SHARJAH // Authorities are cracking down on illegal car washings on roads and in residential areas as part of a beautification and conservation campaign.
The practice has long been outlawed in the emirate, officials have said. The ban is among a number of similar measures against practices such as residents hanging their clothes to dry in windows, all of which are aimed at preserving the emirate’s image in the eyes of tourists.
Residents that want their cars cleaned are supposed to do it at petrol stations, retail car washes or inside the parking lots of approved malls, said Abdullah al Mulla, the Sharjah Municipality director general.
“Washing cars on roads and residential areas was outlawed in a local decree in 1989,” he said. “Last month the municipality council asked us to reinforce the rule after concerns that the city was getting untidy from roadside car washers, affecting the emirate’s image.
“We are also aiming at preserving the environment. There should be nothing going into the soil untreated.”
Even small amounts of soaps, oil and lubricants getting into ground water presented an environmental problem, Mr al Mulla said. A few malls have municipality permission to have cars washed in their parking lots and must ensure all safety measures relating to detergents and the like are followed.
The environmental issues also extend to water conservation. Sharjah has worked for almost three years to reduce consumption by using advanced technology, improving re-use and introducing prices that are at least three times those in Abu Dhabi, where some 60,000 buildings were fitted with water-saving devices last year.
The Sharjah Electricity and Water Authority (SEWA) has few resources to build large desalination plants, analysts have said, and is anxious to protect its remaining groundwater supplies. SEWA has ordered recycling systems be installed in 170 commercial buildings, mosques and institutions since 2009.
News of the crackdown was not music to the ears of residents, many of whom are having their cars washed in their residential parking lots. Nor was it popular with those who rely on the practice for additional income. Nadeer, 30, an Indian watchman on one of the flats in the al Nabaa area, washes several cars in the neighbourhood to supplement his salary as he struggles to provide for his two children. He said he could not even begin to understand the intentions of the ban.
“They have a lot of money and they know we struggle to survive on the meagre salaries they give us,” he said. “Now they also want to close other doors. Do they want our families to die?”
Nadeer, who asked that his surname not be printed, washes a car for Dh10 if it is a one-time job and charges Dh75 per month to his regular customers. He says he earns Dh1,000 from car washing each month. His watchman’s salary is Dh1,200.
Mohammed, another 30-year-old Indian, lost his job a year ago and has depended on his monthly earnings of Dh1,500 from car washings in the Rolla area to survive. He saw the ban as a warning to poorer expatriates.
“This is a polite way to tell us ‘go back to your country,’” he said. “You cannot live here without work and companies are not hiring. What can we do?”
The law stipulates a Dh250 fine for each vehicle being washed. While none of the car washers interviewed had encountered any officials or police asking them to stop their work, a police spokesman said the crackdowns were coming.
“If it has been announced as something banned or illegal, that is enough,” he said. “It’s coming and we shall not tell them when. Some have already seen us and like all raids it was by surprise.” He advised car washers to stop the practice before they were raided.
Most residents said they preferred the illegal car washers in their neighbourhoods as a cheaper alternative to going to a petrol station or a mall.
“It costs Dh45 to have your car washed at a petrol station and Dh30 in a licensed washing bay,” said Hamza, a resident of the al Nabaa area who would not give a surname. “That is more than half what I pay for my car to be washed for a full month.”
Only the licenced car washers were willing to say the ban was worthy. Rajan Kumar, who works at a washing bay in the Sharjah industrial area, said it would help to cut into the unnecessary competition from illegal workers.
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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
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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Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital
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What: 11th edition of the Mubadala World Tennis Championship
When: December 27-29, 2018
Confirmed: men: Novak Djokovic, Rafael Nadal, Kevin Anderson, Dominic Thiem, Hyeon Chung, Karen Khachanov; women: Venus Williams
Tickets: www.ticketmaster.ae, Virgin megastores or call 800 86 823