Burj Khalifa suicide jump confirmed by police


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UPDATE: Burj Khalifa suicide jumper 'was grieving for dead brother'

DUBAI // A man jumped to his death from the Burj Khalifa yesterday in the first recorded suicide from the world's tallest building.

The man, believed to be in his 30s and from India, jumped from an air vent and landed on the terrace of a lower floor.

An expert on the tower’s design suggested he may have jumped from the 148th floor, where there is a small deck, and landed on the 124th-floor observatory.  A customer service representative at the observatory said at 6pm yesterday it was closed “for maintenance”.

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A contractor who works at the Burj said last night the incident happened in the early morning and the body was found by a security officer from Emaar, the tower's developers.

“One of the security personnel spotted the body at the observation deck, after which we got to know of the incident.

“We immediately checked to see if he was one of our staff. The entire area was cordoned off.”

He said completion work was continuing in certain sections of the Burj Khalifa and the worker could have been employed by one of the many sub-contractors involved.

Police said the dead man worked at a company inside the Burj and had recently had a request for a holiday turned down.

There was some confusion yesterday over the details of the fall. Floors 45 to 108 of the tower are private residences, and most of the remaining floors are used as corporate suites. The At the Top public observatory is on the 124th floor, and the restaurant At.mosphere is on floor 122.

Police said the man landed on a balcony on the 108th floor, but Adam Farani, a Better Homes consultant who specialises in the tower, said that floor did not have balconies and the man was more likely to have fallen on to the observatory on the 124th floor.

The Indian consulate said yesterday that it had not been officially informed of the suicide and was therefore not able to comment.

Gruesome photos purporting to show the scene of the tragedy were circulating on social media sites yesterday.

In a statement, Emaar Properties said: "At around 9am an incident involving a male was reported at the Burj Khalifa site. The concerned authorities have confirmed that it was a suicide, and we are awaiting the final report."

Police are investigating.

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Analysis

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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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