Medical supplies for Gaza donated by the Red Cross are loaded into an Antonov An-12 aircraft last month in Geneva.
Medical supplies for Gaza donated by the Red Cross are loaded into an Antonov An-12 aircraft last month in Geneva.

Cargo firms unite against ban on An-12 aeroplanes



Air cargo companies have joined forces to appeal against a decision by the General Civil Aviation Authority banning a Soviet-era aeroplane in UAE airspace. The authority last week ordered all Antonov An-12 aeroplanes out of the country by today, citing safety concerns after a recent string of accidents involving the four-engine turboprop plane. In a meeting yesterday with a civil aviation official, representatives of 14 air-cargo companies that use An-12s complained that the ban was unfair and said there was no evidence that the accidents were caused by technical problems with the planes.

"This is a claim that isn't supported by any particular document or evidence," said Alexander Smolin, general manager of Sky Support Service in Sharjah and a spokesman for the cargo companies. "This aircraft is as safe as any aircraft." In a letter to the authority, the companies said the incidents involving An-12s were caused by "crew mistreatment of the equipment". They said disciplinary actions had been taken "towards the faulty parties".

Aviation authority officials said yesterday that they could not comment because of an ongoing investigation into the safety of the Ukrainian-manufactured aeroplane. That was news to Mr Smolin. "No one has come to us about any sort of investigation into these issues," he said. Although the companies claim the ban is permanent, it is understood GCAA officials told the daily newspaper Al Ittihad it would only be a temporary ban.

Mr Smolin said air-cargo companies would have trouble meeting today's deadline to take the An-12s out of the UAE because they were under contract to such companies as DHL and UPS to make deliveries. Fifteen air-cargo operators here use An-12s to transport goods to Africa, the Middle East and South Asia frequently, from airports in Sharjah, Ras al Khaimah, Dubai and Fujairah. "A lot of aircraft here are bound with customers, with 80 per cent of these companies still under permanent contracts that have been prepaid," he said. "The operators cannot fulfil those contracts since they are being forced to leave the country."

"The number of people who are going to be affected will be more than 1,500 people, 15 airlines, more than 50 aircraft. We're talking about a decision here that will harm about 90 per cent of the air cargo market of the UAE. Airports in Ras al Khaimah and Fujairah will suffer because of this." International aviation authorities said transport authorities such as US Federal Aviation Administration typically do not ban aircraft types.

Instead, they typically impose bans on particular aviation and maintenance companies. Although they are banned in Iran and Sudan, variants of Antonov aircraft, including the An-12, are used in Africa and the Middle East for military and civilian cargo. They are inexpensive and considered by operators to be a versatile aircraft. The aviation authority's order last week referred to three recent incidents involving An-12s in Sharjah. It also noted a crash in Iraq last year, in which seven people died

hnaylor@thenational.ae

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
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

Emergency

Director: Kangana Ranaut

Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry 

Rating: 2/5

Game Changer

Director: Shankar 

Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram

Rating: 2/5

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  • Use unique usernames and passwords while enabling multi-factor authentication.
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Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now

Cricket World Cup League 2

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UAE fixtures
Free admission. All fixtures broadcast live on icc.tv

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Saturday March 19, v PNG at Dubai International Stadium
Monday March 21, v Nepal at Dubai International Stadium

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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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Install an air filter in your home.

Close your windows and turn on the AC.

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Key changes

Commission caps

For life insurance products with a savings component, Peter Hodgins of Clyde & Co said different caps apply to the saving and protection elements:

• For the saving component, a cap of 4.5 per cent of the annualised premium per year (which may not exceed 90 per cent of the annualised premium over the policy term). 

• On the protection component, there is a cap  of 10 per cent of the annualised premium per year (which may not exceed 160 per cent of the annualised premium over the policy term).

• Indemnity commission, the amount of commission that can be advanced to a product salesperson, can be 50 per cent of the annualised premium for the first year or 50 per cent of the total commissions on the policy calculated. 

• The remaining commission after deduction of the indemnity commission is paid equally over the premium payment term.

• For pure protection products, which only offer a life insurance component, the maximum commission will be 10 per cent of the annualised premium multiplied by the length of the policy in years.

Disclosure

Customers must now be provided with a full illustration of the product they are buying to ensure they understand the potential returns on savings products as well as the effects of any charges. There is also a “free-look” period of 30 days, where insurers must provide a full refund if the buyer wishes to cancel the policy.

“The illustration should provide for at least two scenarios to illustrate the performance of the product,” said Mr Hodgins. “All illustrations are required to be signed by the customer.”

Another illustration must outline surrender charges to ensure they understand the costs of exiting a fixed-term product early.

Illustrations must also be kept updatedand insurers must provide information on the top five investment funds available annually, including at least five years' performance data.

“This may be segregated based on the risk appetite of the customer (in which case, the top five funds for each segment must be provided),” said Mr Hodgins.

Product providers must also disclose the ratio of protection benefit to savings benefits. If a protection benefit ratio is less than 10 per cent "the product must carry a warning stating that it has limited or no protection benefit" Mr Hodgins added.

Company%20Profile
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Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
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  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Racecard

6pm: Al Maktoum Challenge Round 2 Group 1 (PA) $55,000 (Dirt) 1,900m  

6.35pm: Oud Metha Stakes Rated Conditions (TB) $60,000 (D) 1,200m  

7.10pm: Jumeirah Classic Listed (TB) $150,000 (Turf) 1,600m  

7.45pm: Firebreak Stakes Group 3 (TB) $150,000 (D) 1,600m  

8.20pm: Al Maktoum Challenge Round 2 Group 2 (TB) $350,000 (D) 1,900m  

8.55pm: Al Bastakiya Trial Conditions (TB) $60,000 (D) 1,900m  

9.30pm: Balanchine Group 2 (TB) $180,000 (T) 1,800m   

RACECARD
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