Dubai Municipality awards conference centre contract



Dubai Municipality has awarded a contract to build a new conference centre and arena at a cost of Dh1.8 billion.

Hussain Lootah, the director general of Dubai Municipality, said that the conference centre was one of the most important tourism projects set to be carried out in the emirate in the run-up up towards hosting the World Expo 2020.

The convention centre will sit on a 592,000 square foot site in Al Jaddaf, facing Dubai Festival City.

The municipality did not state to whom it has awarded the contract to build the complex, nor did it give a date for when the project will be completed.

It will contain the 10,000-cap­acity Sheikh Rashid Hall conference venue, which will be a 190,000 sq ft indoor arena with a height of 98ft. It will contain theatre-style seating and will be built by the creek for international conferences, seminars, music concerts and shows.

The hall can be divided into three levels and will have cinema screens and high-tech videoconferencing facilities. Five sub-halls – each of which are 10,500 sq ft, can hold up to 1,000 people. The site will also contain three towers (two hotels and one office) that will link dir­ectly to the conference centre via a covered, air-conditioned concourse building containing shops and restaurants.

The three adjoining towers will house a 33-storey, three-star hotel, a 48-floor four-star hotel and a 36-floor office block. The complex will also house 700,000 sq ft of basement parking, capable of accommodating 1,800 cars.

Mr Lootah said that the facility would give Dubai the opportunity to host major world events, adding that the Creekside location lent itself to both business and tourism events. Oliver Plunkett, the managing director of the engineering consultancy Buro Happold, said that Dubai is in the process of building several important facil­ities that are helping to posi­tion it as a global hub.

“Dubai has lots of components of a world-class city, but it doesn’t yet have anything like that,” he said.

He said that Dubai had established itself as a regional base for exhibitions and trade shows, but added that in other parts of the world, convention centres often operate in cities that leverage potential attendees for conferences and shows from neighbouring towns and cities.

mfahy@thenational.ae

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The language of diplomacy in 1853

Treaty of Peace in Perpetuity Agreed Upon by the Chiefs of the Arabian Coast on Behalf of Themselves, Their Heirs and Successors Under the Mediation of the Resident of the Persian Gulf, 1853
(This treaty gave the region the name “Trucial States”.)


We, whose seals are hereunto affixed, Sheikh Sultan bin Suggar, Chief of Rassool-Kheimah, Sheikh Saeed bin Tahnoon, Chief of Aboo Dhebbee, Sheikh Saeed bin Buyte, Chief of Debay, Sheikh Hamid bin Rashed, Chief of Ejman, Sheikh Abdoola bin Rashed, Chief of Umm-ool-Keiweyn, having experienced for a series of years the benefits and advantages resulting from a maritime truce contracted amongst ourselves under the mediation of the Resident in the Persian Gulf and renewed from time to time up to the present period, and being fully impressed, therefore, with a sense of evil consequence formerly arising, from the prosecution of our feuds at sea, whereby our subjects and dependants were prevented from carrying on the pearl fishery in security, and were exposed to interruption and molestation when passing on their lawful occasions, accordingly, we, as aforesaid have determined, for ourselves, our heirs and successors, to conclude together a lasting and inviolable peace from this time forth in perpetuity.

Taken from Britain and Saudi Arabia, 1925-1939: the Imperial Oasis, by Clive Leatherdale

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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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