ABU DHABI // Friday may mark the start of the weekend, but it is the one day most people regard with dread because of the seemingly futile search for an empty taxi.
This weekend, however, promised to be different. For the first time, taxis had a rival: free, air-conditioned buses.
After a few journeys across town, it was evident that the fleet of turquoise buses was winning the battle for passengers.
And the hordes, it seemed, were a little less mad.
Bus after teeming bus, ferrying hundreds of passengers, lurched into the dozens of new terminals that have appeared across the city. Most were packed to capacity, with people standing and hanging on to safety harnesses as the buses swung round corners.
Taxi drivers, waiting for fares and looking on with envy, muttered about losing passengers and, more importantly, money to public transport.
But most people were appreciative of the buses.
One mall reported its "best ever" business, claiming the buses were bringing in new shoppers who had never ventured there before, reluctant to pay taxi fares.
"Today is more busy than a normal day, maybe the best we have ever had," Dias Antony, the manager of housekeeping at Marina Mall, said as he watched streams of shoppers cut through the taxi queues to board waiting buses.
It was mostly middle-class who shoppers who appeared to be using the buses to get to malls, he said.
"We noticed many more customers coming now because of the buses," he said. "And they are not just the people who have cars or the rich people, so we are very happy to see this."
Mohammed Ounah, a petrol-station worker from Syria, said he opted for the bus after waiting for an hour for a taxi on Muroor Road.
"I wait, I wait, I wait and no taxi is coming. I don't know where [this bus] is going, but it has air-conditioning and someone told me I can ride to Abu Dhabi Mall." Others travelling on the No 54 bus said they were sacrificing the comfort of a taxi for the convenience of the free bus. Sweaty arms competed for handles, but commuters kept things civil, apologising for any rogue feet that trod on neighbours' shoes.
"Be careful - quickly, quickly!" warned Mohammed Khalil, clearing other passengers away from the side entrance as the bus heaved to a stop and the automatic doors swung open.
"These doors are a danger," the student, 19, from Palestine, said.
People were squeezed into any place they could find.
Bakhtrawam Abdul Gafar, the bus driver, estimated he was carrying "90 to maybe 100" passengers at a time. This is despite a maximum capacity of 45 passengers.
Crammed among the anonymous limbs was Aarni Kudtarkar, aged two, who was being carried by her father as the family rode home to Hamdan Street.
"She is very small, but she enjoys travelling," Nilesh Kudtarkar, an accountant from India, said of his daughter's first trip on the bus. "Sometimes we can wait for one hour for a taxi. Today, [the bus] came within five minutes. It's a big difference."
The difference was noticeable near closing time on Friday night at Marina Mall - the only stop shared by all four bus routes.
But while the malls saw more customers, taxis saw fewer.
"Compared with other days, this line is nothing," Mohammed Atta, a taxi driver on a break at Marina Mall, said of the taxi queue. "Normally, this Friday and Saturday is always crowded, but nowadays it is much shorter. Maybe it's because of the buses, but this is also holiday time."
Sameh Elmusry, an Al Ghazal driver from Egypt, pointed to the six empty silver cabs lined up behind him.
"You see many people here for buses, but not taxis," he said. "Before, everyone was taking taxis back from Marina."
Another taxi driver, Farid Shawky, wondered whether the days of people coveting taxis were drawing to an end.
"Before, if there is one taxi here, then you will have 100 people running for that taxi," he said. "Yes, now it is easier to find a taxi. But if everyone goes on the bus and they do not come to us, then this is a problem."
Mr Shawky hoped the popularity of the buses had peaked and that passengers were enticed only by the free fares until the end of the year.
The Department of Transport (DoT) plans to charge fares from the end of the year and to increase the number of routes to 21. Fares have not yet been decided. "Once they begin charging to ride the bus, I want to see many people going back to taxis because they are in a hurry," Mr Shawky said.
The DoT plans to have buses making 2,000 trips a day on 21 routes on the island. By 2010, the department hopes to have 1,360 air-conditioned buses in the emirate.
@Email:mkwong@thenational.ae
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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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Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
Sam Smith
Where: du Arena, Abu Dhabi
When: Saturday November 24
Rating: 4/5
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
The specs
Engine: 2.7-litre 4-cylinder Turbomax
Power: 310hp
Torque: 583Nm
Transmission: 8-speed automatic
Price: From Dh192,500
On sale: Now
SCORES IN BRIEF
New Zealand 153 and 56 for 1 in 22.4 overs at close
Pakistan 227
(Babar 62, Asad 43, Boult 4-54, De Grandhomme 2-30, Patel 2-64)
The specs: 2018 Nissan Patrol Nismo
Price: base / as tested: Dh382,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 428hp @ 5,800rpm
Torque: 560Nm @ 3,600rpm
Fuel economy, combined: 12.7L / 100km
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
ETFs explained
Exhchange traded funds are bought and sold like shares, but operate as index-tracking funds, passively following their chosen indices, such as the S&P 500, FTSE 100 and the FTSE All World, plus a vast range of smaller exchanges and commodities, such as gold, silver, copper sugar, coffee and oil.
ETFs have zero upfront fees and annual charges as low as 0.07 per cent a year, which means you get to keep more of your returns, as actively managed funds can charge as much as 1.5 per cent a year.
There are thousands to choose from, with the five biggest providers BlackRock’s iShares range, Vanguard, State Street Global Advisors SPDR ETFs, Deutsche Bank AWM X-trackers and Invesco PowerShares.
Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.