ABU DHABI // The school at the centre of the death of a schoolgirl will still be shut down despite the reversal of a court order for its closure, education officials have said.
Al Worood Academy Private School was ordered to close by the end of August after Nizaha Aalaa, a three-year-old KG1 pupil, died from heat exhaustion after being locked on a school bus last October.
This week, an appeals court overturned the judicial verdict ordering the school to close, and reduced the sentences of two people convicted over the child’s death. A third individual was acquitted of one charge and a fourth was cleared of any wrongdoing.
However, the Abu Dhabi Education Council (Adec) released a statement on Tuesday saying the decision to close the school is final.
Adec reaffirmed its earlier decision to revoke the school’s operating licence by the end of the current school year, citing “a number of legislative acts, in addition to Article No 83 on violating the council rules and regulations, as part of the Abu Dhabi Private School Regulations”.
“Adec has decided to shut down the school due to negligence in adhering to safety and security measures particularly with regards to the schools transportation system,” Adec said.
Education officials said they will continue running the school’s financial and administrative affairs until Al Worood is shut down.
Despite the court’s decision, Amer Al Marzooqi, a Dubai lawyer, said Adec has authority on whether to allow the school to operate.
“They have the authority to cancel the permit,” he said. “They are the administrative authority that monitors the education system in Abu Dhabi, to make sure that everything goes by the books and the law.”
Adec said it has made arrangements for 1,900 students affected by the closure, offering school seats to all of those students both on and off the island of Abu Dhabi, and within proximity to their place of residence to ensure convenient transportation.
Siblings are also given priority to be enrolled in the same school, officials said.
After being asked to leave his position after the incident last November, Roderick Williams, the former principal of the school, said he expects to return to the job after this week’s court decision, in spite of Adec’s statement.
“Adec asked me to leave the school until the matter has run its course in the courts,” said Mr Williams, who joined the school in August 2012. “I now expect Adec to reinstate me and return to the school.”
“There’s a lot of loose ends to be tied up,” he said. “Professionally, I want to see my students and my parents.”
“The court says the school should remain open, but Adec says it should close. What if the school does not close?”
Nizaha’s death had shocked the community and led to the introduction of new regulations on school transport.
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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.”
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