay for everything, so they can experience the pride of contributing.
Young adulthood (19 - 22 years)
Discuss post-graduation plans and future life goals, quantify expenses such as first apartment, work wardrobe, holidays and help them continue to save towards these goals.
* JP Morgan Private Bank
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E4.0-litre%20twin-turbo%20V8%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E640hp%20at%206%2C000rpm%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E850Nm%20from%202%2C300-4%2C500rpm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E8-speed%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E11.9L%2F100km%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EDh749%2C800%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Enow%3C%2Fp%3E%0A