A police officer directs motorists at 30th and 19th Streets during last night's traffic chaos.
A police officer directs motorists at 30th and 19th Streets during last night's traffic chaos.
A police officer directs motorists at 30th and 19th Streets during last night's traffic chaos.
A police officer directs motorists at 30th and 19th Streets during last night's traffic chaos.

Gridlock as construction closes busy city road


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ABU DHABI // Construction on one of the city's busiest thoroughfares led to a traffic block that drivers said was several kilometres long last night. A small section of Al Khaleej al Arabi Street, one of the three largest roads off Abu Dhabi island, was closed for 12 hours yesterday so work could be completed. Motorists said that just after 6pm there had been queues of several kilometres, reaching well onto Abu Dhabi island on the southbound lanes. Some motorists were stuck in traffic near Al Saada Street for more than 45 minutes, with cars diverted away towards Airport Road, which was also busy.

Col Hussein al Harithi, the head of the Abu Dhabi Police traffic engineering department, said the closure had been unavoidable as a pedestrian bridge was being built near the Abu Dhabi National Exhibition Centre. "It was necessary to shut down the Al Khaleej al Arabi motorway in both directions, between Al Saada Street and the Shariah Court Bridge, due to the construction works on going there throughout the night," Col al Harithi said.

He said traffic patrols had been sent there just before 5pm to close the road and divert traffic, and that the motorway was due to be reopened at 5am today. Despite the increased patrols, motorists met severe delays, some of which were caused by drivers entering intersections before they were clear, blocking oncoming traffic. Red-light cameras at many intersections were flashing constantly as drivers tried to move clear of the intersection. Many motorists flashed their lights and honked their horns in frustration.

On the radio, announcers from both English and Arabic stations were warning motorists to avoid the area, suggesting they travel up Muroor Road, Airport Road or Al Salam Street. Police along the motorway struggled at times to keep order as drivers' tempers boiled over. At 19th and 30th, cars were stopped bumper to bumper in the middle of the intersection after the lights had changed from green to red.

But drivers approaching from the opposite direction drove straight into the queue of waiting traffic, and tried to drive through the smallest gaps. At one point, a cement mixer tried to squeeze past a Ferrari 430, although no damage was done. Adel Anwar, a 23-year-old student who was driving to the airport to pick up his sister said he had been waiting in traffic for 25 minutes. "All the way from Abu Dhabi, there is nothing, nothing to say there are problems," Mr Anwar said. "I reach here and suddenly there are cars. There is no warning and I am now going to be late. Why can't the police tell us? We just drive straight into traffic here."

The opposite lanes on Al Khaleej al Arabi street were closed for 15 hours last week for the first section of the overpass to be built. More delays are expected on the road over the next two months, with roads closed and diversions in place in the weeks leading up to the International Defence Exhibition on Feb 22, to allow advertising and exhibits to be erected. Until March 22, traffic heading towards Abu Dhabi will be diverted on to the other side of the road, which will be divided into two lanes.

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Tonight’s Chat host Ricardo Karam is a renowned author and broadcaster who has previously interviewed Bill Gates, Carlos Ghosn, Andre Agassi and the late Zaha Hadid, among others.

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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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