beautification works that are now behind schedule.
beautification works that are now behind schedule.

Downtown Al Ain beautification project stalled



AL AIN // An ambitious infrastructure project in Al Ain's downtown district is expected to be completed "very soon", according to civic officials. Before the Al Ain Municipality began its downtown beautification project in May, Sheikh Khalifa and Sheikh Zayed streets were avenues lined with trees and shrubbery reflecting the city's oasis image. Seven months on, the main thoroughfares through the city are barren.

However, Rashid al Nabadi, one of the engineers in charge of the central district redevelopment plan said work would be completed very soon and the trees and flowers would be replanted. "The department of internal roads and infrastructure development has been studying the plans for the beautification," he said. "Several options are available and the municipality is now deciding on the best landscaping option to take. Replanting the downtown district is of extreme importance to the municipality."

Since the project began, four roundabouts have been converted to traffic-light controlled junctions, while pavements along Sheikh Khalifa Street have been widened. However, the project, which was initially due to be completed in around three months, fell behind schedule, affecting scores of businesses who overnight found themselves without parking for their customers. Early in the project, merchants said sales had dropped by as much as 90 per cent because shoppers had nowhere to park. Ali Jaber, 48, the owner of Al Safadi Restaurant, had complained of the disruption caused to his business. Since then the pavements have been widened and more parking spaces created, and Mr Jaber's business has returned to normal.

Today, traffic cones, warning tape and bricks stacked atop each other are indications that work is still going on. "The traffic cones are necessary to ensure that construction workers are not run over by motorists as the final tiling and repaving works are being completed," Mr al Nabadi said. "The project is in its final stage and once completed the traffic cones and construction equipment will be removed and replanting works will begin."

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Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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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.

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“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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