Experts are divided over a proposal to reduce the speed buffer from 20kph to 10kph for certain vehicles. Ravindranath K / The National
Experts are divided over a proposal to reduce the speed buffer from 20kph to 10kph for certain vehicles. Ravindranath K / The National

Mixed reaction to proposal to reduce buffer on UAE speed limit



ABU DHABI // Transport experts are divided over a recommendation to reduce the speed buffer from 20kph to 10kph for certain vehicles.

Last month, the Federal Traffic Council said it would like to see a reduction to the buffer for heavy goods vehicles, buses and taxis.

A gradual reduction of the buffer was suggested in June 2014, with experts believing that reducing the buffer by 10kph, coupled with more training for drivers in hazard perception, would help to reduce the risk of accidents.

Abdullah Al Sabbagh, chief executive of Cars Taxi group, backed the plan, but suggested more in-depth traffic studies before considering a reduction.

“It can reduce the number of accidents, but some customers don’t want it and would tell the driver to hurry,” he said.

He said that officials needed to study the reason the majority of accidents occurred before making a decision.

“Are most accidents due to excessive speed, sudden lane changes, tailgating or maybe caused by burst tyres?” asked Mr Al Sabbagh, a former general manager for TransAD. “Unlike a normal car, a taxi is driven 550 kilometres a day, and for a double shift, more than 800km a day.”

Sonal Ahuja, regional director of PTV Group, which provides software and consultancy services for traffic and transport planning, said: “The 20kph buffer should be lowered as it is too high compared to what is allowed in most European countries. In my technical opinion, I think 10 per cent plus 2kph is what should be allowed here. That means, for example, motorists will not receive a fine for travelling up to 112kph in a 100kph zone.”

Authorities should enforce the same speed limit by vehicle class, excluding taxis, Mr Ahuja said. “On the side of the road, you’ll see a circle with the image of a car or a lorry, and people know what the speed limits are,” he said. “But the definition of taxis these days is not binary. You have licensed taxis, limousines and private hire services such as Uber and Careem.

“An Uber driver, for example, may be registered with Uber, but he or she can drive the car for personal use. How will you differentiate a taxi from a personal vehicle?”

All vehicles should be subject to the same buffer if there is a desire to set one and to make it public knowledge, said Simon Labbett, project director at Sheida, an Omani road safety standards body.

“But there is no need to publish an enforcement speed,” he said. “The speed limit is the limit posted by the sign and motorists only need to factor on that speed.”

In the UAE, speed limits do not incur a penalty until 140kph on a motorway, which leads to the 140kph becoming the de facto speed limit, Mr Labbett said.

“It increases the range of speeds of vehicles travelling along the road,” he said.

“With a wide range of speed differential, it’s well established that there’s an increased likelihood of collision risk.”

rruiz@thenational.ae

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Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
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Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
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Dubai works towards better air quality by 2021

Dubai is on a mission to record good air quality for 90 per cent of the year – up from 86 per cent annually today – by 2021.

The municipality plans to have seven mobile air-monitoring stations by 2020 to capture more accurate data in hourly and daily trends of pollution.

These will be on the Palm Jumeirah, Al Qusais, Muhaisnah, Rashidiyah, Al Wasl, Al Quoz and Dubai Investment Park.

“It will allow real-time responding for emergency cases,” said Khaldoon Al Daraji, first environment safety officer at the municipality.

“We’re in a good position except for the cases that are out of our hands, such as sandstorms.

“Sandstorms are our main concern because the UAE is just a receiver.

“The hotspots are Iran, Saudi Arabia and southern Iraq, but we’re working hard with the region to reduce the cycle of sandstorm generation.”

Mr Al Daraji said monitoring as it stood covered 47 per cent of Dubai.

There are 12 fixed stations in the emirate, but Dubai also receives information from monitors belonging to other entities.

“There are 25 stations in total,” Mr Al Daraji said.

“We added new technology and equipment used for the first time for the detection of heavy metals.

“A hundred parameters can be detected but we want to expand it to make sure that the data captured can allow a baseline study in some areas to ensure they are well positioned.”

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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Company: Bidzi

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● No of employees: Nine

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