'For Abu Dhabi, we have done nothing'



When Abu Dhabi looks to the future, it is expressed in projects such as the Louvre and Guggenheim on Saadiyat, the Formula One track on Yas Island and Masdar. Half a century ago, a debate was taking place that was just as crucial to the development of the capital. In those days, Abu Dhabi was little more than a collection of palm leaf dwellings clustered around the Ruler's Fort, and while the projects being considered were less grandiose, their impact on civil society would be just as momentous.

On Oct 25 1955 a confidential memo sent by Her Majesty's Political Agency, the British presence in what were then known as the Trucial States, set out the plans in full. Talks had taken place with the then ruler, Sheikh Shakbut, and his brothers Sheikh Zayed, later to become President of the UAE, and Sheikh Hazza. According to the author of the memo, JP Tripp: "These projects were extremely costly and, in the case of drilling, uncertain to produce results and that HMG (Her Majesty's Government) would not, therefore, be likely to finance.

"After a little thought, the Ruler replied that he could not, at present, spare anything more for development. Once oil was discovered, however, he would take on the entire financial burden of development himself. "It did not take long to rule out road development. None of the three brothers could see any great need for it at present and I agree with them. The Dubai-Abu Dhabi and Abu Dhabi-Tarif roads are in good condition, the Oil Company grader having levelled out most of the corrugations.

"Shakbut, Hazza and Zaid agreed that a school and small dispensary were prime necessities. Zaid was keen to see a police force created and Shakbut said that he would welcome our suggestions for improving his courts ? they feel, and I agree, that we should plan in terms of the following projects. "Water development ? a small dispensary to be constructed in Abu Dhabi town, manned by an Arab and a Pakistani ? a school to be built on the lines of that at Sharjah, staffed if possible, by local teachers. A small police force of, say, 60-80 men ? the possible construction of a proper courtroom, or, at least, the provision of equipment for such a courtroom, proceeded by advice on court procedure generally.

"If no oil is discovered in Abu Dhabi this year, I feel that Shakbut should receive prior consideration in our allocation of development funds. Sharjah has its school, Dubai its hospital? Ras al Khaimah its wells and agriculture scheme which will presumably benefit Ajman and Umm al Qaiwain. But for Abu Dhabi we have done absolutely nothing. The time has surely come to start." * The National

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
AUSTRALIA SQUAD v SOUTH AFRICA

Aaron Finch (capt), Shaun Marsh, Travis Head, Chris Lynn, Glenn Maxwell, D'Arcy Short, Marcus Stoinis, Alex Carey, Ashton Agar, Mitchell Starc, Josh Hazlewood, Pat Cummins, Nathan Coulter-Nile, Adam Zampa

How Tesla’s price correction has hit fund managers

Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.

It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.

The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.

Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.

Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.

He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.

AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”

A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.

Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.

Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.

Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.

By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.

Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.

In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”

Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.

She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.

Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.

The low down

Producers: Uniglobe Entertainment & Vision Films

Director: Namrata Singh Gujral

Cast: Rajkummar Rao, Nargis Fakhri, Bo Derek, Candy Clark

Rating: 2/5

COMPANY PROFILE
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 
Company profile

Date started: January, 2014

Founders: Mike Dawson, Varuna Singh, and Benita Rowe

Based: Dubai

Sector: Education technology

Size: Five employees

Investment: $100,000 from the ExpoLive Innovation Grant programme in 2018 and an initial $30,000 pre-seed investment from the Turn8 Accelerator in 2014. Most of the projects are government funded.

Partners/incubators: Turn8 Accelerator; In5 Innovation Centre; Expo Live Innovation Impact Grant Programme; Dubai Future Accelerators; FHI 360; VSO and Consult and Coach for a Cause (C3)

Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)