A gas power plant in Lingen, Germany. German Chancellor Olaf Scholz says there is no technical reason for reduced Russian supply. AFP
A gas power plant in Lingen, Germany. German Chancellor Olaf Scholz says there is no technical reason for reduced Russian supply. AFP
A gas power plant in Lingen, Germany. German Chancellor Olaf Scholz says there is no technical reason for reduced Russian supply. AFP
A gas power plant in Lingen, Germany. German Chancellor Olaf Scholz says there is no technical reason for reduced Russian supply. AFP

Russia ready to team up with Iran on gas turbines


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Russian companies are interested in co-operating with Iran on gas turbine technology and joint production, Russian Energy Minister Nikolai Shulginov said on Tuesday.

Russia has been trying to start producing its own gas turbines of medium or large capacity for years, but is yet to fine tune the process. The need to have its own production has become more acute since the start of what Moscow calls its special military operation in Ukraine in February.

Siemens Energy and some other foreign companies, whose turbines were used to build modern gas power plants in Russia, are withdrawing from the Russian market or have suspended operations, making it difficult for Moscow to service these plants.

“There is large potential for co-operation in this,” Mr Shulginov told a meeting with his Iranian counterpart, Ali Akbar Mehrabian.

Moscow has been pushing for closer ties with Tehran amid western sanctions and pressure over Russia's war in Ukraine. Iran wants deeper co-operation with Russia in the energy, transportation and agriculture sectors. Both sides are co-operating closely in the military sphere, with Iran sending Russia drones and potentially missiles, while Russia is expected to step up arms deliveries to Iran.

In August, German Chancellor Olaf Scholz said Russia was ready to export gas to Europe during an inspection of the trans-Baltic Nord Stream 1 pipeline.

Russian exporter Gazprom at the time said the hold-up for increasing its gas supply to Europe was due to technical issues.

Gazprom cut exports via Nord Stream to 20 per cent of its capacity, worsening Europe's energy crisis.

“I saw it with my own eyes: the serviced turbine is there and ready for operation at any time,” Mr Scholz said at the time. “It just has to be requested by Russia. There are no technical reasons for reducing gas supplies.”

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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.”

Sarfira

Director: Sudha Kongara Prasad

Starring: Akshay Kumar, Radhika Madan, Paresh Rawal 

Rating: 2/5

The specs: 2018 Kia Picanto

Price: From Dh39,500

Engine: 1.2L inline four-cylinder

Transmission: Four-speed auto

Power: 86hp @ 6,000rpm

Torque: 122Nm @ 4,000rpm

Fuel economy, combined: 6.0L / 100km

SCORES IN BRIEF

New Zealand 153 and 56 for 1 in 22.4 overs at close
Pakistan 227
(Babar 62, Asad 43, Boult 4-54, De Grandhomme 2-30, Patel 2-64)

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Updated: December 21, 2022, 5:43 AM