Michael Masi axed as Formula One race director after Abu Dhabi GP controversy


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Michael Masi has been dropped as Formula One race director after the controversial Etihad Airways Abu Dhabi Grand Prix that saw Max Vertappen pip Lewis Hamilton for the world title.

The news was confirmed by FIA president Mohammed bin Sulayem two months and five days after last season’s finale at Yas Marina Circuit.

Masi's future was thrown into doubt after he altered the safety car procedure to allow for a last lap of racing that cost Mercedes' Hamilton a record eighth title and handed a first to Red Bull's Verstappen.

Masi decided only the lapped cars between race-leading Hamilton and second-placed rival Verstappen had to get out of the way after a late-race crash, allowing Verstappen to pass the Briton on the last lap, which left the British driver saying the race was “manipulated” in Red Bull's favour.

A report into the failings at Abu Dhabi will be published at the season-opening race in Bahrain on March 19.

Masi, offered a new position within the FIA, will be replaced by Eduardo Freitas and Niels Wittich in a total restructure of race control.

FIA president Bin Sulayem said: “I would like to inform you that a new race management team will be put in place starting in Barcelona for the test session.

“Niels Wittich and Eduardo Freitas will act alternatively as race director, assisted by Herbie Blash as permanent senior adviser.

“Michael Masi, who accomplished a very challenging job for three years as Formula One race director following Charlie Whiting, will be offered a new position within the FIA.”

Bin Sulayem, elected as president just days after the Abu Dhabi race, also revealed the sport will use a Video Assistant Referee, similar to the one seen in football, and said communication between the pit wall and the race director will no longer be aired live on television.

“With this plan, FIA opens the way for a new step forward in Formula One refereeing,” he added. “Without the referees, there is no sport. Respect and support of the referees is in the essence of the FIA.

“That is why these structural changes are crucial in a context of strong development and the legitimate expectations of drivers, teams, manufacturers, organisers, and, of course, the fans.”

The Emirati, who was elected the FIA's first non-European president, said the changes had been presented at a meeting of the F1 Commission on Monday where they were unanimously supported by the teams and F1 chief executive Stefano Domenicali.

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.”

Key figures in the life of the fort

Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.

Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.

Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.

Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.

Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.

Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.

Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.

Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.

Sources: Jayanti Maitra, www.adach.ae

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Updated: February 17, 2022, 3:05 PM