Companies that were planning to open offices in a US$300 million (Dh1.1 billion) business park development being built by Tecom in Malta are holding back because of the instability in Libya and the wider region.
SmartCity Malta, which is focused on attracting information and communication technology and media companies, is an office park development similar to Internet City and Media City in Dubai, also developed by Tecom Investments.
SmartCity is a conglomerate promoted by Tecom, part of Dubai Holding, to develop and manage a global network of self-sustained business townships to foster the knowledge economy.
The first SmartCity Malta office block opened in October, but most of the park is still a construction site. The project is the largest job-creation initiative in the country, with 6,000 workers to be based there eventually, according to Tecom.
"There is some hesitation in terms of decision-making," said Fareed Abdulrahman, the chief executive of SmartCity. "Lots of companies have just put decisions on hold until they see how things go.
"A lot of companies cover Libya from Malta. Now there's no business at all. Everything has stopped. But when things come back they will continue doing business in Malta.
"I think most of those countries that have their decisions on hold, they are just waiting to see a little stability in Libya and other North African countries."
He said several business from Dubai Media City and Internet City had been considering setting up branches in Malta as their client base in the region grew, with the park being positioned as a strategic location to serve North Africa as well as parts of Europe.
"Suddenly, now things have changed since December."
The park, a joint venture with the government of Malta, is to include office blocks, apartments and villas, hotels, shops and an amphitheatre, based around an artificial lagoon. But the start of work on the residential units is likely to depend on an improvement in the Libyan situation.
"We are really going to have to look at this very carefully," said Mr Abdulrahman. "Things are not stable around Malta. The residential and the hotel hasn't been our priority. If things go well, we might start the residential this year."
The project is part of SmartCity's plans to expand globally. Its other project abroad is SmartCity Kochi in Kerala, India, which is under development.
Mr Abdulrahman said the company was looking at the possibility of another location in Europe as well a second in India.
"Also, we are very much looking at Asia-Pacific. We are not looking at China for the time being. But it will be an interesting location and especially for low-cost operations."
Malta came out ahead of competition from Greece, Cyprus and the south of France as SmartCity looked for a location abroad.
"Besides the geographical location, it does offer a lot of benefits for companies and in particular for companies coming to set up and looking for either a regional office or a branch," said Suleiman al Riyami, the business development manager at SmartCity Malta.
Operating costs were lower than in many other countries, and the government provided tax breaks, he said. The country's official language being English was also an important factor.
About a dozen companies had signed up so far, including Cisco and HP, and some were expected to start fitting out their offices in the next few weeks, he said.
"Obviously we had concerns when the issue broke out, in terms of the difficulties of Dubai Holding," said Tonio Fenech, Malta's minister of finance, economy and investment. "But clearly, they came out very committed to the project. The funding was already secured for the project."
Tecom also has a 60 per cent stake in the Malta telecoms operator Go.
Mr Abdulrahman remains optimistic about the project's long-term potential. "The way we see it, yes it will be slow for now, but we see it long-term. It will be very good for SmartCity."
rbundhun@thenational.ae
Company%20profile
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Company%20Profile
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Citadel: Honey Bunny first episode
Directors: Raj & DK
Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon
Rating: 4/5
The biog
Favourite films: Casablanca and Lawrence of Arabia
Favourite books: Start with Why by Simon Sinek and Good to be Great by Jim Collins
Favourite dish: Grilled fish
Inspiration: Sheikh Zayed's visionary leadership taught me to embrace new challenges.
The specs
Engine: 1.5-litre 4-cylinder petrol
Power: 154bhp
Torque: 250Nm
Transmission: 7-speed automatic with 8-speed sports option
Price: From Dh79,600
On sale: Now
The%20specs
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Eyasses squad
Charlie Preston (captain) – goal shooter/ goalkeeper (Dubai College)
Arushi Holt (vice-captain) – wing defence / centre (Jumeriah English Speaking School)
Olivia Petricola (vice-captain) – centre / wing attack (Dubai English Speaking College)
Isabel Affley – goalkeeper / goal defence (Dubai English Speaking College)
Jemma Eley – goal attack / wing attack (Dubai College)
Alana Farrell-Morton – centre / wing / defence / wing attack (Nord Anglia International School)
Molly Fuller – goal attack / wing attack (Dubai College)
Caitlin Gowdy – goal defence / wing defence (Dubai English Speaking College)
Noorulain Hussain – goal defence / wing defence (Dubai College)
Zahra Hussain-Gillani – goal defence / goalkeeper (British School Al Khubairat)
Claire Janssen – goal shooter / goal attack (Jumeriah English Speaking School)
Eliza Petricola – wing attack / centre (Dubai English Speaking College)
COMPANY%20PROFILE%20
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The%20Roundup%20%3A%20No%20Way%20Out
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Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
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.
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.”
COMPANY%20PROFILE
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The specs
Engine: 2.3-litre, turbo four-cylinder
Transmission: 10-speed auto
Power: 300hp
Torque: 420Nm
Price: Dh189,900
On sale: now
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
Famous left-handers
- Marie Curie
- Jimi Hendrix
- Leonardo Di Vinci
- David Bowie
- Paul McCartney
- Albert Einstein
- Jack the Ripper
- Barack Obama
- Helen Keller
- Joan of Arc
SPECS
Engine: Two-litre four-cylinder turbo
Power: 235hp
Torque: 350Nm
Transmission: Nine-speed automatic
Price: From Dh167,500 ($45,000)
On sale: Now
Stree
Producer: Maddock Films, Jio Movies
Director: Amar Kaushik
Cast: Rajkummar Rao, Shraddha Kapoor, Pankaj Tripathi, Aparshakti Khurana, Abhishek Banerjee
Rating: 3.5
Company%C2%A0profile
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Business Insights
- Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
- The introduction of tariffs could hinder the US's clean energy initiatives by raising input costs for materials like nickel
- US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs
