From August 12, new rules will govern speed limits on the roads of Abu Dhabi. Silvia Razgova / The National
From August 12, new rules will govern speed limits on the roads of Abu Dhabi. Silvia Razgova / The National

Scrapping the buffer speed limit on Abu Dhabi's roads is a step in the right direction



Last year, Abu Dhabi issued 4.6 million fines to motorists on its roads. Only one traffic violation accounted for nearly 80 per cent of those fines: speeding. This context leaves no room for doubt that the decision by Abu Dhabi to abolish the buffer on speed limits is imperative to improving road security. Currently, the roads have an initial speed limit that is supplemented with a grace limit that permits drivers to raise their speeds by up to 20 kph. Remaining within the buffer will not invite a penalty for violation, but absence of a uniform speed limit means that confusion prevails – and confusion on the roads can be fatal.

The decision to scrap the buffer, however, was not arrived at abruptly. Motorists are accustomed to the upper limit, and authorities in the capital carried out detailed studies and engaged in consultation to determine how best to phase it out and ease drivers into adopting uniform limits, which will come into effect on August 12. Thereafter, any driver speeding even by a kilometre above the limit will be penalised. Abu Dhabi Police, the Department of Transport and the Urban Planning Department are confident that the new limit will enhance road safety and reduce crashes.

A comprehensive campaign is planned to raise awareness of the new rules; there will be posts on social media, displays on public transport vehicles and taxis, and ads in the newspapers. But the sheer number of vehicles on the roads – combined with entrenched driving habits – calls for caution and prudence in enforcing the new limits. A brief introductory phase – during which drivers caught breaching the limit are informed of the change and given warnings – may leave little room for grievances about the change and deter drivers from pleading ignorance (although ignorance is no excuse). Despite the teething problems that may crop up, the scrapping of the buffer is a welcome move in the direction of safety.

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Director: Abhishek Chaubey

Producer: RSVP Movies, Azure Entertainment

Cast: Sushant Singh Rajput, Manoj Bajpayee, Ashutosh Rana, Bhumi Pednekar, Ranvir Shorey

Rating: 3/5

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The specs

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Engine: 6.2-litre V8

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Engine: 5.6-litre V8

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Power: 400hp

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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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Company Profile

Company name: Yeepeey

Started: Soft launch in November, 2020

Founders: Sagar Chandiramani, Jatin Sharma and Monish Chandiramani

Based: Dubai

Industry: E-grocery

Initial investment: $150,000

Future plan: Raise $1.5m and enter Saudi Arabia next year

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