Virgin Hyperloop launches new plan to bring high-speed travel to India's tech hub


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A high-speed transport network which aims to slash global commuting times is on track to bring its advanced technology to India.

UAE-backed Virgin Hyperloop will assess plans to develop a super-fast route from Kempegowda International Airport to Bengaluru - the country's sprawling tech hub.

The hi-tech system is comprised of pods which can transport passengers or cargo at speeds in excess of 1,000kph, roughly three times faster than conventional high-speed rail.

An agreement was signed between Sultan Ahmed bin Sulayem, chairman of Virgin Hyperloop, and TM Vijay Bhaskar, chairman of the board of directors at Bengaluru airport, to launch a pre-feasibility study for the project.

A hyperloop-connected airport would dramatically improve the delivery of cargo and create an ultra-efficient supply chain

"Beyond just the transit of passengers, airports are crucial conduits for goods, especially time-sensitive deliveries," said Mr bin Sulaymen, also group chairman of DP World.

"A hyperloop-connected airport would dramatically improve the delivery of cargo and create an ultra-efficient supply chain."

The research will focus on technical, economical and route feasibility and is expected to take 12 months to complete.

Preliminary analysis found Hyperloop technology could transport thousands of passengers from the airport to the city centre in under 10 minutes - compared to more than 45 minutes by road.

Virgin Hyperloop is working to turn a grand transport dream into the reality with the support of the Middle East.

The company has partnered with Dubai's Roads and Transport Authority to drive forward plans to utilise hyperloop technology on a route between Abu Dhabi and Dubai.

The ambitious scheme would reduce travel times from roughly an hour by road to just 12 minutes.

Abu Dhabi's Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) signed a preliminary agreement with Virgin Hyperloop in June to collaborate on research to develop the futuristic transport system.

“Virgin Hyperloop will change the way we move around the world," Dr Sultan Al Jaber, the university's chairman, said at the virtual signing.

"MBZUAI will help enable this by providing access to some of the world’s most talented AI professionals, as well as superior research facilities, which can contribute to realising Virgin Hyperloop’s vision.”

In March, Saudi Arabia issued a trade licence for the company following a national pre-feasibility study on using hyperloop technology to transport people and goods. The study found a hyperloop would cut the travel time from Riyadh to Jeddah to only 46 minutes.

DP World, the Dubai-based ports operator, and the Abu Dhabi Capital Group are also major investors in the firm, with DP World's chairman and chief executive Sultan Bin Sulayem also serving as chairman of Virgin Hyperloop.

In July, the US House of Representatives passed legislation calling for regulatory framework for the safe use of hyperloop systems, a move praised by Dubai ports operator DP World, the largest investor in Virgin Hyperloop.

The Non-Traditional and Emerging Transportation Technology Council in the US is expected to issue guidance in the next six months to set out a clear regulatory framework for the industry.

“The decision is a huge vote of confidence that we are all on the right side of history,” said Sultan bin Sulayem at the time.

“The move, which brings hyperloop systems one major step closer to reality, validates our decision to take this technology seriously and support this innovation.”

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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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Company: Bidzi

● Started: 2024

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● Based: Dubai, UAE

● Industry: M&A

● Funding size: Bootstrapped

● No of employees: Nine

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UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
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The flights Etihad (www.etihad.com) and Spice Jet (www.spicejet.com) fly direct from Abu Dhabi and Dubai to Pune respectively from Dh1,000 return including taxes. Pune airport is 90 minutes away by road. 

The hotels A stay at Atmantan Wellness Resort (www.atmantan.com) costs from Rs24,000 (Dh1,235) per night, including taxes, consultations, meals and a treatment package.
 

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Tuesday
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Company: Instabug

Founded: 2013

Based: Egypt, Cairo

Sector: IT

Employees: 100

Stage: Series A

Investors: Flat6Labs, Accel, Y Combinator and angel investors

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Liverpool's all-time goalscorers

Ian Rush 346
Roger Hunt 285
Mohamed Salah 250
Gordon Hodgson 241
Billy Liddell 228