Shelved plans for a UAE hyperloop system could be dusted off thanks to renewed interest in developing a passenger line in Italy by 2029.
The industry was dealt a blow in December when Hyperloop One – the start-up that proposed a high-speed transport system in the Emirates and other countries – announced it was ending its development and selling assets.
Although a long-established means of high-speed travel in theory, the electric-powered tube technology proved expensive and difficult to achieve in reality, despite 1,000kph speeds having the potential to cut travel times and the environmental impact of mass travel.
But the plans in Italy have renewed interest as Andres de Leon, chief executive of HyperloopTT, says “now there is a real project, there is a real opportunity”.
We are changing the world from the point of view of transport infrastructure
Andres de Leon,
HyperloopTT chief executive
The proposed hyperloop link between Venice and Padua is a joint venture between the Italian government and private investors.
The €800 million ($862 million) project aims to become the world’s first working passenger system and will incorporate freight logistics in an effort to take heavy goods vehicles off the busy route in Italy’s industrial north.
“Since the announcement of the Italian project and now the signature of the contract, this has reignited the interest in hyperloop elsewhere,” Mr de Leon told The National.
“Now there is a real project, there is a real opportunity. With the pandemic, there was a moment where interest decreased and the conditions to progress the industry were very difficult.
“And because of that, we have relaunched conversations in the region.
“With the environment in this region, we are re-engaging with partners and with people interested about this in the past.
“Now we are seeing a resurgence in worldwide interest.
“If there's going to be this money for the technology development [in Italy], we can capitalise on that worldwide. There are good opportunities.”
The Venice-Padua link
Once complete, it is hoped the Hyper Transfer project will reduce heavy traffic, decrease traditional transport times and energy consumption, improve road safety, and enhance connections between Venice-Mestre and Padua.
Bibop Gresta, founder and chief executive of Hyperloop Italia, said the industry is ready for the next stage of development.
“The hyperloop sector's growth is remarkable, marking a renaissance period,” he said.
“HyperloopTT's decade of technological development, alongside rapid advancements in Europe and China's successful tests, underscores the industry's vitality.
“Italy stands poised to be at the forefront of this eco-friendly, high-speed transport revolution.”
Hyperloop One: a history
Founded in 2014, Hyperloop One – formerly Virgin Hyperloop – had pressed on with research and development, raising more than $450 million in investment and creating a passenger test track in the Nevada desert.
High-profile investors included DP World, which backed the project since 2016 and aimed to introduce the technology to freight operations.
A hyperloop simulator at Expo2020 in Dubai showed the potential of the system to transform logistics.
Meanwhile, rivals HyperloopTT were close to launching the technology in Abu Dhabi in 2020, before the global pandemic derailed plans.
With a development site in Brazil, planned freight operations in Germany and a running test track in France, HyperloopTT had looked the front-runner in overcoming significant financial obstacles, as well as developing a regulatory and insurance safety framework.
Doubters have been too quick to sound the death knell for the technology, according to Mr de Leon, who said the science retains the potential to transform travel.
“The news of the closing of Hyperloop One was not good news for the industry, that’s logical – but on the other hand, we recognised their efforts to advance the industry,” he said.
“The industry is growing, with some small companies in Europe and it's also important to say that China is advancing in the hyperloop.
“The main message is the industry is in good health, it’s also true we have been 10 years in development.
“People ask if this going to arrive or not, and when is it coming?
“It is important to understand we are not just doing a typical start-up, a web application or a mobile app – we are changing the world from the point of view of transport infrastructure.”
The system moves people and goods at air travel speeds safely, efficiently and sustainably.
Scientists claim it has the potential to reduce travel times between city centres from hours to minutes, promoting widespread economic expansion throughout connected regions while replacing current emissions-heavy travel options.
The global picture
High-speed rail networks using bullet trains and magnetic levitation are currently the fastest ground transport systems, reaching around 500kph in Shanghai.
While hyperloops can be faster and aim to run continuously between points, they will carry fewer passengers.
Other players in the industry include Hardt Hyperloop in the Netherlands, Spanish company Zeleros and DGW Hyperloop – India’s first venture that completed a feasibility study to cut travel times from Delhi to Mumbai from three hours to under an hour.
California-based HyperloopTT is now shifting focus from its 300-metre test track in Toulouse to bring the high-speed link to Italy.
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.”
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
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Gulf Under 19s final
Dubai College A 50-12 Dubai College B
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Company profile
Company name: Suraasa
Started: 2018
Founders: Rishabh Khanna, Ankit Khanna and Sahil Makker
Based: India, UAE and the UK
Industry: EdTech
Initial investment: More than $200,000 in seed funding
The specs: 2018 Jeep Compass
Price, base: Dh100,000 (estimate)
Engine: 2.4L four-cylinder
Transmission: Nine-speed automatic
Power: 184bhp at 6,400rpm
Torque: 237Nm at 3,900rpm
Fuel economy, combined: 9.4L / 100km
THE%20HOLDOVERS
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Napoleon
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SPEC%20SHEET%3A%20NOTHING%20PHONE%20(2)
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Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.