Sharjah launches inquiry into fire



SHARJAH // An investigation is to be held into the inferno at the Emirates Refinery Company (ERCO) that closed Port Khalid at the weekend. Ships resumed loading and unloading yesterday at the UAE'S largest port, although the ERCO plant was still cordoned off by police, and employees there had not resumed work. Rashid al Leem, the director general of Port Khalid, said a committee comprising police, civil defence, port officials, Sharjah Municipality and Ministry of the Interior officials would investigate the cause of the fire and report within a few days.

Plumes of black smoke billowed above the port after the fire broke out in the cooking-oil storage depot in the early hours of Saturday. Firemen prevented the flames from spreading to 50 oil storage facilities nearby. Initial estimates were that the cost of damage could run to Dh7 billion (US$1.9bn). Two workers who received minor burns were being treated in Sharjah's Kuwait hospital, but one was expected to be discharged today and the other later in the week.

Mr Leem said 45 companies operated within the port and each followed safety regulations fully and regularly faced civil defence inspections. "Since the inception of the Port Khalid, only two fire accidents have happened," Mr Leem said. "This is a small number compared to other industrial areas with oil industries. We do regret that the fires here have been big cases." A spokesman for IFFCO, the foodstuffs company that operates the refinery, said: "The fire has been completely put out and the site is being doused with high-pressure water as a precautionary measure." He said police still occupied the site but that the company hoped to be granted access today to begin damage assessment.

Brig Humaid al Hudaid, director general of Sharjah Police, said that only after a police report has been issued would the responsible authorities, including insurance, assess the damages and compensation. "We're very grateful to all the firefighting establishments that joined us to put off the fire. More than 50 from all the emirates responded to our call in time and helped to halt the fire." The weekend's second major fire, in an Abu Dhabi apartment block on Electra Street, was blamed on the building's dilapidated condition.

Forty-two people were taken to hospital after the fire, including eight firemen, although injuries were restricted to minor burns and smoke inhalation. Five people were reported to have been rescued from the rooftop by helicopters, while firemen using an extendable ladder plucked others from an eighth-floor balcony. Lt Col Mohammed al Nuaimi, head of the technical rescue and quick intervention department, said: "The owner of the building or his representatives should have carried out mandatory upgrades to the building's fire alarms and extinguishing system to keep in line with fire safety standards, but had failed to do so."

It is unclear whether those responsible will be prosecuted. The nine-storey building housed dozens of single men as well as families. It was the second Abu Dhabi rooftop airlift within a week. Last Tuesday, the Fathima Supermarket building on Airport Road caught fire. The cause was initially reported to be a faulty air-conditioning unit. ykakande@thenational.ae ealghalib@thenational.ae

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At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

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Libya's Gold

UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves. 

The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.

Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.

A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

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Wales v Hungary

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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.”