Pilgrims gather at Mount Arafat, south-east of Mecca, yesterday. About 1.6 million pilgrims have travelled to Saudi Arabia for this year's Haj.
Pilgrims gather at Mount Arafat, south-east of Mecca, yesterday. About 1.6 million pilgrims have travelled to Saudi Arabia for this year's Haj.
Pilgrims gather at Mount Arafat, south-east of Mecca, yesterday. About 1.6 million pilgrims have travelled to Saudi Arabia for this year's Haj.
Pilgrims gather at Mount Arafat, south-east of Mecca, yesterday. About 1.6 million pilgrims have travelled to Saudi Arabia for this year's Haj.

Haj begins, marred by flooding


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JEDDAH // The heaviest rainfall in years triggered flooding that wiped out bridges and streets in Mecca province, stranding Haj pilgrims and killing at least 77 people, none of whom were pilgrims. The deaths also increased worries about the country's infrastructure as more than a million people made their way through the port city of Jeddah, the gateway to the Haj in Mecca.

About 1.6 million pilgrims have come to Saudi Arabia from abroad for the Haj this year, the world's largest yearly religious gathering. The state-run Saudi Press Agency said Wednesday's deaths were in Jeddah, Rabigh and Mecca. The statement blamed the deaths on flooding and collapsed homes. The floods forced the closure of a motorway to Mecca, stranding pilgrims who were unable to complete their journey. A spokesman for the Saudi interior ministry, Brig Gen Mansour al-Turki, said yesterday that none of the casualties were among the millions of pilgrims.

At least 900 people had to be rescued after being stranded by the floodwaters, according to a statement by the kingdom's civil defence rescue service on Wednesday. The downpours ceased yesterday but the rescue service warned residents not to go outside today as it expects to see more rain. According to the civil defence, about 3,000 cars drifted away in the floods in Jeddah. An eyewitness said he saw at least 30 people carried away by floods in South Jeddah.

Jeddah, which saw rainfall of up to 76mm on Wednesday morning, lacks drainage systems to handle the inundation, although the government says over the past five years it has allocated billions of riyals to developing such a system. "We hear about budget allocation and we are always told that there are projects underway but in hard times we don't see anything," said Motassem al Felo, a resident of Jeddah.

"I think it's time for the municipality to take actions or allow other city planners to take them," Mr al Felo said. "Yesterday it took me more than an hour and a half to reach work. On a regular day it takes me only 20 to 25 minutes to get there," he added. In in August the interior minister and the second deputy premier, Prince Naif bin Abdulaziz, was asked by former city planner Zaki Farsi to intervene fist the environmental hazards Jeddah is facing due to the lack of appropriate infrastructure.

"Through the entire past years, only 30 per cent of the planned rainwater drain system for Jeddah was completed," said Mr Farsi in the presentation that was attended by the media and business community in Jeddah. Mr Farsi attributed the problem to the insufficient funds the city receives from the ministry of finance although the government had allocated large sums to develop its infrastructure. Mr Farsi explained to Prince Naif that Jeddah's planners have asked the government to allocate more than 12 billion Saudi riyals in 2009 to carry on with the infrastructure projects but the finance ministry only allocated 10 per cent of the requested budget.

The city also estimated the cost of cleaning up the city's beaches and developing its corniche at about 850 million Saudi riyals (Dh833m) in 2009, however, the ministry of finance only disbursed 50 million riyals. The situation in Jeddah worsened, according to Mr Farsi, after the ministry allocated only 16 per cent of the money needed to maintain and operate the infrastructure of the city. @Email:wmahdi@thenational.ae

* With additional reporting by the Associated Press

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

Company name: Farmin

Date started: March 2019

Founder: Dr Ali Al Hammadi 

Based: Abu Dhabi

Sector: AgriTech

Initial investment: None to date

Partners/Incubators: UAE Space Agency/Krypto Labs 

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Trump v Khan

2016: Feud begins after Khan criticised Trump’s proposed Muslim travel ban to US

2017: Trump criticises Khan’s ‘no reason to be alarmed’ response to London Bridge terror attacks

2019: Trump calls Khan a “stone cold loser” before first state visit

2019: Trump tweets about “Khan’s Londonistan”, calling him “a national disgrace”

2022:  Khan’s office attributes rise in Islamophobic abuse against the major to hostility stoked during Trump’s presidency

July 2025 During a golfing trip to Scotland, Trump calls Khan “a nasty person”

Sept 2025 Trump blames Khan for London’s “stabbings and the dirt and the filth”.

Dec 2025 Trump suggests migrants got Khan elected, calls him a “horrible, vicious, disgusting mayor”

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.”

Sweet%20Tooth
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While you're here
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Euro 2020

Group A: Italy, Switzerland, Wales, Turkey 

Group B: Belgium, Russia, Denmark, Finland

Group C: Netherlands, Ukraine, Austria, 
Georgia/Kosovo/Belarus/North Macedonia

Group D: England, Croatia, Czech Republic, 
Scotland/Israel/Norway/Serbia

Group E: Spain, Poland, Sweden, 
N.Ireland/Bosnia/Slovakia/Ireland

Group F: Germany, France, Portugal, 
Iceland/Romania/Bulgaria/Hungary