Abu Dhabi // The Government has rescued a scheme to build 550 air-conditioned bus shelters around the emirate after the private company contracted to install and maintain them pulled out over concerns that it would not recoup its costs.
Passengers will be able to keep cool as they wait in the first 20 shelters by the end of this month, according to Saeed al Hameli, general manager of bus transportation for the Department of Transport. He said 80 would be installed on the island by October and all 550 would be operational by the end of 2010.
Also this month, 59 German-built buses from MAN will supplement the existing fleet of 125 city and 30 suburban buses. With a target date of June 20, that should offer some relief from rush-hour crowding and reduce waits at bus stops.
Each of the 12-metre, air-conditioned buses costs Dh1.8m (US$490,000) and can carry about 65 passengers, 34 of them seated. The vehicles will also all have wheelchair ramps and five closed-circuit television cameras.
Mr al Hameli said the Abu Dhabi Government's Executive Council had approved procurement of the shelters with government money, signalling that transport projects will go ahead despite the economic downturn.
"I can say we have the full support financially from the Government in all our projects we have announced and we are going ahead with our plan.
"This is the reliability of the Government. They know the infrastructure for public transport is part of their improvement plan."
The build-operate-transfer deal announced last July with Ströer Concept Outdoor, a partnership between the German Ströer Group and the UAE company Concept Outdoor, would have seen the contractor spending more than Dh100m on installing the shelters with the plan of recouping its costs by selling advertising.
Mr al Hameli said the company had backed out because of the impact of the "global crisis" on the advertising market.
When contacted by The National, Marc Zeisel, director of corporate business development for Ströer out-of-home media, who was on hand for the announcement last summer, said inquiries about the project should be directed to the Department of Transport. Aldrin Fernandes, chairman of Concept Group, also declined to comment.
The department has hired a company to install the initial shelters, but would not provide its name. Mr al Hameli said it planned to invite tenders for the remainder in stages.
Previously, the department had said it would open 170 shelters this summer, a proportion of which would be air-conditioned. The first with air-conditioning was opened in November near the Central Bank building on Bainunah Street. It has eight seats and standing room for 16 people, and includes a security camera and a monitor displaying route maps and city information.
Mr al Hameli said the department was keeping the same specifications for its shelters and that all 550 would now have air-conditioning.
The department has pencilled in the majority of the first 20 shelters along Airport Road and Fourth Street, with locations including shelters near Al Jazira Sports Club and Al Noor Hospital.
At the same time, the new buses mean people travelling from the suburbs of Musaffah, Baniyas and Shahama, as well as airport passengers, can expect an improved service, as the turquoise-green city buses operating around the city since last June will be added to suburban routes.
The department aims to increase the frequency on these routes to every 20 minutes, compared with about every 40 minutes at present.
That news was welcomed by one bus user, Rex Ruby, a sales manager for a chocolate importer, who lives in Shahama.
"We are in the summer now and there is no development," he said. "These are hot days and you are riding on a bad bus like this. We don't have AC, it is very dirty, no hygiene inside. I have to change my clothes when I get to work."
Mr al Hameli said the financial downturn and the impact of pirate activity on shipping schedules meant the intention announced earlier to have 125 new buses in operation by the end of March had been pushed back. Training drivers and getting the vehicles insured and registered had also taken longer than expected.
However, the department was on schedule to have 500 new buses from MAN and Mercedes operating this year. By the end of next year it planned to have 1,360 buses running on up to 150 local, regional and intercity routes. Al Ain's service should also improve this autumn, with the arrival of 50 Mercedes buses, according to Mr al Hameli.
A map of the bus routes can be found on The National's website, www.thenational.ae.
@Email:mchung@thenational.ae
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Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
The five pillars of Islam
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The Library: A Catalogue of Wonders
Stuart Kells, Counterpoint Press
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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.”
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
MATCH INFO
Champions League quarter-final, first leg
Tottenham Hotspur v Manchester City, Tuesday, 11pm (UAE)
Matches can be watched on BeIN Sports
What is the FNC?
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
RACE SCHEDULE
All times UAE ( 4 GMT)
Friday, September 29
First practice: 7am - 8.30am
Second practice: 11am - 12.30pm
Saturday, September 30
Qualifying: 1pm - 2pm
Sunday, October 1
Race: 11am - 1pm
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How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Honeymoonish
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DMZ facts
- The DMZ was created as a buffer after the 1950-53 Korean War.
- It runs 248 kilometers across the Korean Peninsula and is 4km wide.
- The zone is jointly overseen by the US-led United Nations Command and North Korea.
- It is littered with an estimated 2 million mines, tank traps, razor wire fences and guard posts.
- Donald Trump and Kim Jong-Un met at a building in Panmunjom, where an armistice was signed to stop the Korean War.
- Panmunjom is 52km north of the Korean capital Seoul and 147km south of Pyongyang, North Korea’s capital.
- Former US president Bill Clinton visited Panmunjom in 1993, while Ronald Reagan visited the DMZ in 1983, George W. Bush in 2002 and Barack Obama visited a nearby military camp in 2012.
- Mr Trump planned to visit in November 2017, but heavy fog that prevented his helicopter from landing.
The more serious side of specialty coffee
While the taste of beans and freshness of roast is paramount to the specialty coffee scene, so is sustainability and workers’ rights.
The bulk of genuine specialty coffee companies aim to improve on these elements in every stage of production via direct relationships with farmers. For instance, Mokha 1450 on Al Wasl Road strives to work predominantly with women-owned and -operated coffee organisations, including female farmers in the Sabree mountains of Yemen.
Because, as the boutique’s owner, Garfield Kerr, points out: “women represent over 90 per cent of the coffee value chain, but are woefully underrepresented in less than 10 per cent of ownership and management throughout the global coffee industry.”
One of the UAE’s largest suppliers of green (meaning not-yet-roasted) beans, Raw Coffee, is a founding member of the Partnership of Gender Equity, which aims to empower female coffee farmers and harvesters.
Also, globally, many companies have found the perfect way to recycle old coffee grounds: they create the perfect fertile soil in which to grow mushrooms.
Mohammed bin Zayed Majlis
Have you been targeted?
Tuan Phan of SimplyFI.org lists five signs you have been mis-sold to:
1. Your pension fund has been placed inside an offshore insurance wrapper with a hefty upfront commission.
2. The money has been transferred into a structured note. These products have high upfront, recurring commission and should never be in a pension account.
3. You have also been sold investment funds with an upfront initial charge of around 5 per cent. ETFs, for example, have no upfront charges.
4. The adviser charges a 1 per cent charge for managing your assets. They are being paid for doing nothing. They have already claimed massive amounts in hidden upfront commission.
5. Total annual management cost for your pension account is 2 per cent or more, including platform, underlying fund and advice charges.
Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates