Metro's three new stations quiet on first working day


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DUBAI // Three new Metro stations that opened on Saturday passed their first big test when the city returned to work yesterday. GGICO, Noor Islamic Bank and World Trade Centre provided commuters with an opportunity to reach previously inaccessible areas of the Dh29 billion (US$7.9bn) driverless public transport system. On his day off, Varghes Keechera made a trial run of the route he plans to take from his home in Satwa to his job in Mirdif City Centre. The 37-year-old Indian set off on a feeder bus to World Trade Centre station, then caught the Metro to Rashidiya.

"You save a lot of time on the Metro," said Mr Keechera, an electrical engineer, after his trial run. "Buses can take an hour. When the traffic's bad, taxis take an hour." His trip had taken 30 minutes by Metro, he said. Most important, however, was the money he would save. He reckoned that by not laying out Dh60 (US$16) a day on taxis, he would save more than Dh1,000 a month. "I'm going to save so I can send the money to my family," said Mr Keechera, whose wife and two young children live in India.

The new stations were generally quiet. At 8.30am, no passengers got on or off a train that stopped at Noor Islamic Bank, formerly known as Al Quoz. Around noon, there were only about half a dozen passengers using World Trade Centre. At least one escalator and the air conditioning in the footbridge spanning Sheikh Zayed Road were not operating. Officials at the Roads and Transport Authority (RTA), Dubai's transportation regulator, did not respond to requests for comment.

However, such glitches did not dampen the enthusiasm of Mansour Sajjadi, 54, a businessman visiting from London. He was pleased with the advantages that the station offered. "I'm here on business every couple of months, and since the Metro's opened it's become a lot easier to travel," he said. "Of course, it's easier to get taxis now than it was two years ago. But the Metro is inexpensive and there are more stations opening, so it's a more convenient option."

Some passengers using the new stations were critical of the RTA. A 26-year-old Portuguese man, who identified himself only as Manuel, said the regulator should provide better information. "Their customer service is very poor," he said. "You try to call and no one gets back to you." But because he was unable to obtain a driving licence, the Metro was "useful", he said. The three new stations bring the number in service on the Red Line to 21 of the 29 planned stops. hnaylor@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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One of its main goals is to provide permanent treatment solutions for veterinary related diseases. 

The taxidermy centre was established 12 years ago and is headed by Dr Ulrich Wernery. 

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Enjoys rock groups Scorpions and Metallica 

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