AlixPartners said that when the 1,517 people it surveyed were presented with the attributes of self-driving cars, 73 per cent said they would want autonomous vehicles to take over all their driving. Mark Wakefield, the head of the consulting company’s automotive practice, says 90 per cent would let a driverless car handle their commute if they could occasionally take the wheel.
The results go against several recent studies showing as many as three-quarters of respondents weren’t ready to give up the wheel. The University of Michigan Transportation Research Institute said last month that just 16 per cent of Americans would prefer to ride in an autonomous vehicle, while 46 per cent wanted nothing to do with robot cars.
Consumer acceptance is critical for carmakers and tech giants, such as Alphabet’s Google, which are investing billions in driverless cars they plan to put on the road by 2020.
“It’s worth remembering, commuting sucks,” Mr Wakefield says. “Autonomous driving increases the economic utility of the commuter and it makes their life better … They like that.”
The average urban commuter in the US wastes 42 hours a year stuck in traffic jams, according to a report last year from the Texas Transportation Institute (TTI), so it’s easy to understand why driverless cars are becoming a viable option. TTI also estimates that motorway congestion costs $160 billion a year, including from lost productivity, petrol burnt while idling in traffic and additional wear and tear on vehicles.
Mr Wakefield says that that carmakers were saying, “when we put people in these cars, they adore them”. He says: “They freak out the engineers because they get so comfortable that the engineer sitting beside them has to say, ‘You may want to put your hands on the wheel’.”
q&a luxury players lead lines
Keith Naughton outlines the future for driverless cars:
When will driverless cars realistically become an option for the morning commute?
The first cars capable of talking to each other to warn of traffic hazards and keep a safe distance are hitting the road this year. Fully autonomous vehicles may be navigating cities in five to 10 years. They will hit an inflection point in 2020 when they begin arriving on roads, according to AlixPartners. By then, the market for autonomous-related components, such as systems that steer wandering cars back in their lanes or automatically navigate through stop-and-go-traffic, could surpass US$20 billion, the company says. Self-driving cars, which drive more efficiently and safely, could save $325bn by 2020 by avoiding accidents and reducing fuel costs, it says.
Who are the leading players?
Luxury lines lead: BMW is rolling out a car that can park itself, Cadillac has a model coming that drives hands-free on the motorway, while Mercedes and Audi already offer models that can pilot through a traffic jam while only asking its human minder to touch the steering wheel occasionally.
Who else is in the race?
Tech giants Google and Apple. Google, for example, is teaming up with Fiat Chrysler Automobiles to develop about 100 self-driving Chrysler minivans.
What potential issues could commuters face?
The question of liability remains unanswered. When a car on autopilot causes an accident, who is at fault? Automakers also have yet to design a connected car that cannot be hacked, raising security concerns and dystopian scenarios of robot cars run amok. A recent fatal accident involving a Tesla sedan driving on autopilot was a reminder of the potential challenges ahead.
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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.”
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
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UAE currency: the story behind the money in your pockets