Wreckage inside the military camp where the UPS aircraft crashed in Dubai.
Wreckage inside the military camp where the UPS aircraft crashed in Dubai.
Wreckage inside the military camp where the UPS aircraft crashed in Dubai.
Wreckage inside the military camp where the UPS aircraft crashed in Dubai.

Crash pilot 'may have been trying to avoid disaster'


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DUBAI // The pilot of the cargo plane that crashed into a military base last night may have been trying to land in the base to avoid causing a "disaster on the ground", one expert suggested today, The pilot and co-pilot of the aircraft both died in the crash. No one else was injured. Dr Theodore Karasik, the director of research and development at the Institute for Near East and Gulf Military Analysis in Dubai, speculated that crashing in the base was deliberate to avoid hitting other sites nearby. Smoke and fire reported in the cockpit could have been caused by a number of factors, such as faulty wiring, lack of maintenance or a checklist problem, he said. Phil Smith, a member at RAES Flight Operations Group and a retired pilot who specialises in aircraft technical issues, agreedthat the cockpit fire indicated an electrical problem.

Extinguishes on board would have not been enough to handle the fire because of the huge amount of power of the plane, he said Investigators have so far only found the body of one of two pilots who were on board the plane when it crashed inside the military camp in Dubai. The General Civil Aviation Authority (GCAA) has begun investigating the crash of United Parcel Service (UPS) Flight 6, at around 7.45pm, but officials said it is too early to speculate about a cause.

Saif al Suwaidi, the GCAA director general, said today investigators have also located one of the plane's black boxes, containing voice recordings, among the wreckage of the 747-400. "We have started the investigation and have managed to retrieve one of the bodies," he said. "The other has still not been retrieved." The plane crashed inside the Nad al Sheba Military Camp shortly after taking off from Dubai International Airport en route to Cologne, Germany.

The base was closed to outsiders today and the wreckage could not be seen from the exterior. Mr al Suwaidi said there was only slight damage"to some empty buildings" on the base. GCAA officials are gathering eyewitness statements from areas near to the crash site, which is close to the Emirates Road and Al Ain Road intersection, opposite Silicon Oasis. Included among the cargo plane's load were "children's toys and computer accessories", Mr al Suwaidi said.

The US National Transportation Safety Board also confirmed its involvement in the investigation, announcing that it will dispatch a team to the UAE, including representatives from the Federal Aviation Administration and Boeing. UPS has also dispatched investigators to assist in the enquiry, the company confirmed. Scott Davis, the chairman of chief executive of UPS, said: "This is a terrible tragedy and all of us at UPS extend our deepest sympathies to the families and friends of the victims. We are doing our best to learn exactly what happened." zconstantine@thenational.ae hhassan@thenational.ae

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Thursday February 8, v Kenya; Friday February 9, v Canada; Sunday February 11, v Nepal; Monday February 12, v Oman; Wednesday February 14, v Namibia; Thursday February 15, final

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Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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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Founded: 2018

Based: Dubai, UAE

Sector: Startups

Size: 14

Funding: $1.7m from HNIs

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Where to apply

Applicants should send their completed applications - CV, covering letter, sample(s) of your work, letter of recommendation - to Nick March, Assistant Editor in Chief at The National and UAE programme administrator for the Rosalynn Carter Fellowships for Mental Health Journalism, by 5pm on April 30, 2020

Please send applications to nmarch@thenational.ae and please mark the subject line as “Rosalynn Carter Fellowship for Mental Health Journalism (UAE programme application)”.

The local advisory board will consider all applications and will interview a short list of candidates in Abu Dhabi in June 2020. Successful candidates will be informed before July 30, 2020. 

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PROFILE OF INVYGO

Started: 2018

Founders: Eslam Hussein and Pulkit Ganjoo

Based: Dubai

Sector: Transport

Size: 9 employees

Investment: $1,275,000

Investors: Class 5 Global, Equitrust, Gulf Islamic Investments, Kairos K50 and William Zeqiri

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Company name: Entrupy 

Co-founders: Vidyuth Srinivasan, co-founder/chief executive, Ashlesh Sharma, co-founder/chief technology officer, Lakshmi Subramanian, co-founder/chief scientist

Based: New York, New York

Sector/About: Entrupy is a hardware-enabled SaaS company whose mission is to protect businesses, borders and consumers from transactions involving counterfeit goods.  

Initial investment/Investors: Entrupy secured a $2.6m Series A funding round in 2017. The round was led by Tokyo-based Digital Garage and Daiwa Securities Group's jointly established venture arm, DG Lab Fund I Investment Limited Partnership, along with Zach Coelius. 

Total customers: Entrupy’s customers include hundreds of secondary resellers, marketplaces and other retail organisations around the world. They are also testing with shipping companies as well as customs agencies to stop fake items from reaching the market in the first place. 

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