Taxi minimum put at Dh10 in Dubai


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Dubai // The delighted drivers might call it the great lurch forward. How else to describe a sudden tripling of minimum taxi fares? Effective immediately, every taxi ride in Dubai will cost at least Dh10 (US$2.72) as part of a new fare structure announced yesterday. A starting fee of Dh20 has been set for journeys from Dubai to Sharjah.

The meter will always start at the usual Dh3, but any journey that does not reach Dh10 will be rounded up. The Sharjah fee will be charged when the car crosses into the emirate. Finally, the fee for waiting time will be 50 fils per minute in addition to distance travelled. Previously, the first 10 minutes of the journey did not incur a time-related charge. The Roads and Transport Authority (RTA) outlined the new fees yesterday, confirming a number of changes that had been introduced informally in the past few weeks. Every taxi in Dubai is expected to be fitted with updated meters within the next two weeks. Some taxis are already charging the fees.

The chief executive of the RTA's public transport agency, Essa al Dosari, said the minimum charges were introduced to encourage taxi drivers to stop refusing to pick up passengers for short distances and to make trips to Sharjah. "To put an end to this phenomenon and encourage the drivers to carry passengers whatever the distance is, the meter will electronically round the amount to be Dh10 per trip," Mr al Dosari said.

Mehmoudi Riadh, from Tunisia, said the fee increase was the wrong way to go about getting taxis to take passengers to Sharjah. "I live in Sharjah and now this is another extra cost," he said. "It is not good because of the current financial crisis. People need more ways of saving money. I still think it will not convince a taxi to go to Sharjah." But Gareth Brown from the UK was not as concerned. "I think how often I get a taxi that is less than Dh10 is very rare," he said. "The shortest fare for me is about Dh15, so it does not really affect me."

All taxis operating for the RTA franchise will be introducing the charges, including the Dubai Taxi Corporation's fleet. "Through this plan, we aim to impact the mechanism of the daily work of cab drivers and uplift their performance since RTA views them as ambassadors in dealing with passengers," Mr al Dosari said. He added: "Taxi drivers play a vital role in contributing to the advancement of taxi services in Dubai, and they ought to be supported to get an increment in their earnings. The decision will also greatly curb the phenomenon of drivers' refusal to lift passengers. This will accordingly enhance customer satisfaction and address the demand for this service."

Even if the taxi is sitting in traffic, 50 fils will be added every minute to the meter. The public transport agency hopes it will encourage drivers to pick up passengers in congested traffic. Previously, this charge would begin 10 minutes into the journey. Mr al Dosari said the RTA's marketing and communications department would launch a number of campaigns "to enlighten the public of future benefits of these decisions and the positive effect they will have on upgrading this sector to serve a wide spectrum of the community".

"Since these decisions will result in increasing the averaged income of drivers, it will also encourage them to put more efforts and considerably cut the cases of refusal to lift passengers." Mr al Dosari said the RTA had also dispatched a delegation of representatives for the public transport agency, Dubai Taxi Corporation and all the franchise companies to Singapore last year to learn about the best practices.

eharnan@thenational.ae

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Known EU weapons transfers to Ukraine since the war began: Germany 1,000 anti-tank weapons and 500 Stinger surface-to-air missiles. Luxembourg 100 NLAW anti-tank weapons, jeeps and 15 military tents as well as air transport capacity. Belgium 2,000 machine guns, 3,800 tons of fuel. Netherlands 200 Stinger missiles. Poland 100 mortars, 8 drones, Javelin anti-tank weapons, Grot assault rifles, munitions. Slovakia 12,000 pieces of artillery ammunition, 10 million litres of fuel, 2.4 million litres of aviation fuel and 2 Bozena de-mining systems. Estonia Javelin anti-tank weapons.  Latvia Stinger surface to air missiles. Czech Republic machine guns, assault rifles, other light weapons and ammunition worth $8.57 million.

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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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Courtesy: Crystal Intelligence