The Middle East is undergoing rapid transformation – at different rates in different parts, but irresistible everywhere and in distinctive ways across this very large, diverse, dynamic and youthful region. This transformation is focusing on creating sustainable knowledge economies and societies that facilitate and enable a high quality of life for citizens, residents and visitors, as well as a rapidly growing, aspirational young population.
In the dynamic Gulf countries, we see strong and visionary leadership backed by dynamic, action-orientated programmes, with clear directions and ambitious objectives. These objectives are being set through comprehensive visions for accelerated and sustainable economic development enabled by advanced technology and with “smart” urban environments providing the focal point.
In Dubai, which is rapidly emerging as one of the world’s smartest cities, we are at the epicentre of a future vision of urban development in the region, embracing innovation in all its forms to create a leadership position among the world’s most successful cities. Dubai is attracting the best talent in the world and enabling its citizens, residents and visitors to experience a high quality of life, encapsulated in the UAE’s very fundamental objective: happiness.
In a world economy increasingly defined and influenced by the “mega cities” or specialised cities, urban planning and development is a key driver of competitive advantage. Effective mobility through efficient public transport – one of the main critical success factors in any urban environment – lies at the heart of the city plan.
Traditionally, the development of transport infrastructure has been the responsibility of governments and public sector agencies. But the scale of investment needed – especially for fast-growing urban environments such as those in the Gulf – may now exceed available budgets.
Several important trends and opportunities are arising from this situation.
Firstly, the scale of investment needed for public transport systems means that a wide range of project opportunities is emerging for long-term private investors in greenfield and brownfield developments.
Urban planners are using a cluster approach in prioritising transportation investments to solve specific problems, and transport companies are playing a pivotal role in supporting the competitiveness of these industry clusters.
Urban planning can be closely coordinated not just with the transport network but also with the financing of associated property development, both residential and commercial in transit-orientated developments.
Continued investment in information and communications technology (ICT) and public transport – the virtual and physical infrastructure that connects the physical and virtual worlds – will shape the urban environment and define sustained economic success.
The benefits of clustering firms of different sizes in the same industry in urban areas are well documented. Yet to achieve the best possible economic growth for the designated area, transport companies play a pivotal role – through understanding the transport needs of firms within those clusters, then providing the transport networks and services that answer their needs, while influencing the overall competitiveness of the cluster.
An example is the development of the aviation industrial areas around the new Dubai South development. In Dubai South, the government actively encourages the establishment of aviation-related industries in the newly developed area around Dubai’s Al Maktoum International Airport – an aerotropolis and global economic hub.
These transit-orientated developments will play a key role in any effectively designed transport infrastructure.
In South Africa, Gautrain – a mass rapid transit railway system in Gauteng region – links Johannesburg and Pretoria in a corridor offering commuters a viable alternative to road transport. Now, 1.4 million passengers a month save the equivalent of 41 working days a year per passenger; saving time and improving their quality of life.
In the Gulf, new smart cities are rising from the desert and this greenfield opportunity is an invitation to shape and build these new urban environments on the platforms of the key networks for the 21st-century city – high speed connectivity, connecting people and things, and physical transport links providing the mobility that drives the competitive advantage of the future city.
Continued investment in ICT and public transport will shape the urban environment and define sustained economic success.
The city of the millennials is a place where physical mobility matches online connectivity, and the speed and ease of connectivity are seamless. The experience it offers is safe, secure, effective and smart.
If the IT network is the neural pathway of the new smart city, then the physical transport system provides its beating heart and arteries.
Laurence Batlle is chairwoman of the executive board of RATP Dev – the international arm of RATP, the French public transport operator
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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.”
A list of the animal rescue organisations in the UAE
Sam Smith
Where: du Arena, Abu Dhabi
When: Saturday November 24
Rating: 4/5
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Malcolm & Marie
Directed by: Sam Levinson
Starring: John David Washington and Zendaya
Three stars
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
Nepotism is the name of the game
Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad.
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