Six people travelling in a minibus were killed in an accident on Al Habab Road last week in which a passenger from another car also died.
Six people travelling in a minibus were killed in an accident on Al Habab Road last week in which a passenger from another car also died.

Police call for ban on passenger minibuses



DUBAI // Minibuses are "ticking time bombs" that should be banned as a means of transporting passengers, the head of traffic police said yesterday. Maj Gen Mohammad Zaif al Zafein, the director of the traffic department of Dubai Police, said his section had asked the Roads and Transport Authority (RTA) to ban the vehicles. Minibuses, normally designed to carry eight to 10 people, are considered especially unsafe when overcrowded. This year alone they have been involved in accidents that have claimed 76 lives. "Minibuses lose their balance easily when the driver speeds, which makes them a ticking bomb on the road," said Maj Gen al Zafein. "To use minibuses as a means to transport passengers is life endangering, and their use should be limited to the transportation of goods." A minibus apparently overfilled with workers rolled over on the Jebel Ali-Lehbab Road on Sunday after hitting a car. Seven people were killed and 11 injured, two critically. The proposal is in its primary stages, and no timetable has been given for when the ban might be implemented. But Maj Gen al Zafein confirmed that the RTA, which is responsible for generating such legislation, had been supportive of the idea. "They understand the necessity of finding a solution for this problem," he said.

Overcrowded minibuses - the one in Sunday's accident was carrying more than a dozen people in its 11 seats - become top-heavy, which makes them more likely to turn over. Many companies that use minibuses to transport their workers put more passengers inside than the bus is designed to carry, police say. Because they are light vehicles, minibuses often do not fare well when they are involved in serious accidents. "The problem with minibuses is that they are not as strong as other vehicles when dealing with impact," Dr Younis Kazim, the director of medical affairs at Rashid Hospital in Dubai, said earlier this year. For those reasons, officials believe, the vehicles should not by used for passenger transport, "The situation is alarming, and to prevent more deaths, a ban on transporting passengers in these is needed," Maj Gen al Zafein said. "The solution of this problem is to a total ban on transportation of people in minibuses, and not to have the minibuses under a different category from light vehicles, because they are light vehicles and with a light structure. "The combination of speed, the light structure of the vehicle and number of people which are exceeding the capacity of the bus is a very dangerous one and must be addressed." Maj Gen al Zafein suggested the ban would include the use of minibuses by families. Officials also said minibus drivers are often not properly trained, leading to reckless behaviour and speeding. No special licence is required to operate minibuses, although they are designed to carry more people than ordinary cars.

After two major minibus accidents earlier this year that left six people dead and 20 injured - many of them with brain injuries and multiple fractures - Dubai officials considered changing licensing requirements. Now, there is no specialised test. Drivers simply must possess a valid light vehicle licence proving they have been driving in the UAE for at least three years. "Bad driving behaviours need actions after training and getting the licence, and this is what we are working on in our strategic plan for the year 2009-2010," Ali Abdullah Jassim, the director of licensing at the RTA, said in March. "Among the things being considered is the introduction of a 'certificate of professional competence'." In late June, Dubai Police launched a two-week safety awareness campaign aimed at drivers of minibuses. Maj Gen al Zafein emphasised at the time that the companies were also responsible for ensuring their drivers followed UAE traffic laws and did not drive dangerously. "The responsibility for the safety of passengers is on their necks, and they should ensure the safety of the vehicle," he said. Police have not assigned fault in the accident on Sunday, which occurred with the minibus made a left turn and was hit by a car carrying two people, one of whom was killed. Last year, minibus accidents killed 31 people in Dubai. wissa@thenational.ae

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In numbers: PKK’s money network in Europe

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Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

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Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

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Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

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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.”

Other workplace saving schemes
  • The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
  • Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
  • National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
  • In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
  • Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
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