• President Sheikh Mohamed said Khalifa Port's new South Quay is an important addition to the country’s port infrastructure. All photos: UAE Presidential Court
    President Sheikh Mohamed said Khalifa Port's new South Quay is an important addition to the country’s port infrastructure. All photos: UAE Presidential Court
  • Sheikh Mohamed with staff at the south quay
    Sheikh Mohamed with staff at the south quay
  • The quay, which became operational in December 2020, has boosted the ability of the port to handle different types of cargo and a wide variety of ships
    The quay, which became operational in December 2020, has boosted the ability of the port to handle different types of cargo and a wide variety of ships
  • Sheikh Mohamed inaugurates the expansion of Khalifa Port
    Sheikh Mohamed inaugurates the expansion of Khalifa Port
  • Sheikh Mohamed and Sheikh Khaled bin Mohamed take a tour of the expanded port
    Sheikh Mohamed and Sheikh Khaled bin Mohamed take a tour of the expanded port
  • Sheikh Mohamed greets an employee of Abu Dhabi Ports
    Sheikh Mohamed greets an employee of Abu Dhabi Ports
  • Sheikh Mohamed and Capt Mohamed Al Shamisi, managing director and group chief executive of Abu Dhabi Ports, at the South Quay
    Sheikh Mohamed and Capt Mohamed Al Shamisi, managing director and group chief executive of Abu Dhabi Ports, at the South Quay
  • Sheikh Khaled views a masterplan display
    Sheikh Khaled views a masterplan display
  • Sheikh Mohamed views a map at the port
    Sheikh Mohamed views a map at the port
  • An aerial view of Khalifa Port
    An aerial view of Khalifa Port

South Quay an important addition to port infrastructure, President Sheikh Mohamed says


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President Sheikh Mohamed bin Zayed on Tuesday visited Khalifa Port's new South Quay.

The facility, which became operational in December 2020, has boosted the ability of the port to handle different types of cargo and service a wide variety of ships.

"The opening of the new South Quay at Khalifa Port is an important addition to our country’s ports infrastructure," Sheikh Mohamed wrote on Twitter.

"Its establishment builds upon the longstanding role that the UAE’s trade and logistics capabilities have played in our nation’s progress and development."

The South Quay facility, with two berths and a 37,000-square-metre terminal yard, was completed ahead of schedule during the pandemic, Abu Dhabi Ports said at the time.

The development is a part of Dh4 billion expansion of the port.

Emirates Global Aluminium, the largest industrial company in the UAE outside the oil and gas sector, use the complex in addition to its own nearby docks for bauxite shipments, Abu Dhabi Ports said.

The first bauxite shipment destined for EGA’s Al Taweelah alumina refinery anchored at the quay on December 2020.

Abu Dhabi is diversifying its economy amid a push to reduce its dependence on hydrocarbons, boost foreign investment and promote trade through development of its ports.

“The introduction of the South Quay, together with the adjacent Khalifa Port Logistics development, will dramatically boost Khalifa Port’s ability to handle any type of cargo and service a wide variety of customers,” Abu Dhabi Ports said on the first day of operations.

Abu Dhabi recorded a 12 per cent rise in non-oil foreign trade to Dh124 billion ($33.7 billion) in the first half of the year.

Total exports in the six months to the end of June climbed 26 per cent to Dh49.5 billion, while imports and re-exports increased 4 per cent and 6 per cent to Dh51.5 billion and Dh23 billion, respectively, Abu Dhabi Media Office said.

Abu Dhabi Ports is part of ADQ, one of the region’s largest holding companies that owns stakes in companies spanning key sectors of the economy, including media, utilities, aviation and health care.

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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Wins by KO: 26
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Updated: December 13, 2022, 9:30 AM