People walking at "The Walk" at JBR. The UAE’s population has increased from 4.1 million in 2005 to 8.26 million last year. The growth would be a ‘tremendous shock’ for any economy, one demographics expert says.
People walking at "The Walk" at JBR. The UAE’s population has increased from 4.1 million in 2005 to 8.26 million last year. The growth would be a ‘tremendous shock’ for any economy, one demographics expert says.
People walking at "The Walk" at JBR. The UAE’s population has increased from 4.1 million in 2005 to 8.26 million last year. The growth would be a ‘tremendous shock’ for any economy, one demographics expert says.
People walking at "The Walk" at JBR. The UAE’s population has increased from 4.1 million in 2005 to 8.26 million last year. The growth would be a ‘tremendous shock’ for any economy, one demographics e

Bulging nation puts strain on public services


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DUBAI // A population that has more than doubled in the past six years has placed a unique strain on public sector services, experts from a variety of fields have said.

In providing utilities, education, health care, food security, waste management and infrastructure, officials have battled to cope with a population that surged beyond all expectations, as well as international standards, from year to year.

The typical population growth witnessed in the western world is about two to three per cent, said Paul Dyer, a demographics expert in Dubai School of Government. From 2006 to 2007, the population of the Emirates increased by 24 per cent.

"In terms of normal planning and infrastructure development for either a developed or a developing economy, it's a tremendous shock," said Mr Dyer. "The changes were huge but somehow they managed to keep up with them."

The country's population has increased from 4.1 million in 2005 to 8.26 million last year, according to figures released last week by the National Bureau of Statistics.

The data, which was calculated by looking at visas issued and cancelled, as well as births and deaths, represents an indication of the growth of the country as it entered its boom years between 2006 and 2009.

However, the growth has posed significant challenges to the provision of basic needs.

Utilities

The UAE is one of the highest per capita water users in the world, with the average citizen consuming 550 litres a day - well above the global average of 250 litres. That usage, combined with a doubling of the population, has meant that utility providers have been strained to the limit.

There are 83 desalination plants across the country working to provide commercial, domestic and agricultural water needs, but they are expected to become insufficient to meet demand by 2017.

"Water is a challenge and is considered the primary challenge in the UAE," Rashid bin Fahad, Minister of Environment and Water, told a Federal National Council meeting last November. "We are not in a comfortable position. On the contrary, we are under a lot of pressure and challenges."

Demand in the Northern Emirates has outpaced supply, evidenced each summer by a series of blackouts and dips in electrical power, or brownouts. Recently the Government announced a Dh5.7billion package to address the area's water and electricity problems.

Infrastructure

The population increase also creates challenges in integrating road networks across the country, not least in Dubai. Improved public transport, such as the Dh29 billion Metro network, is a key part of a plan to cater to a larger population. In addition, the Roads and Transport Authority last year assigned Dh2.29 billion for upgrading Dubai's roads.

By June, Etihad Rail plans to break ground in Al Gharbia on the first section of a planned national freight and passenger rail system by 2017.

While ongoing internal road projects in Dubai and Abu Dhabi had been designed to meet the needs of a growing population, more attention needed to be paid to infrastructure in the Northern Emirates, said Varkki Pallathucheril, a professor of urban planning at the American University of Sharjah's College of Architecture and Design.

"The Northern Emirates clearly still have some catching up to do," he said.

Education

A study by the investment bank Alpen Capital last year suggested that by 2020 an additional 6,200 schools would be required within the GCC region to meet demand.

The number of students was expected to jump from 9.5 million to more than 11.3 million in the GCC, as countries such as the UAE and Saudi Arabia experienced an increase in expatriate population in the next 20 years, the survey said.

More than 376,612 students attend private schools in the UAE. Enrolments in private secondary education rose from 45 per cent in 2000 to 67 per cent in 2007, according to the report. At present, parents have complained of a shortage of spaces, particularly in schools with a Filipino and Indian curriculum, which also cater to medium to low-income families. The Abu Dhabi Education Council hopes to create 16,700 places in Indian schools by 2016.

