Two earthquakes struck the northern Arabian Gulf on Sunday.
The first, measuring 4.7, occurred at a depth of 10km off the coast of Bushehr in Iran at 6.49am.
A second, with a magnitude of 5, struck the same area and depth at 8.25am.
There was no impact on the UAE, said Khamis Al Shamsi, director of the National Centre of Meteorology’s Seismology department.
You do not see too many in the sea, maybe two to five per year
Khamis Al Shamsi,
National Centre of Meteorology
The Bushehr Nuclear Power Plant, Iran’s first commercial nuclear reactor, is located on the coast nearby.
Iran is one of the world’s most seismically active countries. Most of its earthquakes occur on land.
There are only a handful of quakes in the waters of the Arabian Gulf each year.
“You do not see too many in the sea, maybe two to five per year,” said Mr Al Shamsi.
“An earthquake of that magnitude would not cause a tsunami. These quakes are not very strong [in comparison to the one in Tonga, which was 7.4 magnitude]. They are moderate.
“Also the Arabian Gulf is shallow, compared with the Pacific and Atlantic.”
For that reason, it is unlikely there would ever be a tsunami in the Arabian Gulf, said Mr Al Shamsi.
But it did happen in the Arabian Sea in 1945, due to a strong earthquake off Pakistan with a 8.1 magnitude.
A resulting tsunami was recorded in Oman and even Seychelles, 3,400km away.
An earthquake with a 6.3 magnitude struck Bushehr province in 2013. At least 37 people were killed and 850 were injured. It was felt in many countries in the region, including the UAE.
Iran regularly suffers destructive quakes, which are occasionally felt in the UAE.
Since 1900, at least 126,000 people have died in Iran as a result of earthquakes.
Tonga tsunami: in pictures
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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Off-roading in the UAE: How to checklist
How to vote
Canadians living in the UAE can register to vote online and be added to the International Register of Electors.
They'll then be sent a special ballot voting kit by mail either to their address, the Consulate General of Canada to the UAE in Dubai or The Embassy of Canada in Abu Dhabi
Registered voters mark the ballot with their choice and must send it back by 6pm Eastern time on October 21 (2am next Friday)
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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