Eight people were killed when a fire broke out in their home (pictured) in the town of Barka, Al Batnah, Oman. Saleh Al Shaibany for The National
Eight people were killed when a fire broke out in their home (pictured) in the town of Barka, Al Batnah, Oman. Saleh Al Shaibany for The National
Eight people were killed when a fire broke out in their home (pictured) in the town of Barka, Al Batnah, Oman. Saleh Al Shaibany for The National
Eight people were killed when a fire broke out in their home (pictured) in the town of Barka, Al Batnah, Oman. Saleh Al Shaibany for The National

Eight people, including five children, killed in Oman house fire


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Eight people, most of whom were children, were killed in a fire that erupted in their home in Oman on Wednesday morning.

Police said that a 35-year-old Omani woman and her five daughters, that were between the ages of five and 15, were killed in the blaze in the town of Barka in the Al Batnah region.

The woman’s sister and an Ethiopian domestic worker were also killed in the fire, while the children’s father and uncle managed to escape.

Witnesses said the incident, which took place at about 4.30am, woke them up.

"I was awakened by the noise. From my bedroom window, all I could see was fire and thick smoke coming from the house," one neighbour told The National. "There were two men standing outside, and they were very agitated. It was horrible."

Among those killed were 10-year-old twin sisters, who were blind, witnesses said.

The cause of the fire has yet to be determined, but police suspect it was a result of faulty electrical wiring. The incident marks the greatest number of causalities killed in a domestic fire, said the police.

In 2015, three Indian expatriates were killed in a fire that broke out in their home in Muscat due to a wiring fault.

Safety experts say poor electrical wiring in both private and commercial buildings is the major cause of fire in the country, adding it costs millions of rials in repairs a year.

“My estimate is that fire due to faulty electrical wiring in buildings and private houses causes more than 20 million rials (Dh19.45m) in damages every year in Oman,” said Ian Philips, head of Health Safety and Environment (HSE) at Modern College of Business and Science based in Muscat.

“Some contractors try to cut corners in electrical wiring by installing cheap materials and sub standards cables,” Mr Philips added.

Public Authority for Civil Defence and Ambulance (PACDA) last month confirmed that there had been 1,205 cases of fire in various parts of the country in 2017 compared to 1,189 cases reported last year.

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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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