DUBAI // Six months to the day since the first passengers used the Dubai Metro, commuters say it has changed their lives as well as saved them money.
While many have remained loyal to their cars since 09/09/09, when 10 of the 29 stations on the Red Line opened, others are relieved to have an alternative to the emirate's busy roads.
Jahangar Isaev, from Uzbekistan, who lives near BurJuman Centre in Bur Dubai and works as a customer representative at Dubai Mall, next to Burj Khalifa, said: "I used to spend between Dh400 and Dh500 a month before the Metro opened
"Before the Metro it could have taken up to two hours to get to work. If I was late or was in a rush I had no other option but to get a taxi and spend Dh20 to Dh30.
"A bus would just take too long and would be stuck in traffic the whole way. The Metro has changed my life and now I have a lot more time to myself. I know I will be at my job in 25 minutes."
Figures provided by the Roads and Transport Authority (RTA) show that 10 million passengers used the Metro within its first five months of operation.
Safat Sherif, 20, a student at the Canadian University of Dubai, said he no longer felt pressure to apply for his driving licence.
"I know I don't have to sit in traffic now on a bus that could take up to two hours to travel from Sharjah to the campus," Mr Sherif said.
He still takes a bus from Sharjah to Rashidiya station, but the length of his commute has been cut in half. And what formerly was a Dh7 trip now costs him only Dh4.50.
Not everyone is convinced of the Metro's advantages, however. Ricardo Recco, 28, from Brazil, said he had never boarded the Metro. "I drive to work and had never had a need to use it," he said.
That could change when the airport stations open. "I work at the airport, so if Terminal 1 station opens, I might use it," he said.
Eleven Metro stations are in use. Seven of the remaining 18 incomplete stations will open on April 25, the RTA said last month. By then, construction will be complete on all 29 stations on the Red Line.
However, of the near-finished stations, only Emirates, Airport Terminal 1, GGICO, Al Karama, World Trade Centre, Marina and Ibn Battuta will be ready for passengers.
Ramadan Abdulla Mohammed, the director of rail operations at the RTA, said the number of passengers is likely to rise with the opening of "key stations" such as Airport Terminal 1.
Officials expect 35 million passengers to have used the system by the end of this year. The completion of the Metro's second line, the Green, has been pushed back to August next year.
The Metro's impact has been felt by businesses as well as residents. Fuad Sharaf, the vice president at Mall of the Emirates, said: "There is a definite increase in the number of visitors since the Metro opened, particularly as our station is the busiest stop on the Red Line. Being close to the Metro certainly offers convenience to our shoppers and an inexpensive way to visit us."
Tourists are also riding the rails, not as an attraction but as a means to get around the city, Mr Mohammed said. Marcus Stephenson, associate professor of tourism management at Middlesex University Dubai, said the business-tourism industry "will perhaps welcome the Metro, allowing business travellers and delegates ease of mobility to the many hotels and conference venues" that are near stations.
The cost of the Red and Green lines will have risen from Dh15.5 billion (US$4.2bn) to an estimated Dh28bn by the time the two tracks are complete next year.
* The National, with additional reporting by Leah Oatway
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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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