• An artist's impression of air taxis over the Dubai skyline. All photos: Dubai Government Media Office
    An artist's impression of air taxis over the Dubai skyline. All photos: Dubai Government Media Office
  • The RTA, Joby Aviation and Skyports give attendees at the government summit a glimpse of what their flying taxis will look like. Antonie Robertson / The National
    The RTA, Joby Aviation and Skyports give attendees at the government summit a glimpse of what their flying taxis will look like. Antonie Robertson / The National
  • Designs for 'vertiports' — air taxi stations — have been approved by the Dubai government
    Designs for 'vertiports' — air taxi stations — have been approved by the Dubai government
  • Ahmed Bahrozyan, head of the Public Transport Agency at Dubai's Roads and Transport Authority. Antonie Robertson / The National
    Ahmed Bahrozyan, head of the Public Transport Agency at Dubai's Roads and Transport Authority. Antonie Robertson / The National
  • There would be four skyports in Dubai, including this one linked to a Dubai metro station. Antonie Robertson/The National
    There would be four skyports in Dubai, including this one linked to a Dubai metro station. Antonie Robertson/The National
  • Air taxis will begin flying in the emirate within three years
    Air taxis will begin flying in the emirate within three years
  • Many companies are already looking to make vertical take-off and landing vehicles a part of daily life
    Many companies are already looking to make vertical take-off and landing vehicles a part of daily life
  • Dubai is set to become the world's first city with a fully developed network of vertiports
    Dubai is set to become the world's first city with a fully developed network of vertiports
  • The emirate has been working with Skyports Infrastructure and Joby Aviation to develop the infrastructure
    The emirate has been working with Skyports Infrastructure and Joby Aviation to develop the infrastructure
  • Each aircraft will carry a pilot and up to four passengers, with a range of 241km and a top speed of 300kph
    Each aircraft will carry a pilot and up to four passengers, with a range of 241km and a top speed of 300kph

Dubai Ruler says flying taxis will be in city's skies within three years


Patrick Ryan
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Read: Flying taxi model on display at World Government Summit

Air taxis will begin flying in Dubai within three years, says Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai.

Sheikh Mohammed made the announcement on Twitter, where he revealed he had approved designs for air taxi stations at the World Government Summit in Dubai this week.

“From the World Government Summit, we approved today the design of the new air taxi stations in Dubai, which will start operating within three years,” Sheikh Mohammed tweeted.

A video accompanying the tweet says: “RTA has been working with advanced air mobility companies Skyports Infrastructure and Joby Aviation to design and develop the infrastructure for an expected launch of electric vertical take-off and landing (eVTOL) operations by 2026.”

It says Dubai is set to become the world's first city with a fully developed network of vertiports. The initial launch will connect four main areas: near Dubai International Airport, Downtown Dubai, Palm Jumeirah and Dubai Marina.

It says the “safe and efficient” aircraft will offer passengers a “smooth end-to-end passenger journey” with zero operating emissions. Each aircraft will accommodate a pilot and four passengers, with a 241km range and a 300kph top speed.

The prospect of flying cars in Dubai is one that has been mooted before.

Chinese firm XPeng Aeroht showed off its two-seater electric VTOL flying car in a demonstration in Dubai last October.

A crowd at Skydive Dubai watched the unmanned vehicle rise into the air, with the company’s head of aviation affairs, Dr Liu Xinying, claiming viable flying vehicles in urban environments could be a reality sooner rather than later.

“The company is working on a sixth generation of a flying car that can take off and land vertically, with autonomous flight path planning,” he said at the time.

“It is scheduled to be mass produced and delivered in 2024.”

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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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