Abu Dhabi Municipality unveils its vision for a world class souk that will help transform the city by enhancing its rich cultural heritage for both the local community as well as international visitors. Courtesy Abu Dhabi Municipality
Abu Dhabi Municipality unveils its vision for a world class souk that will help transform the city by enhancing its rich cultural heritage for both the local community as well as international visitors. Courtesy Abu Dhabi Municipality
Abu Dhabi Municipality unveils its vision for a world class souk that will help transform the city by enhancing its rich cultural heritage for both the local community as well as international visitors. Courtesy Abu Dhabi Municipality
Abu Dhabi Municipality unveils its vision for a world class souk that will help transform the city by enhancing its rich cultural heritage for both the local community as well as international visitor

‘World-class’ souq to be built in Abu Dhabi


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ABU DHABI // Plans for a "world class" souq that will enhance the city's cultural heritage were announced yesterday.

The venue will help transform the city and appeal to citizens, residents and visitors, Abu Dhabi Municipality said as it unveiled its vision for the project.

The traditional souq would be built between the Sheikh Zayed and Al Maqtaa bridges.

The project would also link to Khalifa Park and Sheikh Zayed Mosque - two of Abu Dhabi's biggest attractions, a statement said.

The 150,000-square-metre venue will include a modern waterfront, a traditional retail souq, food, entertainment and leisure outlets, and an open-air performance space.

It is one of a number of community-led investments and developments launched by the municipality's investment office as part of a plan to improve amenities for residents and tourism offerings.

"This is in support of the Abu Dhabi Government's vision to make the nation's capital an attractive place to live, work and visit by building a safe, secure and sustainable society," a statement said.

"The municipality will act as a catalyst for building a prosperous future for the city and its people.

"The community-centric municipal projects will be delivered through integration with the private sector to ensure best-in-class standards and efficient services."

The souq is one of a number of development and investment projects that will be built through public-private partnerships.

Last month, The National reported a Dh3 billion plan to build 40 community centres around Abu Dhabi with private investment.

Officials said no public funding would be allocated and the centres would be built on a build-operate-transfer model. Work is expected to begin this year on 20 centres.

The municipality said it would soon invite tenders from developers for the souq and four community centres.

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Cheat’s nigiri 
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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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