Passengers ride one of the new public buses along Al Salam street in Abu Dhabi.
Passengers ride one of the new public buses along Al Salam street in Abu Dhabi.

Taxis suffer as bus business booms



ABU DHABI // Two days after it was launched, the city's free bus service has been so successful that it has left taxi drivers struggling to find passengers. Taxi drivers say they are already seeing a drop in business as they compete with the fleet of air-conditioned buses picking up passengers around the streets. "Before, people were fighting over who would get into my taxi," said Ghadi Hussain, a gold and white taxi driver. "Now, who will go to taxis? Taxi drivers are going around and their cars are empty."

The turquoise buses have quickly become a hit with residents, who say riding for free and in air-conditioned comfort is a hard deal to beat. "Now we can visit all our Abu Dhabi customers very easily," said Kashim Raza, 25, a credit card salesman commuting from Marina Mall. "It takes longer, but it saves us money." However, opting for the bus is by no means the fastest transport option. A ride from Marina Mall to the Al Meena shopping centre, with all stops in between, took more than one hour yesterday. The trip takes about 15 minutes by taxi.

Taxi drivers claimed they were losing money. "Last night, I was at Abu Dhabi Mall. There were two lines of people waiting for buses and no one was taking taxis," Mr Hussain said. Silver taxi drivers, including Khawaja Sultan Ali, said they were also scrambling for customers. "We're going after the buses, to their stops, thinking that some passengers will come to us," Mr Ali said. "But no one comes."

Mr Ali said the timing of the introduction of the bus service was bad. "Right now, there are less passengers on the streets," he said. "School is out, people are on holiday. There are all these extra cabs out on the street, all trying to get the same passengers." Ghadi Hussain, who drives a white and gold taxi, said he could not compete with the free fare for the bus. The majority of his passengers were labourers who use cabs for short-distance rides.

"The market in Abu Dhabi is different than Dubai; there are less Europeans taking taxis," he said. "Most of our passengers are poor workers: Indians, Pakistanis, Bangladeshis. They will, of course, choose the cheaper way to travel." Khadim Hussain said Abu Dhabi was too small a market for old and new taxis and now the new buses. "This isn't India or Pakistan. How far do most people travel?" he said. "People don't go out much at night, maybe to Marina Mall for shopping or for a walk along the Corniche."

Business was booming on the buses yesterday. There was standing room only on buses heading towards Carrefour on Airport Road and into the city on Fourth Street. Mr Raza, 25, and his colleague, Mohammed Shahid, 26, said they would continue to use the buses as it would save about Dh50 (US$13.61) a day, the amount they usually spent on taxis. Richelle Celda, 31, who works at the Arty Shop in the Al Meena Shopping Centre and at Marina Mall, said the spacious, air-conditioned buses were more comfortable and reliable than taxis. Before Monday, the only other means of public transport was a municipally run van that had a capacity for about 15 passengers. "If the seats are full, you could not get on," Ms Celda, from the Philippines, said.

"Most of the time, I was waiting for taxis or for the [van]." At Marina Mall, Mohammed Haneefa, a bus supervisor, was handing out copies of route maps and schedules. He said interest in the bus service was growing rapidly. "Today it is going up, up, up," Mr Haneefa said. There are four routes for the new service, which will be free until the end of the year. Buses depart from Marina Mall, Al Meena Shopping Centre, near Abu Dhabi Mall on 10th Street, the City Air Terminal on 12th Street and from Carrefour on Airport Road.

The first bus sets off at 6am and the last leaves at 11.30pm. The buses, which can carry about 45 passengers, are a short-term solution. They will be replaced by buses of a higher quality by the end of the year, according to the Abu Dhabi Department of Transport. Next year, the department plans to have buses making 2,000 trips a day on 21 routes on the island. By 2010, there will be 1,360 air-conditioned buses operating in the emirate.

* The National

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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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10 tips for entry-level job seekers
  • Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
  • Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
  • Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
  • For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
  • Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
  • Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
  • Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
  • Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
  • Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
  • Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.

Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz