Traffic in Ajman is on the rise as more people move to the emirate for cheaper rents. Sarah Dea / The National
Traffic in Ajman is on the rise as more people move to the emirate for cheaper rents. Sarah Dea / The National
Traffic in Ajman is on the rise as more people move to the emirate for cheaper rents. Sarah Dea / The National
Traffic in Ajman is on the rise as more people move to the emirate for cheaper rents. Sarah Dea / The National

Traffic woe for Ajman residents


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AJMAN // Long tailbacks and bumper-to-bumper traffic jams are making life increasingly difficult for motorists commuting around Ajman and to jobs in other emirates.

The heavy flow of cars and lorries means major roads and motorways, such as Al Ittihad Street, Sheikh Rashid bin Humaid Road and Corniche Road, are no-go areas during the morning and evening rush hours. And traffic problems persist late into the night.

While residents admit that congestion has always been an issue, the problem has been steadily getting worse as more people move to the emirate, lured by cheaper rents, putting increased strain on its road network.

“There is horrible congestion compared to the last 10 years,” said Mohammed Salim, who has lived in Ajman for 27 years. “It is due to development and increased urbanisation and population. The main streets have too much traffic, especially in the morning, starting from 7am, and in the evening at 6pm.”

The 54-year-old Palestinian teacher said that although the volume of cars on the road was not as high as in neighbouring Sharjah, the emirate would soon face similar problems unless a solution was found.

Majdi Saeed, 42, who has lived in Ajman for four years, said the volume of cars on the roads had increased by about 60 per cent in the time he has lived there as the population has continued to grow, causing many problems for residents.

In an attempt to tackle traffic jams and divert motorists to alternative routes away from the busiest areas and black spots, Ajman Police deploys patrols at major junctions such as Rona Roundabout, Hamdan Centre and the Corniche.

Part of the problem, however, lies with the motorists who do not abide by the rules of the road and use illegal manoeuvres and even drive down the wrong lane in an attempt to get ahead of other cars, said Capt Rashid bin Hindi, head of the detective and traffic control department at Ajman Traffic Department.

“The reason behind the congestion in Ajman lies in the high population and the lack of motorists’ commitment to drive in the right lane.

“For the Nuaimiya area, the traffic is due to the high population and street repairs that started late. It is a commercial and residential area. Half of the emirate’s population lives there because it is filled with towers, buildings and shops,” Capt bin Hindi said.

He said that congestion near the Hamdan Centre on Al Ittihad Street was caused by drivers not staying in the correct lane and trying to squeeze ahead of other cars, causing a bottleneck and long delays.

“There are seven patrols working 24 hours on the streets where car accidents are frequent, such as Sheikh Khalifa, Sheikh Rashid bin Humaid and Al Ittihad streets,” said Capt bin Hindi.

He also said that 10 police motorcycles were used during peak times “because of their ease of moving among the cars”, and that police drove unmarked cars with officers on the lookout for motorists committing traffic offences.

Capt bin Hindi said the emirate’s traffic committee was looking at solutions, including building more bridges, expanding roads to increase the number of lanes, as well as installing more traffic cameras and radars.

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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.”

What is blockchain?

Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.

The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.

Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.

However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.

Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.

LAST-16 EUROPA LEAGUE FIXTURES

Wednesday (Kick-offs UAE)

FC Copenhagen (0) v Istanbul Basaksehir (1) 8.55pm

Shakhtar Donetsk (2) v Wolfsburg (1) 8.55pm

Inter Milan v Getafe (one leg only) 11pm

Manchester United (5) v LASK (0) 11pm 

Thursday

Bayer Leverkusen (3) v Rangers (1) 8.55pm

Sevilla v Roma  (one leg only)  8.55pm

FC Basel (3) v Eintracht Frankfurt (0) 11pm 

Wolves (1) Olympiakos (1) 11pm 

Our legal consultant

Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.