Young boys surf the internet at The Warrior internet in Abu Dhabi.
Young boys surf the internet at The Warrior internet in Abu Dhabi.

Fibre optics group calls for controls



Telecommunications regulators should enforce minimum requirements for the speed and quality of fibre-optic broadband internet systems, a new regional industry body says. Fibre-to-the-home (FTTH) internet systems, which can offer download speeds up to 500 times faster than the regional average, are being offered by telecoms companies and property developers. If introduced properly, they can provide practically unlimited bandwidth to homes and businesses, allowing for simultaneous delivery of services such as high-definition television, internet telephone, games and ultra-fast internet.

But not enough was being done to ensure the systems would be able to take full advantage of new technology, said Faris Awartani, the chairman of the Middle East group of the FTTH Council, an international industry body. "Service levels and quality are the key issues here," Mr Awartani said after the inaugural meeting of the group in Bahrain this week. "What we want to do is to work with regulators to encourage the right direction for this technology."

State-owned telecoms companies such as Etisalat and Saudi Telecom are behind much of the introduction of fibre-optic cable across the GCC. But Mr Awartani said property developers, which often build communications networks within new developments, and regulators, which are leaning towards liberalisation, were equally important in the process. "Developers are not particularly concerned about technicalities; they are interested in selling units," he said. "So we need to make the developers understand that this will help them sell units, because there is a high public awareness about these services."

While telecoms companies were strongly committed to the FTTH systems, Mr Awartani said his group would look to help them learn from industry experience in Europe and North America, where the FTTH Council was well represented. "Telcos don't need convincing about this," he said. "But what we have is information about experiences worldwide, engineering and standards. This is an area where we can really help them."

Membership of the regional group consists mainly of businesses that provide services to telecoms operators. Mr Awartani's company, Moseco, works on infrastructure projects for regional operators such as Kuwait's Zain. The two UAE telecoms operators attended the day of workshops that accompanied the new group's launch on Sunday. "They are very keen and interested, very focused on getting the right information and getting work done together," said Joeri Van Boegart, the president of the European FTTH Council, which is the parent of the Middle East group.

Mr Van Boegart, who visited Dubai last year in part to build interest in the Middle East group, said fibre-optic internet rollouts were ideal for the economic stimulus plans being considered by governments around the world. "It really is one of the fastest ways to turn stimulus money into real impact - economic and social change," he said. "The benefits are felt straight away in so many industries, from education to retailing, entertainment, so many places. This isn't just another kind of copper wire, it is a whole new generation."

tgara@thenational.ae

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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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1. Mathieu van der Poel (NED) Alpecin-Fenix 4:18:30

2. Tadej Pogacar (SLV) UAE Team Emirates 0:00:06

3.  Primoz Roglic (SLV) Jumbo-Visma 0:00:06

4. Wilco Kelderman (NED) Bora-Hansgrohe 0:00:06

5. Julian Alaphilippe (FRA) Deceuninck-QuickStep 0:00:08

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Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
MATCH INFO

Leeds United 0

Brighton 1 (Maupay 17')

Man of the match: Ben White (Brighton)

A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

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
Scoreline

Syria 1-1 Australia

Syria Al Somah 85'

Australia Kruse 40'

The White Lotus: Season three

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Losses: 4

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The specs

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Torque: 520Nm at 1,500-3,000rpm

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Fuel consumption: 8.0L/100km

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On sale: now

Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

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Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
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Three stars

Company profile

Name: Fruitful Day

Founders: Marie-Christine Luijckx, Lyla Dalal AlRawi, Lindsey Fournie

Based: Dubai, UAE

Founded: 2015

Number of employees: 30

Sector: F&B

Funding so far: Dh3 million

Future funding plans: None at present

Future markets: Saudi Arabia, potentially Kuwait and other GCC countries

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The five pillars of Islam

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3. Hajj

4. Shahada

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BUNDESLIGA FIXTURES

Friday Stuttgart v Cologne (Kick-off 10.30pm UAE)

Saturday RB Leipzig v Hertha Berlin (5.30pm)

Mainz v Borussia Monchengladbach (5.30pm)

Bayern Munich v Eintracht Frankfurt (5.30pm)

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Borussia Dortmund v Schalke (5.30pm)

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