For Abu Dhabi drivers, the new road toll means higher monthly bills



Abu Dhabi residents have said the introduction of a new road toll will help develop the emirate's roads, but also expressed concerns over the rising costs associated with driving.

On Sunday it was announced that the capital is to bring in a system of road tolls. Although the exact details of how it will be implemented are yet to emerge, one father of three has already said he is now considering moving his family to another emirate to conserve his finances.

Abbas Khairy, 41, a Jordanian travel agent and father of three, said he'd like to see public transport improved before a toll was introduced.

“Dubai has the metro and tram so they have other alternatives if they wish to leave their cars at home and use public transportation to avoid paying tolls and save petrol. Here in Abu Dhabi, we don’t have that option.

“After introducing VAT and the new fuel prices we had to change our lifestyle in order to cover all the expenses. It’s getting harder and harder and salaries are still staying the same,” he said.

Mr Khairy said he is considering sending his family to another emirate to cut expenses.

“I don’t want to send them back to Jordan, but I am thinking of moving them to Ajman or Ras Al Khaimah where there is less traffic, cheaper rents and affordable schools,” said Mr Khairy.

“I will keep my work in Abu Dhabi, stay in a relative’s house and visit them once a week.”

Another resident, Waled Mousa, an Egyptian sales director, 35, said that his monthly commuting cost had already risen significantly and that the new toll will affect him even further.

“I drive to Al Ain four or five times a week in my Mercedes car and it costs around Dh150 to fill the tank. With the continued increase in petrol prices and VAT, I now pay Dh300 to Dh350 extra each month on transportation,” said Mr Mousa, adding that the toll will further affect his finances.

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Read more:

'Salik' traffic tolls coming to Abu Dhabi

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However, some residents said that as long as alternative roads were kept toll-free then the impact of the new move on drivers would be minimal.

Shahin Al Harbi, a banker from Lebanon, 37, said: “[the toll] might be installed on the E10 road and maybe the Corniche. If they provide alternative routes than it should not affect us badly."

He said the Government has the right to seek various sources of income to keep the country at its best and to provide the best services.

“We have great roads and infrastructure that need money for development and everyone should play a role in developing the country."

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Round 2: Beat Naomi Osaka 7-6, 1-6, 7-5
Round 3: Beat Marie Bouzkova 6-4, 6-2
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Quarter-final: Beat Marketa Vondrousova 6-0, 6-2
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Started: 2018

Founders: Roman Axelrod, Valentyn Volkov

Based: Dubai, UAE

Industry: Smart contact lenses, augmented/virtual reality

Funding: $40 million

Investor: Opportunity Venture (Asia)

EMIRATES'S REVISED A350 DEPLOYMENT SCHEDULE

Edinburgh: November 4 (unchanged)

Bahrain: November 15 (from September 15); second daily service from January 1

Kuwait: November 15 (from September 16)

Mumbai: January 1 (from October 27)

Ahmedabad: January 1 (from October 27)

Colombo: January 2 (from January 1)

Muscat: March 1 (from December 1)

Lyon: March 1 (from December 1)

Bologna: March 1 (from December 1)

Source: Emirates

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Company name: Hoopla
Date started: March 2023
Founder: Jacqueline Perrottet
Based: Dubai
Number of staff: 10
Investment stage: Pre-seed
Investment required: $500,000

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• Looming global slowdown and recession in key economies

• Russia-Ukraine war

• Interest rate hikes and the rising cost of debt servicing

• Oil price volatility

• Persisting inflationary pressures

• Exchange rate fluctuations

• Shortage of labour/skills

• A resurgence of Covid?

Company Profile

Name: Direct Debit System
Started: Sept 2017
Based: UAE with a subsidiary in the UK
Industry: FinTech
Funding: Undisclosed
Investors: Elaine Jones
Number of employees: 8

Herc's Adventures

Developer: Big Ape Productions
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Console: PlayStation 1 & 5, Sega Saturn
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Fuel consumption: 11.12L/100km

Price: From Dh796,600

On sale: now

MATCH INFO

What: 2006 World Cup quarter-final
When: July 1
Where: Gelsenkirchen Stadium, Gelsenkirchen, Germany

Result:
England 0 Portugal 0
(Portugal win 3-1 on penalties)

A QUIET PLACE

Starring: Lupita Nyong'o, Joseph Quinn, Djimon Hounsou

Director: Michael Sarnoski

Rating: 4/5

COMPANY PROFILE

Company name: Klipit

Started: 2022

Founders: Venkat Reddy, Mohammed Al Bulooki, Bilal Merchant, Asif Ahmed, Ovais Merchant

Based: Dubai, UAE

Industry: Digital receipts, finance, blockchain

Funding: $4 million

Investors: Privately/self-funded

Results

Stage 2:
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2. EF Education – EasyPost - 1"
3. Ineos Grenadiers - 3"
General classification:
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2. Remco Evenepoel (BEL) Soudal–Quick-Step - ST
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Winner: RB Sarab, Allaia Tiar (jockey), Khalifa Al Neyadi (trainer)

5.30pm: Mamsha Alkhair – Handicap (PA) Dh80,000 (T) 1,600m
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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.”

TWISTERS

Director: Lee Isaac Chung

Starring: Glenn Powell, Daisy Edgar-Jones, Anthony Ramos

Rating: 2.5/5

COMPANY PROFILE

Company name: Almouneer
Started: 2017
Founders: Dr Noha Khater and Rania Kadry
Based: Egypt
Number of staff: 120
Investment: Bootstrapped, with support from Insead and Egyptian government, seed round of
$3.6 million led by Global Ventures


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