Abu Dhabi is to begin piloting fully electric buses with a view to rolling them out across its transport network late next year.
The green buses will be introduced gradually, but will eventually replace all diesel and other polluting vehicles of their kind, including school buses.
The companies behind the project said there are also plans to trial electric cars, vans and lorries.
The battery technology for the vehicles has been successfully tested in the UAE, coping with the challenges posed by the country’s extreme summer heat.
The new buses, which have been fitted with Abu Dhabi number plates and are ready to go, were displayed at a launch event in the capital on Wednesday.
The scheme is being run by a tie-up between Emirates Global Motor Electric, which is part of Al Fahim Group, Hitachi Energy, an expert in power grids, and battery manufacturer Yinlong Energy.
School transport to lead the way
Abby Thomas, the director of sales and marketing at Yinlong, said the decision over when and where to run the trial will be made by authorities.
But school buses could be first.
“That is the prime objective, because of the emissions,” he said.
“I think schools are important, because at the end of the day these kids are breathing in these fumes.”
The bus batteries can be fully charged in less than 20 minutes, said Mr Thomas.
“We have already completed two years of testing. Now we are getting into the roll-in phase of how we can talk to different operators in different regions.
“Our charging stations are already installed in the Department of Transport.
“We want to make sure we are ready for Cop28, and expanding the range into commercial trucks and vans,” he added.
Hany Tawfik, the head of Emirates Global Motor Electric and Emirates Global Industries, said they will be able to run fleets comprising hundreds of buses with its compact, fast and extensive charging network.
“We are proud to say these buses will be rolled out in the UAE next year,” he added.
The companies have designed smaller buses for schools and airport shuttles.
Bilal Alribi, general manager of Al Fahim Commercial Vehicles, said the smart charging system would allow the company to maximise its operations.
“E-mobility is the future of transportation and we feel privileged to be part of this journey towards a more sustainable future.”
UAE leading sustainability drive
Last month, Dubai announced it was to launch its own trial of two electric buses.
The Volvo 7900 vehicles will operate on designated paths in both directions between La Mer South, King Salman bin Abdul Aziz Street and Al Sufouh tram station.
The Roads and Transport Authority joined forces with Volvo Bus Company, Dubai Electricity and Water Authority, Meraas Real Estate, and ABB Group - a leader in the electric bus charging industry - for the eco-friendly initiative.
"The step reflects RTA’s efforts to provide sustainable and environmentally friendly mass transit means," Dubai Media Office said.
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.”
The bio
Date of Birth: April 25, 1993
Place of Birth: Dubai, UAE
Marital Status: Single
School: Al Sufouh in Jumeirah, Dubai
University: Emirates Airline National Cadet Programme and Hamdan University
Job Title: Pilot, First Officer
Number of hours flying in a Boeing 777: 1,200
Number of flights: Approximately 300
Hobbies: Exercising
Nicest destination: Milan, New Zealand, Seattle for shopping
Least nice destination: Kabul, but someone has to do it. It’s not scary but at least you can tick the box that you’ve been
Favourite place to visit: Dubai, there’s no place like home
