Customs deny blame over dhow fire at creek



DUBAI // Dubai Customs yesterday insisted it had liaised with the municipality before authorising a dhow gutted by fire to moor on the creek.

Officials at the municipality had blamed customs officers for granting the boat's owners permission to stay there.

The Bhakti Sagar caught fire on Sunday afternoon, with the blaze also destroying Dh200,000 worth of cargo on the dock.

It was the second time the dhow had been seriously damaged by a fire in the last three months. On Sunday, the boat was moored on the Deira side of the creek to carry out repairs from the first fire, in February.

"It was coordinated with Dubai Municipality to give permission to the burnt vessel to anchor in the same [harbour] to remove the residues from the damaged vessel [and] to keep the passages clear for ships," said Butti Al-Zafri, manager of customer service for Hamriyah, Creek and Marine Operations at Dubai Customs.

Municipality officials said they had asked the owners of the Bhakti Sagar to shift the dhow to Al Jedaf or Rashid Port to complete the maintenance required after the first fire.

The municipality plans to fine the owners of the Bhakti Sagar but has not yet decided on the amount.

Dubai Customs said the dhow, which was not carrying any goods, was at the pier waiting for another vessel to tug it back to India. It was supposed to leave tomorrow.

There were 17 men on board at the time of the fire. Four were working to fix the engine, while the rest were readying the ship to be towed.

The men escaped unharmed by jumping on to neighbouring skips or into the water.

Yesterday, municipality workers were removing the remains of the charred cargo from the nearby dock. The clean-up is due to finish today.

"It is our work to remove the cargo that caught fire," said Adel Abdulla Al Karrani, head of the municipality's waste management department waterways unit. "We started at 5 am on Monday. We had to wait 24 hours for the cargo to cool down. Nearly 90 per cent of the cargo was burnt. There is a lot of steel."

His department has removed more than 110 tonnes of burnt debris - mostly air conditioners, kitchen equipment such as refrigerators, generators and electrical parts - that were to be exported to Chabar, Iran.

The waterways team used five trucks to move the debris to the municipality's dumping site.

Dubai Police and Dubai Civil Defence were yesterday still investigating the cause of the fire.

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9pm: Al Wasl v Baniyas

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Company profile

Name: Fruitful Day

Founders: Marie-Christine Luijckx, Lyla Dalal AlRawi, Lindsey Fournie

Based: Dubai, UAE

Founded: 2015

Number of employees: 30

Sector: F&B

Funding so far: Dh3 million

Future funding plans: None at present

Future markets: Saudi Arabia, potentially Kuwait and other GCC countries

UAE currency: the story behind the money in your pockets

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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Stars: Paul Walter Hauser, Sam Rockwell, Brandon Stanley

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Founder: Smeetha Ghosh, one co-founder (anonymous)

Launch year: 2020

Employees: four – plans to add another 10 by July 2021

Financing stage: $250,000 bootstrap funding, approaching VC firms this year

Investors: Co-founders

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