The French industrial engineer Fives Group is in talks with Emal, the UAE-based aluminium smelter, and Kizad, the Khalifa Industrial Zone Abu Dhabi, about a multimillion euro partnership that could create as many as 100 high-tech jobs for nationals.
Frédéric Sanchez, the chief executive of Fives Group, held talks with Khaled Salmeen, the chief executive of Kizad, and representatives from Emal at the Abu Dhabi investment forum in Paris on Wednesday.
Mr Sanchez has proposed setting up a new operation within Kizad to provide Emal with state-of-the-art technology to manufacture anodes crucial to the production of aluminium. The group also proposed providing technology for treating the polluting emissions that are a by-product of the aluminium smelting process.
"All of the big aluminium smelters in the Gulf are using equipment from Fives except Emal. They are still working with former suppliers, with whom they have worked since the beginning," Mr Sanchez said.
"But our technology is much more efficient than the technology they currently have as their competitors can show them. So we are talking about becoming a part of their operations."
Importantly, Fives Group has proposed training Emirati nationals in the high-tech engineering processes used to manufacture the specialised anodes for smelting aluminium.
"It is not highly capital-intensive," Mr Sanchez said, "but it is creating a knowledge base that is sustainable."
The programme requires some €4 million (Dh18.9m) of investment to set up but would result in as many as 100 jobs for nationals, Mr Sanchez said.
"Emal is a big gap in our Middle Eastern portfolio. I met today with the CEO and I told him I will pay a visit with him before September. They are just finalising phase two investment and we expect to be part of phase three investment by Emal at Kizad."
Mr Salmeen confirmed the meeting with Fives Group and said the discussions were at an early stage but very positive. He added that the prospect of providing high-tech jobs for UAE nationals was very appealing.
"Employing nationals is very important." he said. "For us it has always been very important to focus on companies that bring know-how rather than companies that want to do low-tech work. We reject 80 per cent of companies that apply to us just because they do not have the ambition to advance technology.
We would love to work with this French company and this is our mandate to facilitate and become an enabler for industrial groups."
Mr Salmeen added that Kizad was also holding talks in Paris with French companies from the steel industry and the food manufacturing industry about taking tenancies at the industrial zone.
This month Emal, a joint venture between the Abu Dhabi strategic investment company Mubadala Development and Dubai Aluminium (Dubal), said it would be adding a potline to its smelter complex at Kizad that will increase capacity from 800,000 tonnes a year (t/y) to 1.3 million t/y.
The US$3.8 billion Phase 2 expansion is slated for commissioning this December and will make Emal the world's fifth-largest aluminium producer.
jdoran@thenational.ae
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.”
Expert advice
“Join in with a group like Cycle Safe Dubai or TrainYAS, where you’ll meet like-minded people and always have support on hand.”
Stewart Howison, co-founder of Cycle Safe Dubai and owner of Revolution Cycles
“When you sweat a lot, you lose a lot of salt and other electrolytes from your body. If your electrolytes drop enough, you will be at risk of cramping. To prevent salt deficiency, simply add an electrolyte mix to your water.”
Cornelia Gloor, head of RAK Hospital’s Rehabilitation and Physiotherapy Centre
“Don’t make the mistake of thinking you can ride as fast or as far during the summer as you do in cooler weather. The heat will make you expend more energy to maintain a speed that might normally be comfortable, so pace yourself when riding during the hotter parts of the day.”
Chandrashekar Nandi, physiotherapist at Burjeel Hospital in Dubai
Overview
Cricket World Cup League Two: Nepal, Oman, United States tri-series, Tribhuvan University, Kathmandu
Fixtures
Wednesday February 5, Oman v Nepal
Thursday, February 6, Oman v United States
Saturday, February 8, United States v Nepal
Sunday, February 9, Oman v Nepal
Tuesday, February 11, Oman v United States
Wednesday, February 12, United States v Nepal
Game Changer
Director: Shankar
Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram
Rating: 2/5
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
Company%20Profile
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