The new buses have been introduced for the f1 race and will then be used to support the city bus system. Lauren Lancaster / The National
The new buses have been introduced for the f1 race and will then be used to support the city bus system. Lauren Lancaster / The National

Abu Dhabi bus users complain of fare-dodging passengers



ABU DHABI // Passengers are dodging fares on Abu Dhabi’s public buses – and those caught are not being punished.

The automated fare collection system called Hafilat – "buses" in Arabic – was launched in May last year to ensure quicker fare collection and reduce congestion while getting on and off the buses.

Coin boxes on buses were removed in October and replaced by the Hafilat smart cards, which are "charged' with money and need to be scanned when the passenger gets on and off.

However, many passengers are either ignoring the scanner or pretending to use a card.

Drivers admit they see people dodging a fare but say that “it is not our job to catch them”, and that it was the duty of inspectors to apprehend them.

Yet, even when fare-dodgers are caught they are let off with a warning, said a staff member at Abu Dhabi main bus terminal.

Fare-paying passengers are upset with those who do not pay.

“Many passengers board the bus and tell the driver they don’t have a card,” said Edna, a 61-year-old Filipina housewife.

“Others have cards but still need to recharge them. I think it’s unfair to those who buy or recharge their cards and pay for their fare.”

There are card validators at bus entrances and exits. The fare, calculated automatically based on the journey distance, is deducted from the card.

A bus fare within the city costs Dh2. Fares to the suburbs start at Dh2, plus five fils for each extra kilometre, with Dh5 the average fare. The intercity fare costs from Dh10 plus 10 fils a kilometre, with Dh25 being the average fare.

“Sometimes, passengers will tell the bus driver they forgot their bus card and offer cash,” said Michelle de la Cruz, 35, a Filipina. “While some drivers are lenient and allow them to board the bus without paying, others tend to refuse entry and ask them to buy a card.”

From his rear-view mirror, 50-year-old bus driver Hamza Abubaker has seen people entering from the back or middle doors without paying.

“I press one button to open three doors,” he said. “I can see them, but what can I do?”

Occasionally, some passengers pretend to tap their Emirates ID on the card scanners, according to Nader Khan, 34, a Pakistani who has driven bus numbers 11, 32, 54 and 7 for the past eight years.

“Many of them don’t pay but it’s not our job to catch them,” he said.

A bus driver, who did not want to be named, said it was the duty of inspectors to apprehend fare dodgers. Officials at the Department of Transport were not available for comment.

However, a staff member at the Abu Dhabi main bus terminal said fare dodgers were given a verbal warning.

Inspectors are equipped with portable card readers that allow them to check passengers’ Hafilat cards.

“For now, they will not be given a fine,” the staff member said. “Inspectors will just advise them to buy or recharge their Hafilat cards.”

rruiz@thenational.ae

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Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.

Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation. 

Education: Sagesse University, Beirut, Lebanon, in 2005.

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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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UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
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Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

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%3Cp%3EVara%20will%20cater%20to%20three%20categories%20of%20companies%20in%20Dubai%20(except%20the%20DIFC)%3A%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECategory%20A%3A%3C%2Fstrong%3E%20Minimum%20viable%20product%20(MVP)%20applicants%20that%20are%20currently%20in%20the%20process%20of%20securing%20an%20MVP%20licence%3A%20This%20is%20a%20three-stage%20process%20starting%20with%20%5B1%5D%20a%20provisional%20permit%2C%20graduating%20to%20%5B2%5D%20preparatory%20licence%20and%20concluding%20with%20%5B3%5D%20operational%20licence.%20Applicants%20that%20are%20already%20in%20the%20MVP%20process%20will%20be%20advised%20by%20Vara%20to%20either%20continue%20within%20the%20MVP%20framework%20or%20be%20transitioned%20to%20the%20full%20market%20product%20licensing%20process.%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECategory%20B%3A%3C%2Fstrong%3E%20Existing%20legacy%20virtual%20asset%20service%20providers%20prior%20to%20February%207%2C%202023%2C%20which%20are%20required%20to%20come%20under%20Vara%20supervision.%20All%20operating%20service%20proviers%20in%20Dubai%20(excluding%20the%20DIFC)%20fall%20under%20Vara%E2%80%99s%20supervision.%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECategory%20C%3A%3C%2Fstrong%3E%20New%20applicants%20seeking%20a%20Vara%20licence%20or%20existing%20applicants%20adding%20new%20activities.%20All%20applicants%20that%20do%20not%20fall%20under%20Category%20A%20or%20B%20can%20begin%20the%20application%20process%20through%20their%20current%20or%20prospective%20commercial%20licensor%20%E2%80%94%20the%20DET%20or%20Free%20Zone%20Authority%20%E2%80%94%20or%20directly%20through%20Vara%20in%20the%20instance%20that%20they%20have%20yet%20to%20determine%20the%20commercial%20operating%20zone%20in%20Dubai.%C2%A0%3C%2Fp%3E%0A
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