Student teams compete in the qualifying races of the Global Hybrid Electric Car Challenge in Abu Dhabi on Thursday. Ravindranath K / The National
Student teams compete in the qualifying races of the Global Hybrid Electric Car Challenge in Abu Dhabi on Thursday. Ravindranath K / The National

Electric racers lead the charge



ABU DHABI // The university students preparing their vehicles for the Global Hybrid Electric Car Challenge are hoping not only to win, but also to move their careers ahead.

“This is not just about this race or who wins, of course that’s important, but this is about these students’ futures and our future. If we are to exist we need to start thinking about humanity working with the environment,” said Professor Sami Ainane of United Arab Emirates University, who is a co-founder of the race.

Student teams from universities in the UAE, Egypt, Kuwait and Qatar will compete in the challenge, when they will be asked to race for 300 kilometres to test their vehicle’s energy efficiency.

That will take place over two days this weekend. Today, two races will involve the refrigerator-sized vehicles running on electricity alone.

On Saturday, the cars will race using electric and petrol-powered hybrid engines in a race to the finish.

“I am constantly telling my racers, just because someone is overtaking you doesn’t mean he’s actually winning. Slow down, understand your vehicle,” said Prof Ainane.

As a test of efficiency and not speed, this event will require teams to make decisions regarding the design of their vehicles, which cost about US$6,000 (Dh22,000) to build.

For example, during the second race, teams may opt to equip their cars with generators to supplement the battery energy while moving. Alternatively, they could retain the generators in the pit-stops and only charge when they pull in. Both choices have distinct advantages and disadvantages and each decision will affect performance.

Those who opted to put the generator on board will make less frequent pit-stops but will be slowed down by the weight of the generator. Those who chose otherwise will have a more lightweight build but will have to go in to the pits to recharge.

“To get the edge, to get a leg-up on the competition, we’ve decided to make our build as lightweight as possible,” said Alaaddin Al Khuzai, a Yemeni who is in his fourth year of an electrical engineering course at UAEU.

To build their cars, each team was provided with a basic kit comprising all of the necessary components. A significant portion of design was left up to their engineering prowess.

“Honestly, it was difficult, we had a lot of girls drop out but we kept at it and now we are so happy to be here,” said Tawahud Al Katheeri, an Emirati mechanical engineering student at the Petroleum Institute.

As part of the only all-female team to take last year’s model and update it, Ms Al Katheeri, the team leader, and her group of 10 engineers had to work in a short space of time.

“We basically spent our entire winter break building this car and now we think we have a good chance at winning,” she said.

Last year, an all-female team from Qatar University took first place and the Emirati women are hoping to emulate this success.

Dr Fahad Almaskari, event director for the challenge in Abu Dhabi, said he hoped the race would raise the profile of science and technology subjects.

“Supporting students to develop solutions for the next generation of electric cars is an exciting opportunity to not only build innovation capacity across the Middle East but also to invest in a sustainable future for our youth,” he said.

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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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