The Lamborghini Aventador LP 700-4 in Geneva.
The Lamborghini Aventador LP 700-4 in Geneva.

Business

New models go into overdrive in Geneva

The Life: The National's Neil Vorano heads to the International Geneva Motor Show for this year's latest offering.

Neil Vorano

March 09, 2011

The International Geneva Motor Show is one of the most anticipated car exhibitions every year, and for good reason.

With Switzerland home to not a single major car factory, all the major brands try to upstage each other with model debuts and wild concept vehicles. There are always surprises to be found.

First held in 1905, the show has helped launch models such as the Jaguar E-Type in 1961, the Lamborghini Countach in 1971 and the Audi Quattro in 1980. And this year's version, which ends on Sunday, is no different.

One aspect that makes it enjoyable is its layout; the Geneva Palexo is a single large hall with two levels. It is easy to wander, row by row, and take in all the fancy cars, displays of new technology and, of course, the "booth professionals".

It seems that every car maker has rolled out something new and spectacular. Of course, many manufacturers, such as Ford, Kia and Saab, are showing the small to medium-sized sedans that will be seen on roads around the world.

But the real attractions are the models that get a petrol-head's blood pumping. Lamborghini has introduced its Aventador, the successor to its nine-year-old Murcielago. Pagani, the niche Italian car maker, has brought along the Huayra, a masterpiece of horsepower and design, and just the second car the company has produced. And Ferrari has chosen Geneva to show off its new FF, the company's first all-wheel-drive, four-seat grand tourer.

But it's certainly not all about high-horsepower sports cars here. As with just about every car show in recent years, electric cars and other alternative-fuel vehicles are everywhere in the Palexo. The green revolution seems to have overtaken performance here and there is a glimpse into the future on just about every stand. Toyota has introduced its new Prius+, a seven-seat version of its popular hybrid sedan, and Mercedes is displaying its hydrogen fuel cell-powered F-Cell, based on its A-Class cars. Even Rolls-Royce has an electric-powered Phantom, the 102EX, on its stand.

But with the Swiss being so famously neutral, it really shouldn't be a surprise to see such a melding of petrol-guzzling luxury and sports cars and battery-powered eco-vehicles on the same floor.

More from Neighbourhood Watch:
Company profile

Name: Tharb

Started: December 2016

Founder: Eisa Alsubousi

Based: Abu Dhabi

Sector: Luxury leather goods

Initial investment: Dh150,000 from personal savings

 

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.”

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
UAE currency