RAS AL KHAIMAH // The electrocution of a seven-year-old boy has prompted calls for greater safety measures and accountability to prevent another tragedy.
Moyachery Safvan, known to most as Mohammed, died on Thursday night when he stepped on a live wire that was half-buried in a sand pitch while he was out playing with his father.
The wire was connected to a lamp post that had been activated during Ramadan to provide light for a nearby volleyball court.
"It's a trauma for the parents and the children," said Sandra Fernandes, the counsellor at Scholars Indian School, where Mohammed was in Grade 2.
"We would humbly request the authorities to take preventative measures. They need to make sure wires are not left in the open."
For boys in the neighbourhood, life revolves around the mosque and the sand pitch.
Ali Awad, an 18-year-old Yemeni who lives beside the pitch, said it was a favourite play area for his three- and four-year-old cousins.
His sisters were dropped off by the school bus just a few metres from where Mohammed died. He blamed authorities for the incident.
"The Government set the lights up for people to play in Ramadan," Mr Awad said. "When Ramadan finished they didn't turn it off."
The wire was cut after the accident and remains in the sand, raising concerns about the likelihood of similar accidents.
There is still a lit pitch on the beach opposite. "When the rain comes it will be a big problem," said Salem Awad, 25, Ali's cousin.
"There are wires like this everywhere in the city."
The Federal Electricity and Water Authority, which provides power to the emirate, could not be reached for comment.
Concern among local residents was exacerbated by the lack of an alternative play area in the neighbourhood, said Yasser Abdulla, 27, who lives near the Safvan family.
"There's no safe place to go, no parks, no places to play football," he said. "We need them."
Boys in the neighbourhood were reluctant to head outdoors for recreation again because of the incident.
Naduvile Althak, a 16-year-old who saw the tragedy, was among them.
"It's a very pathetic situation," he said. "I cannot say anything about the safety of these wires. "It's been like this for two months. We didn't think it was so dangerous [before]."
Mohammed was the youngest of a dozen boys who met to play volleyball on Thursdays.
Too small to join the game, he was collecting the ball from out of bounds when he made contact with the wire.
He is remembered as smart and mischievous with handsome features under black hair and slender eyebrows.
"He was very small, always a smiling face," Ms Fernandes said.
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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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