As a company supplying materials for some of the most eye-catching construction projects, Dubai’s Premier Composite Technologies is winning global acclaim.
Its hundreds of staff, however, are facing hardship as wages continue to go unpaid just months after a previous financial crisis was seemingly resolved.
The company, based in Dubai Investments Park, won widespread praise for its role in the construction of Apple’s new flagship headquarters in California, helping supply materials for the building’s 80-tonne space-age roof.
It also supplied materials for the solar-powered wing-doors on Apple’s Dubai Mall store.
A logistics supervisor organising transportation at PCT has been forced to send his family home as he can no longer afford to support them in Abu Dhabi due to unpaid wages.
“I can’t leave the country unless I have a certain amount of cash, and I know a lot of other employees are in the same situation and suffering a lot,” said SD.
“I have a credit card to repay and have asked for a letter from the finance department to show there are problems, otherwise I’ll be in trouble with police.
“I’m getting calls from banks asking for money. I have asked the HR department to help but they don’t know when the cash flow issues will be resolved.”
SD said he has been paid up to April but is still owed over two months’ salary, about Dh35,000.
“We’ve not had an email to explain what the delay is, or when we will be paid. There are more than 1,400 people in the same position as me,” said SD, who lives in company accommodation.
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PCT has completed contracts on several high-profile projects in recent months, in contrast to much of the construction sector in the UAE and Saudi Arabia, which has shrunk by about US$17 billion last year, according to project management firm Faithful+Gould.
It worked on 250 giant umbrellas in Medina to shade pilgrims attending Hajj in summer and panels for the spectacular concourse at Saudi Arabia’s high-speed rail link, also in Medina.
Other projects have been completed in Angola, on a new assembly hall, and a dome housing a huge telescope in Turkmenistan.
With those projects now in the bag, the hundreds of employees owed wages are puzzled as to why their salaries are yet to be paid.
A logistics supervisor at PCT said he is owed more than Dh20,000 and has had to ask his family for a loan to help pay his rent as he struggles to make ends meet.
“The company has developed a good name for itself and comes across publicly as a stable firm but, internally, it is messed up,” he said.
“No one knows where the money is going to. There are not even materials to build boats but we are still taking on big projects.
“Because it has been going on for nearly two years now, morale is pretty low. We are still getting pushed to finish stuff, even though we are not getting paid.”
Another worker who is owed more than Dh40,000 said staff have been looking for other jobs but fear losing the chance to recover their outstanding salaries if they leave.
“I don’t know how long we can manage for, many of us are looking for new jobs but it is not easy,” he said.
“We’ve been working for free. I received mail from the bank demanding payment, otherwise they will open a case.
“There is a risk of a travel ban, then we can’t do anything. Everyone is owed money.”
PCT was hit by a similar cashflow crisis in January, with hundreds of workers owed wages.
Managing director Hannes Waimer emailed staff to reassure workers earning less than Dh5,000 a month that they would be offered Dh200 for food, and he blamed the cash crisis on unpaid contracts in Saudi Arabia.
In his staff email, Mr Waimer reassured staff that new contracts were in the offing that would resolve the company’s financial woes. However, five months on and the financial problems have resurfaced.
In an interview in January, Mr Waimer said: “In the last year Saudi Arabia has had problems paying its dues to contractors. I have some issues but the company is still profitable and has a good workload.
“We are taking this extremely seriously as employees are assets. We are doing all we can to support the staff by doing regular payments from a hardship fund to labourers.”
PCT did not respond to several requests for comment.
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Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Coffee: black death or elixir of life?
It is among the greatest health debates of our time; splashed across newspapers with contradicting headlines - is coffee good for you or not?
Depending on what you read, it is either a cancer-causing, sleep-depriving, stomach ulcer-inducing black death or the secret to long life, cutting the chance of stroke, diabetes and cancer.
The latest research - a study of 8,412 people across the UK who each underwent an MRI heart scan - is intended to put to bed (caffeine allowing) conflicting reports of the pros and cons of consumption.
The study, funded by the British Heart Foundation, contradicted previous findings that it stiffens arteries, putting pressure on the heart and increasing the likelihood of a heart attack or stroke, leading to warnings to cut down.
Numerous studies have recognised the benefits of coffee in cutting oral and esophageal cancer, the risk of a stroke and cirrhosis of the liver.
The benefits are often linked to biologically active compounds including caffeine, flavonoids, lignans, and other polyphenols, which benefit the body. These and othetr coffee compounds regulate genes involved in DNA repair, have anti-inflammatory properties and are associated with lower risk of insulin resistance, which is linked to type-2 diabetes.
But as doctors warn, too much of anything is inadvisable. The British Heart Foundation found the heaviest coffee drinkers in the study were most likely to be men who smoked and drank alcohol regularly.
Excessive amounts of coffee also unsettle the stomach causing or contributing to stomach ulcers. It also stains the teeth over time, hampers absorption of minerals and vitamins like zinc and iron.
It also raises blood pressure, which is largely problematic for people with existing conditions.
So the heaviest drinkers of the black stuff - some in the study had up to 25 cups per day - may want to rein it in.
Rory Reynolds
HAJJAN
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The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
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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.”