Two stations on Emirates Road in Ajman continue to pump fuel day and night. Jeff Topping / The National
Two stations on Emirates Road in Ajman continue to pump fuel day and night. Jeff Topping / The National
Two stations on Emirates Road in Ajman continue to pump fuel day and night. Jeff Topping / The National
Two stations on Emirates Road in Ajman continue to pump fuel day and night. Jeff Topping / The National

Enoc stations in north are selling petrol despite ultimatum


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SHARJAH // Ten months after Enoc stopped supplying petrol to its dozens of stations across the Northern Emirates, three of the stations are, somehow, still pumping out petrol.

Bassma Essa, spokeswoman for Enoc Group, was unable to explain the phenomenon.

Of the three stations with the bottomless pumps, two are in Ajman, on a stretch of Emirates Road that links the emirate to Ras Al Khaimah, and one is in Fujairah.

Last June, Enoc shut its operations in Sharjah after failing to comply with a 72-hour ultimatum issued by the Sharjah Executive Council to resume refuelling or close.

That followed a month of problems supplying petrol to the Northern Emirates.

The Enoc group, which also runs Eppco stations, closed pumps, shops, blocked car service bays and removed items for sale, including car lubricants, at petrol stations.

In other emirates such as Ajman, the group continued to sell merchandise but cancelled fuel supplies.

But for drivers filling up at an Enoc station on Emirates Road last week, the dispute was not on their minds - so long as the petrol kept on flowing.

"Business is very busy here," said Saeed Al Bayati. "Many people who take this road from Ras Al Khaimah without enough petrol have to drive a long distance before they can find this station to refuel."

Mrs Essa said Enoc is still in discussions to resume operations throughout the Northern Emirates, but its stations remain closed.

In the meantime, long queues for petrol are a common sight at most Adnoc and Emarat outlets - the only companies supplying petrol to the Northern Emirates.

"For the last two months I did not refuel in Sharjah as my work is in Dubai, but today am surprised to find the long queue at this station," said Lamya Ali a Sharjah resident who stopped at the Emarat station on Al Arouba Road.

Many people avoid the queues by refuelling in Dubai before driving home to Sharjah.

In September, an Enoc executive said the company had sustained billions of dirhams in losses because of the federally mandated cap on fuel prices.

"Yes, we are not pumping fuel today," said Zaid Alqufaidi, Enoc's managing director of marketing. "But once the decision is taken on the pricing, I think it will [start]."

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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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Where: Various locations including National Theatre (Abu Dhabi), Abu Dhabi Cultural Center, Zayed University Promenade, Beach Rotana (Abu Dhabi), Vox Cinemas at Yas Mall, Sharjah Youth Center

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Australia 124 (4) beat UAE 23 (0)
New Zealand 74 (2) beat England 55 (2)

A new relationship with the old country

Treaty of Friendship between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates

The United kingdom of Great Britain and Northern Ireland and the United Arab Emirates; Considering that the United Arab Emirates has assumed full responsibility as a sovereign and independent State; Determined that the long-standing and traditional relations of close friendship and cooperation between their peoples shall continue; Desiring to give expression to this intention in the form of a Treaty Friendship; Have agreed as follows:

ARTICLE 1 The relations between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates shall be governed by a spirit of close friendship. In recognition of this, the Contracting Parties, conscious of their common interest in the peace and stability of the region, shall: (a) consult together on matters of mutual concern in time of need; (b) settle all their disputes by peaceful means in conformity with the provisions of the Charter of the United Nations.

ARTICLE 2 The Contracting Parties shall encourage education, scientific and cultural cooperation between the two States in accordance with arrangements to be agreed. Such arrangements shall cover among other things: (a) the promotion of mutual understanding of their respective cultures, civilisations and languages, the promotion of contacts among professional bodies, universities and cultural institutions; (c) the encouragement of technical, scientific and cultural exchanges.

ARTICLE 3 The Contracting Parties shall maintain the close relationship already existing between them in the field of trade and commerce. Representatives of the Contracting Parties shall meet from time to time to consider means by which such relations can be further developed and strengthened, including the possibility of concluding treaties or agreements on matters of mutual concern.

ARTICLE 4 This Treaty shall enter into force on today’s date and shall remain in force for a period of ten years. Unless twelve months before the expiry of the said period of ten years either Contracting Party shall have given notice to the other of its intention to terminate the Treaty, this Treaty shall remain in force thereafter until the expiry of twelve months from the date on which notice of such intention is given.

IN WITNESS WHEREOF the undersigned have signed this Treaty.

DONE in duplicate at Dubai the second day of December 1971AD, corresponding to the fifteenth day of Shawwal 1391H, in the English and Arabic languages, both texts being equally authoritative.

Signed

Geoffrey Arthur  Sheikh Zayed