Fire broke out at about 2pm at Al Hafeet Tower 2 in the Al Taawun neighbourhood in Sharjah on 22 April 2013. Faime Puebla / The National
Fire broke out at about 2pm at Al Hafeet Tower 2 in the Al Taawun neighbourhood in Sharjah on 22 April 2013. Faime Puebla / The National

Dozens of families flee as Sharjah fire guts 20-storey tower



SHARJAH // More than 80 families were evacuated after a fire broke out in a 20-storey building in the Al Taawun neighbourhood.

Mohammed Al Shamal, an officer with Sharjah Police rescue team, said: “We have treated five cases of smoke inhalation, most of them simple and moderate. All those, including a four-year-old boy, were treated on the scene. One more serious case – a 55-year-old woman – was taken to Kuwait hospital.”

The blaze started at about 2pm at Al Hafeet Tower 2. It took fire fighters from Sharjah, Dubai and Ajman about two hours to completely control the blaze, said Brigadier Abdullah Saeed Al Suwaidi, the director general of Sharjah Civil Defence.

“The response was quick on our side,” he said. “We were on the scene in less than five minutes and this helped to minimise the spread of the fire.”

Ten floors at the rear of the building were gutted by the fire. Apartments on the front were untouched but residents were evacuated as a precaution.

Civil Defence officials are yet to determine the cause of the blaze and where it started, Brig Al Suwaidi said. Initial investigations pointed to either the second or seventh floors.

Khalid Obaid Al Shamsi, a senior Civil Defence official, praised the work of the police and rescue teams in evacuating residents as well as removing vehicles from the car park to prevent them from being damaged by falling debris.

Aisha, an Indian mother of two, said she led her children down the building’s stairs as soon as the fire alarm started.

“Police were speaking in a mix of Arabic and Urdu asking us to go through the stairs not the lifts. There were many families coming down with us,” she said.

Al Hafeet Tower 2 is only a few blocks away from Al Bakar tower 4, which was destroyed by fire last year leaving more than 100 families homeless. Also last year, more than 400 families were displaced after a fire at Al Tayer tower.

Authorities said the Al Bakar and Al Tayer fires were both caused by discarded cigarettes.

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Etihad flies daily from Abu Dhabi to Zurich, with fares starting from Dh2,807 return. Frequent high speed trains between Zurich and Vienna make stops at St. Anton.

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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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