Seventeen cars were destroyed by angry workers after one of their colleagues fell to his death from a building under construction. Wam
Seventeen cars were destroyed by angry workers after one of their colleagues fell to his death from a building under construction. Wam

Labourers back at work after Ras Al Khaimah riot



RAS AL KHAIMAH // Work has resumed on a construction site where labourers staged a violent protest after the apparent suicide of one of their colleagues.

On Saturday, labourers at Emirates National School building site destroyed 17 cars and set fire to offices and fuel tanks after a man fell to his death from the fifth floor of the building.

Police made several arrests. A spokesman said: “Currently everything that we have that is related to the strike and the case, we handed over to the public prosecution office of Ras Al Khaimah.

“The investigation is ongoing and they are taking it from there. Our job was to quell the strike and handle the situation. Their job is to investigate and prosecute.”

The labourers are employed by Ghantoot Transport and General Contracting, a private company in Abu Dhabi.

Abdul Jabbar, head of human resources at the company, said: “The worker who died is from India and he would have some tension and family dispute which could have led to losing the focus and falling down.

“A large number of our workers are working there. Unfortunately, he fell from the fifth floor despite all safety measures in place.”

Mr Jabbar said that “you can’t fight destiny”, and if “Allah has written something for you, that would have to happen and nobody can prevent it. Despite all safety measures in place on site, it happened”.

“However, we are going to compensate the victim’s family for their loss. The insurance company will pay to the family and would extend all support for the victim’s family. All our employees are fully insured,” Mr Jabbar said.

The Indian consulate in Dubai is working with the contracting company to ensure the victim’s family receive their rights. Deputy consul general K Muraleedharan said: “The consulate is in talks with the company to … repatriate his body to India.”

The Ministry of Labour declined to comment.

Residents in the area said they were still in shock after the incident. “It’s a quiet area of town. Things like this do not happen here and definitely not to this extent – 17 cars were torched,” said Shamma K, 42, a mother of three.

“Can you imagine the flames? It was a scary sight to see. The sky was orange in the evening. There was fear that they might move and destroy things door-to-door. I locked myself and children in.”

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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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