Adec officials said there was a need for an additional 200 schools by 2018 to address the issue of the education needs of a growing population. The Knowledge and Human Development Authority will open four more schools by September, which, in concert with several expansions at schools, will meet some of the demand for spaces.

The authority was also trying to speed up the admissions process, said Mohammed Darwish, the chief of the regulations and compliance commission at the organisation.

Waste management

A rapid influx of migrants in Dubai and Abu Dhabi has put tremendous pressure on waste disposal networks, officials say.

In Dubai, waste rose from 4,000 tonnes a day in 2004 to 10,000 in 2009, it has been reported. There are 13,000 tonnes a day being disposed of in Abu Dhabi, according to figures from this year.

Those numbers have put particular strain on the existing landfill sites in both emirates.

In the capital, organisations will be charged Dh225 per tonne of waste dumped in landfills under a tariff programme launched this year by the Centre of Waste Management in Abu Dhabi.

The centre has also launched a pilot door-to-door recycling programme in Khalifa City, with hopes that it can be rolled out across the emirate.

Dubai has also launched a door-to-door collection programme that will encourage the separation of waste for the purposes of recycling.

Thousands more doctors and nurses will be needed

ABU DHABI // The number of doctors and nurses must double over the next decade if the emirate is to cope with an ageing and rapidly expanding population, according to a report released last year by the Health Authority-Abu Dhabi.

The report estimated the number of doctors would need to jump to 10,700 in all specialities, while the number of nurses would need to rise to 13,900.

The shortage spills over to the rest of the country as well. The Minister of Health, Hanif Hassan, recently acknowledged that federal hospitals, especially those in Sharjah and the Northern Emirates, suffer from chronic shortages of staff and equipment, and are losing doctors because of budget shortfalls.

Last year, more than 2,200 medical workers were hired to address the shortage in the Northern Emirates. The Ministry of Health said it will continue to hire staff.

However, impediments remain. Doctors, nurses and hospital directors have consistently said that any efforts to address a staffing shortage were hampered by a slow licensing process that demanded needlessly strict criteria.

In 2010, Dr Tej Maini, the chief executive of Sheikh Khalifa Medical City in the capital, said there was a shortage in every sector of health care – from pharmacists and speech therapists, to emergency care specialists and cardiologists. To attract the best medical talent to the UAE, “time-honoured means of recruiting people are not going to work; we have to be creative and look at things differently”, he said.

Attractive packages and salaries would help solve the problem, he added.

Seha, the Abu Dhabi Health Services Company, is beginning to address the need of a growing population by concentrating on primary health care. At least seven more primary healthcare facilities are scheduled to open in the emirate this year, and private healthcare operators are addressing the need across the country.

Dr Oliver Harrison, the director of public health and policy at Haad, said: “There has been a 35 per cent growth in primary health care in Abu Dhabi over the past year, in terms of facilities, doctors, and so on, and this has to continue.”

Abu Dhabi’s young population – the average age is 28 – is relatively undemanding of hospital facilities. About 10.5 million of the 11 million healthcare encounters last year were outpatients – a demand primary health care needs to meet, he said.

More Emirati doctors and nurses, said Zaid al Siksek, the chief executive of Haad, could help.

* Reporting by Martin Croucher, Afshan Ahmed, Maey El Shoush, Hala Khalaf and Ramola Talwar Badam

TOURNAMENT INFO

Women’s World Twenty20 Qualifier

Jul 3- 14, in the Netherlands
The top two teams will qualify to play at the World T20 in the West Indies in November

UAE squad
Humaira Tasneem (captain), Chamani Seneviratne, Subha Srinivasan, Neha Sharma, Kavisha Kumari, Judit Cleetus, Chaya Mughal, Roopa Nagraj, Heena Hotchandani, Namita D’Souza, Ishani Senevirathne, Esha Oza, Nisha Ali, Udeni Kuruppuarachchi

Key figures in the life of the fort

Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.

Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.

Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.

Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.

Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.

Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.

Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.

Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.

Sources: Jayanti Maitra, www.adach.ae

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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.”

Starring: Jamie Foxx, Angela Bassett, Tina Fey

Directed by: Pete Doctor

Rating: 4 stars

What is blockchain?

Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.

The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.

Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.

However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.

Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.

The biog

Age: 35

Inspiration: Wife and kids 

Favourite book: Changes all the time but my new favourite is Thinking, Fast and Slow  by Daniel Kahneman

Best Travel Destination: Bora Bora , French Polynesia 

Favourite run: Jabel Hafeet, I also enjoy running the 30km loop in Al Wathba cycling track

Tributes from the UAE's personal finance community

• Sebastien Aguilar, who heads SimplyFI.org, a non-profit community where people learn to invest Bogleheads’ style

“It is thanks to Jack Bogle’s work that this community exists and thanks to his work that many investors now get the full benefits of long term, buy and hold stock market investing.

Compared to the industry, investing using the common sense approach of a Boglehead saves a lot in costs and guarantees higher returns than the average actively managed fund over the long term. 

From a personal perspective, learning how to invest using Bogle’s approach was a turning point in my life. I quickly realised there was no point chasing returns and paying expensive advisers or platforms. Once money is taken care off, you can work on what truly matters, such as family, relationships or other projects. I owe Jack Bogle for that.”

• Sam Instone, director of financial advisory firm AES International

"Thought to have saved investors over a trillion dollars, Jack Bogle’s ideas truly changed the way the world invests. Shaped by his own personal experiences, his philosophy and basic rules for investors challenged the status quo of a self-interested global industry and eventually prevailed.  Loathed by many big companies and commission-driven salespeople, he has transformed the way well-informed investors and professional advisers make decisions."

• Demos Kyprianou, a board member of SimplyFI.org

"Jack Bogle for me was a rebel, a revolutionary who changed the industry and gave the little guy like me, a chance. He was also a mentor who inspired me to take the leap and take control of my own finances."

• Steve Cronin, founder of DeadSimpleSaving.com

"Obsessed with reducing fees, Jack Bogle structured Vanguard to be owned by its clients – that way the priority would be fee minimisation for clients rather than profit maximisation for the company.

His real gift to us has been the ability to invest in the stock market (buy and hold for the long term) rather than be forced to speculate (try to make profits in the shorter term) or even worse have others speculate on our behalf.

Bogle has given countless investors the ability to get on with their life while growing their wealth in the background as fast as possible. The Financial Independence movement would barely exist without this."

• Zach Holz, who blogs about financial independence at The Happiest Teacher

"Jack Bogle was one of the greatest forces for wealth democratisation the world has ever seen.  He allowed people a way to be free from the parasitical "financial advisers" whose only real concern are the fat fees they get from selling you over-complicated "products" that have caused millions of people all around the world real harm.”

• Tuan Phan, a board member of SimplyFI.org

"In an industry that’s synonymous with greed, Jack Bogle was a lone wolf, swimming against the tide. When others were incentivised to enrich themselves, he stood by the ‘fiduciary’ standard – something that is badly needed in the financial industry of the UAE."

North Pole stats

Distance covered: 160km

Temperature: -40°C

Weight of equipment: 45kg

Altitude (metres above sea level): 0

Terrain: Ice rock

South Pole stats

Distance covered: 130km

Temperature: -50°C

Weight of equipment: 50kg

Altitude (metres above sea level): 3,300

Terrain: Flat ice
 

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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The specs

Engine: 1.6-litre 4-cyl turbo

Power: 217hp at 5,750rpm

Torque: 300Nm at 1,900rpm

Transmission: eight-speed auto

Price: from Dh130,000

On sale: now

UAE currency: the story behind the money in your pockets
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

What is a robo-adviser?

Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.

These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.

Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.

Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.

The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)