Passengers take photos from on board the first train of the day on the Dubai Metro.
Passengers take photos from on board the first train of the day on the Dubai Metro.
Passengers take photos from on board the first train of the day on the Dubai Metro.
Passengers take photos from on board the first train of the day on the Dubai Metro.

It's a success (with a few glitches)


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DUBAI // Although ticket queues were long, some trains broke down and general confusion often reigned, the public launch of the Metro yesterday was deemed by international rail experts to be a success. "It is usual to have those types of problems, and you've got to be gentle with the system for a few days if not weeks," said Christian Wolmar, a British raily historian, author and broadcaster. "It is pretty standard, and using new technology with driverless trains, it is bound to have a few teething problems."

As the Red Line opened to the public, thousands of people put trains and stations to the test, especially at Mall of the Emirates, where long queues formed at the end of the day. Hundreds of people continued to line up at the station, crowding on to each train as it came, as the 11pm closing time approached. The Roads and Transport Authority had been saying, up until two weeks before the launch, that there would be a train every three to four minutes during peak hours, and that 29 stations would be open and ready for business by Wednesday.

Instead, on opening day there was one train every 10 minutes, and only 10 of the stations were open. At one point yesterday, a train bound for Nakheel Harbour and Tower station stopped at the Mall of the Emirates station, and passengers had to change trains to continue their journey. Delay announcements became the norm as crowds grew bigger throughout the day. A spokesman for Serco, the Metro's operators, said signalling problems caused the initial delays. Later in the day, the company could not be reached for comment to elaborate on additional glitches.

Because of the sheer scale and ambitious nature of the project, experts said, such problems were to be expected. "I think to ask for it to work seamlessly from day one is a big ask," said Philip Sutton, editor of Rail Express, a UK-based specialist magazine. "For a system that size, going live sounds like a tremendous achievement, and if that is the level of problems they had on the first day, I think that could be easily described as a success."

"What you've got to bear in mind is you can't expect things of that complexity to work off the bat. The first day is always going to hit problems that haven't occurred previously, and the big factor you can't plan for is human interaction." The technical complexities of launching the Dh28 billion (US$7.6bn) driverless Metro, according to Mr Sutton, were immense. Problems on lines can be expected on new metro systems, he said, even if they are tested regularly up to the launch. Serco was right to phase in 10 of the 29 stations, he said, as well as reduce the frequency of trains.

"We've had loads of glitches in the tram systems over here," he said. "I think you've got to be realistic. If you buy a new car, you would not expect to jump in it and drive around the world. You have to run it in. The staff have to become familiar with the systems and the ticketing operations." Even after the trial runs and testing programmes, Mr Sutton said, there would still be problems. "You can make the silliest of mistakes, like signage," he said. "If it's not obvious, you can send all the people to the wrong platform, and it could be the fact a sign is a couple of metres out."

Yesterday's passengers seemed to take it all in their stride. "It's bound to have these problems," said Afif Diab, an employee of Emirates Islamic Bank, from Abu Dhabi. "Everything ran smoothly. The tickets were a bit confusing, but everything else is fine." Rajah Keach, an accountant based in Bur Dubai, said he waited at Mall of the Emirates station for nearly an hour to get to the train yesterday afternoon.

"I first had to queue for a ticket, which took about 45 minutes because there were so many people," he said. "It is the first day, and like everybody else I am testing it out. I just hope it is not like this all the time." The Metro will not open today until 2pm, but it will resume regular hours tomorrow at 6am. eharnan@thenational.ae

The specs

Engine: 5.0-litre supercharged V8

Transmission: Eight-speed auto

Power: 575bhp

Torque: 700Nm

Price: Dh554,000

On sale: now

One-off T20 International: UAE v Australia

When: Monday, October 22, 2pm start

Where: Abu Dhabi Cricket, Oval 1

Tickets: Admission is free

Australia squad: Aaron Finch (captain), Mitch Marsh, Alex Carey, Ashton Agar, Nathan Coulter-Nile, Chris Lynn, Nathan Lyon, Glenn Maxwell, Ben McDermott, Darcy Short, Billy Stanlake, Mitchell Starc, Andrew Tye, Adam Zampa, Peter Siddle

COMPANY%20PROFILE
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White hydrogen: Naturally occurring hydrogenChromite: Hard, metallic mineral containing iron oxide and chromium oxideUltramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica contentOphiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on landOlivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour

Company profile

Name: Steppi

Founders: Joe Franklin and Milos Savic

Launched: February 2020

Size: 10,000 users by the end of July and a goal of 200,000 users by the end of the year

Employees: Five

Based: Jumeirah Lakes Towers, Dubai

Financing stage: Two seed rounds – the first sourced from angel investors and the founders' personal savings

Second round raised Dh720,000 from silent investors in June this year

Hili 2: Unesco World Heritage site

The site is part of the Hili archaeological park in Al Ain. Excavations there have proved the existence of the earliest known agricultural communities in modern-day UAE. Some date to the Bronze Age but Hili 2 is an Iron Age site. The Iron Age witnessed the development of the falaj, a network of channels that funnelled water from natural springs in the area. Wells allowed settlements to be established, but falaj meant they could grow and thrive. Unesco, the UN's cultural body, awarded Al Ain's sites - including Hili 2 - world heritage status in 2011. Now the most recent dig at the site has revealed even more about the skilled people that lived and worked there.

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part one: how cars came to the UAE

 

The specs

Engine 60kwh FWD

Battery Rimac 120kwh Lithium Nickel Manganese Cobalt Oxide (LiNiMnCoO2) chemistry

Power 204hp Torque 360Nm

Price, base / as tested Dh174,500 

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.”

Origin
Dan Brown
Doubleday

The drill

Recharge as needed, says Mat Dryden: “We try to make it a rule that every two to three months, even if it’s for four days, we get away, get some time together, recharge, refresh.” The couple take an hour a day to check into their businesses and that’s it.

Stick to the schedule, says Mike Addo: “We have an entire wall known as ‘The Lab,’ covered with colour-coded Post-it notes dedicated to our joint weekly planner, content board, marketing strategy, trends, ideas and upcoming meetings.”

Be a team, suggests Addo: “When training together, you have to trust in each other’s abilities. Otherwise working out together very quickly becomes one person training the other.”

Pull your weight, says Thuymi Do: “To do what we do, there definitely can be no lazy member of the team.” 

Real estate tokenisation project

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.

COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
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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