When Max Verstappen won last December’s Abu Dhabi Grand Prix to become Formula One World Champion, the Dutch driver achieved an ambition 15 years in the making, starting from when he began racing karts.
But the 24-year-old’s triumph in the 2021 title race owed as much to the 1,000 or so people who work for his team, Oracle Red Bull Racing, as it did to his talent, outstanding though it is.
Tools moulded to specific hands
In a sport where victory can come down to tenths or hundredths of a second shaved off during qualifying, pit stops and races, Red Bull have become masters at accumulating marginal gains to achieve success.
This is evident at the team’s “Red Bull Technology Campus” in Milton Keynes in England: a leafy district that, as the name suggests, looks more like a university complex than an industrial estate.
For an example of the extraordinary attention to detail here, just take the “gun” used by the pit crew to loosen and tighten wheel nuts during tyre changes.
The gun is of a standard type used by other F1 teams, but in its quest to ensure pit stops are as smooth and fast as possible, Red Bull has produced a casing that fits exactly the hands of the actual mechanic operating it.
No wonder, then, that Red Bull – which is owned by the drinks company of the same name – holds the world record for the fastest ever pit stop: just 1.82 seconds.
Shaving seconds
The factory’s paint shop offers another case in point. While most F1 teams apply logos and names to their cars with stickers, Red Bull paints them on, as this ensures that panel surfaces are absolutely smooth.
Other attention to detail comes in the way the cars are tweaked from one race to the next. There are around 1,000 design changes between races so that, by the end of the season, the cars are about two seconds a lap faster than at the beginning.
There are hundreds of sensors spread about the car sending back data, and this is analysed to help make improvements during a race weekend and between races.
Red Bull’s title sponsor, the American technology giant Oracle, provides services that help the team analyse this and many other forms of data.
Oracle came on board as a supplier of cloud internet services – IT services delivered over the internet – in March 2021.
Part of the tie-up involves the team running millions of race simulations to work out the best strategy in terms of, for example, which tyres to use and when to change them. What happens if a driver spins or the safety car is brought out? “As a strategist, having these simulations is important because we can pre-empt all of these possibilities,” said Will Courtenay, Red Bull’s head of race strategy.
“The real strength of the simulation is that it can look at so many possibilities that the human brain cannot do.”
But race-day elements play a role, so if, said Mr Courtenay, Verstappen comes on the radio saying, “I’m just hanging on, in a minute I will struggle,” the team may bring him in for new tyres despite what the optimal strategy seems to be.
A stellar history
Oracle Red Bull Racing can trace its history back to 2004, when Red Bull bought the Jaguar team, which was the successor to Stewart Grand Prix.
Since its inception in 2005, what is now Oracle Red Bull Racing has won five drivers’ championships – one for Verstappen and four for Germany’s Sebastian Vettel – and has triumphed in the constructors’ championship four times.
This season could add to the tally, as Verstappen currently sits atop the drivers’ championship, his team mate, Mexico’s Sergio Perez, lies second, and Red Bull are in pole position in the race for the constructors’ title.
Inside, the buildings at Red Bull’s factory feel – apart from the large photographs of drivers such as Verstappen and Vettel holding aloft trophies or spraying bubbly – more like a large-scale laboratory than an oily car workshop.
Immaculate white corridors link the electronics department, the operations room – a series of banked workstations with echoes of the control centre for a space mission – the paint shop, the 3D printing department, and much else.
The composites department is equipped with vast room-sized autoclaves, which bake components made from carbon fibre, a material that is both light and extremely strong.
Constructed on-site
Almost everything is made in-house, although, as with other teams, the wheels come from an outside supplier, BBS. Cardboard boxes containing brand new wheels are stacked in one of buildings.
In the race bays, crew practice pit stops on the car for half an hour, twice a day. The car used for this has an electric motor to prevent the ear-splitting noise – and the fumes – of a real F1 engine from spreading through the factory as it moves into position for the tyre changes.
