A store worker use candle to light his store in Industrial Area 1 after several parts of Sharjah fell into darkness after a power outage.
A store worker use candle to light his store in Industrial Area 1 after several parts of Sharjah fell into darkness after a power outage.

Blackouts may force Sharjah residents out



SHARJAH // Continuing power outages have left Sharjah residents wondering how much longer they can bear to stay in the dark - or even whether they will stay in the emirate. Blackouts yesterday hit six industrial areas and residential neighbourhoods such as Al Nahda, Al Qasimia, Yarmouk, Ghuwair for as long as three hours during the middle of the day.

On Monday, Rolla, Al Nabaa, Butina, Makhmour were without power between 9.30am and 4pm. Power failures have plagued the emirate for more than a month, and for some residents, they represented the last straw. Ahmed Ibrahim, an owner of the Dirham Real Estate agency in Al Nabaa, said five clients refused to renew their tenancy contracts, saying they were looking for a house where electricity was guaranteed.

"The problem is this electricity issue has been miscommunicated," he said. "Residents don't know who is responsible and who is not. They keep on coming to our offices quarrelling with us, but what can I do?" Ayman al Sharqawi said he was planning to leave Sharjah for Dubai if he could find a house with power within his budget. "I have already asked my wife to start checking the classifieds and make some calls," he said. "My tenancy contract is due next month and I don't think I would renew it with these power problems."

Mr al Sharqawi said he had been in Sharjah for 27 years but had never witnessed problems such as these, even in the old days when development was slow. "If they can't meet the power demand now, would they be able to meet it in future with the rapid development under way?" he asked. Abdul Aziz Baluk, who lives in a Sharjah industrial area, said he was considering moving to Ajman if the electricity problem was not resolved.

Mr Baluk works in Dubai, and had left a Dubai apartment two years back because of the skyrocketing rents there. "I am not certain how I will be driving from Ajman to work. It's quite a long route, and daily, but it's better than staying in a non-air-conditioned house," he said. Many residents say they understand the Sharjah Electricity and Water Authority (SEWA) has a power supply problem but are unhappy with the way the crisis has been handled.

"They should at least make a clear schedule and inform the public of the timings they would have electricity and when not." "Power just goes off abruptly and disrupts all our daily programmes," said another, Ausi al Baghdad. Mr Baghdad said his six-year-old daughter came home from school and had to climb the stairs up to the 15th floor. Her mother, who is seven months pregnant, was already breathing hard after coming down the stairs to collect her.

They stayed in the building reception for about an hour and started to climb back up, sitting for about 10 minutes to rest every after three floors. Another concern for residents is the lack of people to take calls at SEWA emergency numbers. A SEWA official said the emergency line was jammed with calls whenever there was an outage and the staff there could only take so many. Mansour al Mashaari, a resident of another industrial area, complained the situation was unfair since he paid his electricity bills on time.

"There are days when the power goes in the middle of the night and returns after hours and there are days when the power goes continuously for days; we don't know what to expect each day," he said. On Monday, officials at the Dubai Islamic Bank branch in Al Nabaa announced that power had gone off and asked about 50 people waiting for services to leave. Several clients had been waiting for about an hour.

Rashid Bakkar said it was the second time in less than a month he failed to make his telebanking transfer because of the power crisis at the branch. "Every time I come to transfer some money to my wife's account in Egypt the power in this bank stays for only a few minutes and it goes. "Last week I didn't send and this time I have to find a taxi and go to King Faisal main branch because I can't keep postponing."

Traffic lights were not functioning Monday and yesterday in Industrial Area 4 and traffic was moving at a snail's pace in the morning. Sharjah Police had to intervene on some intersections and close some roads with barricades. They advised motorists to use alternative routes. ykakande@thenational.ae

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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Formula Middle East Calendar (Formula Regional and Formula 4)
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
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia