The scenery is bizarre along recession's magic road



I've cracked it. I live on a magic road. The strangest stretch of concrete in the UAE, where only strange things happen and even stranger people wander the streets. The most bizarre encounter of them all came last week when I noticed a small, rotund middle-aged Indian man loitering outside my apartment building fiddling with a pair of car keys. He seemed friendly enough, but then again this road is different, and you can easily fall prey to its trickery at any second.

As I strolled past him he smiled and muttered a barely audible question in my direction. Was he too embarrassed, or was the road somehow manipulating his vocal chords to fool unsuspecting passers-by? It was difficult to tell. "Excuse me?" he said as the road rapidly took control of his voice. "I have just purchased this Lexus and am not sure how to start it. Could you help me start it, please?" he said in a tone not dissimilar to Cher when she ridiculously decided to try to refresh her fading career by running her lyrics through a voice changer.

The road was in control and there was nothing he nor I could do. I stood there thinking about what he had just said, more dumbfounded than a goldfish living in the world's smallest glass bowl. He had just uttered one of the most ludicrous lines in human history and one of the craziest excuses I had ever heard. This man was the criminal equivalent of former ski jumper Eddie "the Eagle" Edwards, famously known as one of Olympic history's worst performing sportsmen. The problem was this guy would probably have no issues with launching himself off a death-defying icy slope with only one ski and no safety helmet.

After five minutes of being frozen to the spot, I politely mumbled my excuses and left the scene. Believe it or not, later that day another man accosted me. This time, however, he demanded I hand over Dh50. He wasn't trying to mug me, he simply said that he had no money and had not eaten anything for the past two days. Now I come from London, where tramps ooze odours deadlier than a blue cheese-wrapped skunk and vagrants have as much fashion sense as a pony-tailed early 1980s rock star being woken up at 6am following a wild night in Las Vegas. But this chancer appeared well-off, wearing a suit with a perfectly pressed shirt, a tie and spotless black brogues - his attire was more expensive than the garments I had on at the time.

The road had claimed another victim. But was there more to why all these sad sights were happening? Let's face it, these desperate times we're living in call for desperate measures. The worst example took place last week, when a temporary Wal-Mart employee was trampled to death by a mass of bargain-hunting consumers barging into a store near New York in the early hours of the morning. The early days of recessionary apocalypse have arrived, panic is ensuing and people are doing anything they can to spend less and save more. They are having it so bad these days that when you offer them even the slightest glimpse of a sale they transform into slobbering financial crisis-style zombies, losing the plot completely and acting in ways they have never acted before.

Things are starting to look pretty grim out there for those that have formed the spine of global economies for so long. But now even the Middle East's mid-incomers are suffering. Loans and mortgages are harder to find than a camel in a sand storm, cash is as a liquid as a pint of dirt in Death Valley and firings are now becoming more common than seeing a cavalcade of Toyota Pajeros on the Sheikh Zayed motorway. Over a thousand people in property and banking have lost their jobs in Dubai in the last two weeks alone, and slowdown will certainly claim more casualties in the coming months.

Expect more roads across the land to become like mine, where previously wealthy men make increasingly bizarre requests, birds fly backwards and the guard standing in front of your apartment building sounds more and more like the dwarf from the final episode of Twin Peaks. Batten down the hatches, we could be in for a rough ride. jbennett@thenational.ae

The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Volvo ES90 Specs

Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)

Power: 333hp, 449hp, 680hp

Torque: 480Nm, 670Nm, 870Nm

On sale: Later in 2025 or early 2026, depending on region

Price: Exact regional pricing TBA

The specs
Engine: 4.0-litre flat-six
Power: 510hp at 9,000rpm
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Price: From Dh801,800
Match info

Deccan Gladiators 87-8

Asif Khan 25, Dwayne Bravo 2-16

Maratha Arabians 89-2

Chadwick Walton 51 not out

Arabians won the final by eight wickets

THE SPECS

      

 

Engine: 1.5-litre

 

Transmission: 6-speed automatic

 

Power: 110 horsepower 

 

Torque: 147Nm 

 

Price: From Dh59,700 

 

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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The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

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 
NO OTHER LAND

Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal

Stars: Basel Adra, Yuval Abraham

Rating: 3.5/5

Champions parade (UAE timings)

7pm Gates open

8pm Deansgate stage showing starts

9pm Parade starts at Manchester Cathedral

9.45pm Parade ends at Peter Street

10pm City players on stage

11pm event ends

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

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.”