Sharjah roads more congested but safer



SHARJAH // A sharp increase in the number of cars in Sharjah is leading to serious congestion in the emirate, police say. Col Arif al Shamsi, the head of the Sharjah Police Traffic Department, said police were doing everything they could to ease the flow of traffic, but that the increase in vehicles presented a huge challenge.

According to official statistics, 89,467 cars were registered in the emirate in the first half of the year. In total, 30,663 new cars were registered in the emirate in the first six months of this year, compared to 24,479 during the same period in 2007. In 2006, the number stood at 21,064. Over the same period, the department issued 13,023 driving licences. Col Shamsi attributed the increases to rapid development. "There has been a great increase in the economy, business, investment and more residents in the emirate this year than any other year."

Drivers from outside the emirate were adding to the congestion. "Our surveys have shown that most of the cars that are using the emirates roads are licensed by other emirates, not Sharjah." He expects things to improve when the Ministry of Interior's ban on the transfer of ownership of cars 10 years and older goes into effect in January. In Sharjah alone, the new rule is expected to force 20,000 vehicles off the roads.

Despite the increase in traffic, there has been a reduction in road violations. In the first half of this year, 347,718 breaches were registered, compared to 506,346 for the same period last year, with Sharjah City accounting for 60 per cent of the infringements. Failure to follow traffic signals was the most common offence, with 23,121 incidents. Dangerous overtaking followed, with 12,768 violations.

There were 346 accidents in the first half of the year, killing 87 and injuring 479 people. Among the dead were 19 Emiratis, 25 Pakistanis and 14 Indians. In the corresponding period in 2007, there were 461 accidents that left 99 people dead and 733 others injured.

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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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Name: Almnssa
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Founder: Areej Selmi
Based: Gaza
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Investments: Grants/private funding
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Zakat: an Arabic word meaning ‘to cleanse’ or ‘purification’.

Nisab: the minimum amount that a Muslim must have before being obliged to pay zakat. Traditionally, the nisab threshold was 87.48 grams of gold, or 612.36 grams of silver. The monetary value of the nisab therefore varies by current prices and currencies.

Zakat Al Mal: the ‘cleansing’ of wealth, as one of the five pillars of Islam; a spiritual duty for all Muslims meeting the ‘nisab’ wealth criteria in a lunar year, to pay 2.5 per cent of their wealth in alms to the deserving and needy.

Zakat Al Fitr: a donation to charity given during Ramadan, before Eid Al Fitr, in the form of food. Every adult Muslim who possesses food in excess of the needs of themselves and their family must pay two qadahs (an old measure just over 2 kilograms) of flour, wheat, barley or rice from each person in a household, as a minimum.

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Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
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Name: HyperSpace
 
Started: 2020
 
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Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners