A fire engulfs a shop in the Al Quoz Industrial 3 area of Dubai last September. Civil Defence officers say periodic inspection of facilities has resulted in a reduction in the numbers of industrial fires. Jeffrey E Biteng / The National
A fire engulfs a shop in the Al Quoz Industrial 3 area of Dubai last September. Civil Defence officers say periodic inspection of facilities has resulted in a reduction in the numbers of industrial fires. Jeffrey E Biteng / The National
A fire engulfs a shop in the Al Quoz Industrial 3 area of Dubai last September. Civil Defence officers say periodic inspection of facilities has resulted in a reduction in the numbers of industrial fires. Jeffrey E Biteng / The National
A fire engulfs a shop in the Al Quoz Industrial 3 area of Dubai last September. Civil Defence officers say periodic inspection of facilities has resulted in a reduction in the numbers of industrial fi

Industrial zone fires fall slightly in Dubai


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DUBAI // Major General Rashed Al Matrooshi, director general of Dubai’s Civil Defence, said the number of fires so far in industrial zones are similar to the year before.

There were 50 fires in the first quarter of 2014, and 52 in 2013. All fires in 2014 were small. However, last year there were three big and three medium fires.

He said 89 facilities and buildings in Dubai had breached Civil Defence safety codes the past 18 months, according to Al Ittihad, The National's Arabic-language sister newspaper.

Maj Gen Al Matrooshi said inspection teams carried out 1,137 inspection visits and awareness campaigns in that time, correcting breaches in 71 cases, and completing prevention or safety installations in 89.

Warehouse offences usually related to random storage whereas other buildings lacked maintenance and periodic inspection of fire safety equipment and systems. As for new buildings, inspection teams registered breaches such as incomplete readiness of fire extinguishing and alarm systems.

Maj Gen Al Matrooshi said that inspection teams played an essential role in uncovering offences that could lead to incidents, and 14 specialised preventive inspection teams continued to monitor day-to-day offences that threatened safety.

He said a single facility or building could be fined for multiple breaches during a single inspection visit.

Buildings and facilities that failed to implement fire safety requirements faced a penalty of Dh500 per month until the problem was solved. After three months, the facility would be closed down.

In high-risk cases, a facility may be shut down immediately, and Article 11 of the Cabinet Decision stipulates that “upon exhausting all methods specific to the removal of a violation/ offence, the decision to close down the violating establishment will be issued and shall be valid until the removal of the violation or its causes”.

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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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Top New Zealand cop on policing the virtual world

New Zealand police began closer scrutiny of social media and online communities after the attacks on two mosques in March, the country's top officer said.

The killing of 51 people in Christchurch and wounding of more than 40 others shocked the world. Brenton Tarrant, a suspected white supremacist, was accused of the killings. His trial is ongoing and he denies the charges.

Mike Bush, commissioner of New Zealand Police, said officers looked closely at how they monitored social media in the wake of the tragedy to see if lessons could be learned.

“We decided that it was fit for purpose but we need to deepen it in terms of community relationships, extending them not only with the traditional community but the virtual one as well," he told The National.

"We want to get ahead of attacks like we suffered in New Zealand so we have to challenge ourselves to be better."

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