Heavy lorry traffic travelling at high speed is a danger on the Al Mafraq-Al Ghweifat highway.
Heavy lorry traffic travelling at high speed is a danger on the Al Mafraq-Al Ghweifat highway.

Highway upgrade promised



ABU DHABI // The most dangerous road in the country will receive a Dh40 million (US$11m) upgrade this year to make it safer, the Department of Transport and Abu Dhabi Police announced yesterday. Officials said the money would be used to make improvements all along the 327km Al Mafraq-Al Ghweifat highway, the lone land link between the UAE and Saudi Arabia.

Crashes on the road accounted for 14 per cent of all car accidents in the emirate in 2007, according to the department, which called the road the UAE's most dangerous. Improvements will include closing dangerous U-turns, installing solar-powered flashers at other U-turns, placing directional and warning signs along the road, and building speed humps in rest areas. Pedestrian crossings will be improved in the town of Sila.

"At the DoT we realise the importance of the Al Mafraq-Al Ghweifat highway, linking Abu Dhabi to the neighbouring regions," said Faisal al Suwaidi, executive director-highways. "We are also aware of the dangers that exist on this road. In co-operation with the Abu Dhabi traffic police, we are adopting critical measures to enhance safety and reduce the rate of accidents." Mohammed al Mazroui, a resident in Madinat Zayed in Al Gharbia, said he had narrowly avoided accidents on that stretch of road and blamed the danger on both the heavy presence of large lorries carrying freight and people making U-turns.

The ability to make U-turns along the motorway, where vehicles travel at speeds of 120kph and more, was a particular concern for Mr al Mazroui. "Most of the accidents are off the U-turn," he said. "They have to close it. They have to make a bridge. Drivers just make U-turns, they do not stop. You have to be careful. You have to see the street at 360 degrees." Under the plan for developing the road, overpasses and underpasses will be built at each junction, replacing the U-turns.

The department has shortlisted five international consortia that will design, build, finance and operate the highway. The road will be expanded to eight lanes up to the al Ruwais junction, and six lanes to the Saudi border. Police said yesterday they were also working to improve safety by increasing the number of radars, speed signs and police patrols along the road, particularly at areas known for accidents.

This year, police began installing solar-powered radars to measure vehicle speeds and transmit information about violations to a central processing centre. Twenty have been installed so far. Col Hussein al Harthei, director of the traffic engineering and road safety department of the Abu Dhabi Police, said officers would also be intensifying their efforts to reduce accidents. mchung@thenational.ae

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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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