Illegal taxis becoming option of choice in Sharjah



SHARJAH // Illegal taxis are thriving in Sharjah after higher fares in licensed cabs caused a sharp rise in demand for cheaper alternatives.

Private drivers offer fares to Dubai for as little as Dh10 compared to the Dh60 routinely charged in franchised taxis, where meters start at Dh20, and a Dh10 minimum fare operates for trips within Sharjah.

“My monthly salary is Dh2,500 and if I am to use a taxi to go to Dubai for work every day I will need to spend Dh3,000,” said Mustafa Rafee, who works as a salesman in Dubai. Finding an illegal taxi is not difficult for those who want one. Popular pick-up spots include Al Wahda Road opposite the Sharjah City Centre and behind Rolla Square, according to passengers.

“I spend about 10 minutes in the morning looking for a private car to drop me in Dubai,” said Mr Rafee. “Some cars ask for Dh15, but with good bargaining you can find one at a lesser cost.”

Police know where to find them as well. Clampdowns have become common on Al Wahda Road. Officials from the Sharjah Transportation Corporation (STC), which holds the emirate’s taxi franchise, and plain clothes police often stop private cars to check passengers’ identities, particularly vehicles carrying several people.

Those found to be carrying paying passengers are fined by the STC, a police spokesman said. The fine a first offence can be Dh5,000.

"It is part of our routine to work with Sharjah Transport to find illegal taxis wherever they are," he said.
"Sharjah Transport officials identify the areas they want to [work] with police and we abide. Our role is only when some drivers are stubborn and do not stop."

Vans carrying workers are also liable to be fined in the absence of a company logo on the vehicle.

“We were stopped opposite the Sunrise Supermarket and eight of my passengers showed their company IDs,” said Mohammed Bu Ayyad, a driver for a Dubai-based company. “Two were new and had not got the IDs yet and the police said we should pay the fine. That day our van was in a garage and we had used a rented van and nothing could convince them otherwise.”

The STC takes all violations seriously as they infringe upon the rights of franchised taxi companies, said Mohammed Abdullah al Buraimi, the director of the corporation’s violations department. The company employed a team of inspectors working throughout the emirate as part of its clampdown, he said.

The illegal taxis are also hurting franchised taxi drivers whose profits have already been hit by the recently imposed STC charge on petrol.

"We have two big competitors now – public buses and taxi poachers," said Mujib Khan, a driver with Citi Taxi.
"We have to pay a new fuel surcharge of 0.52 fils each kilometre and make a high income target for our bosses. This is not good."

Mr Khan appealed to authorities to arrest illegal taxi drivers, saying only prison could be deterrent enough for the crime.
However, one illegal cabbie said he was just trying to get by, after becoming  unemployed eight months ago.

"I am a qualified accountant and am still looking for a job," he said. "Once I get a job, there is no reason I should continue doing this restless work and hiding from the police."

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if you go

Getting there

Etihad (Etihad.com), Emirates (emirates.com) and Air France (www.airfrance.com) fly to Paris’ Charles de Gaulle Airport, from Abu Dhabi and Dubai respectively. Return flights cost from around Dh3,785. It takes about 40 minutes to get from Paris to Compiègne by train, with return tickets costing €19. The Glade of the Armistice is 6.6km east of the railway station.

Staying there

On a handsome, tree-lined street near the Chateau’s park, La Parenthèse du Rond Royal (laparenthesedurondroyal.com) offers spacious b&b accommodation with thoughtful design touches. Lots of natural woods, old fashioned travelling trunks as decoration and multi-nozzle showers are part of the look, while there are free bikes for those who want to cycle to the glade. Prices start at €120 a night.

More information: musee-armistice-14-18.fr ; compiegne-tourisme.fr; uk.france.fr

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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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Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

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Most memorable achievement: Leading my first city-wide charity campaign in Toronto holds a special place in my heart. It was for Amnesty International’s Stop Violence Against Women program and showed me the power of how communities can come together in the smallest ways to have such wide impact.

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Favourite food: Dim sum

Favourite place to travel to: Anywhere with natural beauty, wildlife and awe-inspiring sunsets.

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  2. Kings School Al Barsha (Dubai) – Dh71,905
  3. Brighton College Abu Dhabi - Dh68,560
  4. Jumeirah English Speaking School (Dubai) – Dh59,728
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*Annual tuition fees covering the 2024/2025 academic year

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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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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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