As well as being important for the development, operation and improvement of the car, cloud technology helps the team strengthen engagement with fans, such as through personalising the website for the individual browsing it.
“How do we take this amazing sport into people’s homes? How do we take the excitement and make people feel part of it? It’s giving fans back something that they wouldn’t otherwise experience,” said Emma Sutton, chief customer officer at Oracle.
Cloud technology is key also to modelling Red Bull is carrying out as it develops an all-new engine for the 2026 season onwards. These Red Bull Powertrains units will replace the current rebranded Honda engines.
On the far side of the Red Bull campus a new building is being finished to house the additional 200 or so staff who will work on the engine.
Engine modelling involves computational fluid dynamics – the subject that deals with how fluids, including air, move – and require significant computing power.
James Taylor, head of thermodynamics at Red Bull Powertrains, said a team had been assembled from “a breadth of industries” to develop the engine, which will be completely new.
“It’s completely from scratch, a completely fresh design. It’s a massive challenge,” he said. “There’s no carry over from the Honda.”
Developing an engine that is competitive against F1 power units from Ferrari, Renault and Mercedes is no easy task.
But given Red Bull’s impressive haul of silverware to date, few would bet against the team extending its success into engine manufacturing in this decade and beyond.
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.”
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Stamp duty timeline
December 2014: Former UK finance minister George Osbourne reforms stamp duty, replacing the slab system with a blended rate scheme, with the top rate increasing to 12 per cent from 10 per cent:
Up to £125,000 - 0%; £125,000 to £250,000 – 2%; £250,000 to £925,000 – 5%; £925,000 to £1.5m: 10%; Over £1.5m – 12%
April 2016: New 3% surcharge applied to any buy-to-let properties or additional homes purchased.
July 2020: Rishi Sunak unveils SDLT holiday, with no tax to pay on the first £500,000, with buyers saving up to £15,000.
March 2021: Mr Sunak decides the fate of SDLT holiday at his March 3 budget, with expectations he will extend the perk unti June.
April 2021: 2% SDLT surcharge added to property transactions made by overseas buyers.
Polarised public
31% in UK say BBC is biased to left-wing views
19% in UK say BBC is biased to right-wing views
19% in UK say BBC is not biased at all
Source: YouGov
Western Region Asia Cup T20 Qualifier
Sun Feb 23 – Thu Feb 27, Al Amerat, Oman
The two finalists advance to the Asia qualifier in Malaysia in August
Group A
Bahrain, Maldives, Oman, Qatar
Group B
UAE, Iran, Kuwait, Saudi Arabia
Iftar programme at the Sheikh Mohammed Centre for Cultural Understanding
Established in 1998, the Sheikh Mohammed Centre for Cultural Understanding was created with a vision to teach residents about the traditions and customs of the UAE. Its motto is ‘open doors, open minds’. All year-round, visitors can sign up for a traditional Emirati breakfast, lunch or dinner meal, as well as a range of walking tours, including ones to sites such as the Jumeirah Mosque or Al Fahidi Historical Neighbourhood.
Every year during Ramadan, an iftar programme is rolled out. This allows guests to break their fast with the centre’s presenters, visit a nearby mosque and observe their guides while they pray. These events last for about two hours and are open to the public, or can be booked for a private event.
Until the end of Ramadan, the iftar events take place from 7pm until 9pm, from Saturday to Thursday. Advanced booking is required.
For more details, email openminds@cultures.ae or visit www.cultures.ae
THE%20SPECS
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Retail gloom
Online grocer Ocado revealed retail sales fell 5.7 per cen in its first quarter as customers switched back to pre-pandemic shopping patterns.
It was a tough comparison from a year earlier, when the UK was in lockdown, but on a two-year basis its retail division, a joint venture with Marks&Spencer, rose 31.7 per cent over the quarter.
The group added that a 15 per cent drop in customer basket size offset an 11.6. per cent rise in the number of customer transactions.
Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
UAE currency: the story behind the money in your pockets
