Mohamed Zaman stands beside a generator at the Alishba Building, which has closed down for five days due to diesel shortages. Northern Emirates residents worry that electrical and fuel shortages will affect power as the summer heat sets in.
Mohamed Zaman stands beside a generator at the Alishba Building, which has closed down for five days due to diesel shortages. Northern Emirates residents worry that electrical and fuel shortages will Show more

Fuel shortage may bring power cuts, residents fear



SHARJAH // Fuel shortages in the Northern Emirates may begin to affect power supplied by diesel generators as the summer heat boosts demand, residents fear.
No electricity means no air conditioning, lifts or hot water when temperatures can top 50C.
Until now the three-week petrol shortage that has closed Eppco and Enoc filling stations has affected only drivers, but there are concerns that the effects may now spread. Mohammed, who lives in the Mashaallah building in the Sawan area of Ajman, said his building relied on generators for all of its electricity and he had been forced to switch fuel suppliers from Eppco and Enoc to Emarat.
"Our diesel tanker supplier failed to bring diesel twice, because of shortages," he said. "We cannot keep our tenants in the dark because of these power cuts."
More than 400 buildings in Ajman are powered solely by generators, as the emirate has for years been dealing with a lack of electricity infrastructure and generation capacity.
Saifullah Mohammed, owner of the Alishba building in Rashidiya, Ajman, said he was closing the building because of an increase of more than 10 per cent in fuel prices in the past two weeks.
The building has been powered by a generator for two years, he said, and the price of fued had risen from Dh12 a litre to Dh13.30.
"Every month I have been spending Dh50,000 on diesel for the generators," he said. "Now it is summer. And the prices are increasing. How much am I going to spend? Besides, getting diesel has been very hard these days and I think prices will continue to go up."
Mr Mohammed has issued eviction notices to all his tenants, and about 10 families have left the building in the past two weeks. Only three families remain in the seven-floor building.
"We shall resume business once the Government supplies electricity," he said. "Authorities have told us by end of next year we shall all have electricity."
Sharjah has experienced blackouts for the past two summers, all related to diesel shortages at the Sharjah Electricity and Water Authority (Sewa), said Abdul Majid Ishaq, 40, an Egyptian resident of Sharjah University City.
The emirate relies on diesel fuel to power several of its generating stations, and shortages led to power cuts last year.
"Unlike previous years, when these diesel crises were limited to suppliers and power authorities, this year's diesel crisis started with petrol stations," he said. "There are no secrets - the emirate has a crisis affecting every business and service. Electricity is no exception."
Akram Jumah, 40, an Ethiopian resident of Rolla, said there had been several power-related problems lately with lifts and air conditioners, but that it was difficult to determine the cause.
"Last week a woman said she was stuck in a lift for 20 minutes without any help," he said. "The lift just stopped suddenly and remained closed."
He said the watchman said low voltage to the lift's motors was to blame.
A Sewa spokesman said there had been no power cuts in Sharjah city this summer so far and he hoped there would be none. Last year's problems had been fixed, he said.
But some Sharjah towns such as Khor Fakhan have already suffered power cuts, most recently on Sunday. That was a result of a technical fault that was fixed in less than an hour, said Eng Ahmed al Mulla, deputy director of Sewa Eastern Region.
"The authority is working hard not to have similar power disruptions this summer to its clients," he said.
Umm al Qawain suffered similar cuts last week, and the Federal Electricity and Water Authority (Fewa), responsible for supplies in the emirate, attributed them to the power plant expansion projects in the emirate.
ykakande@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.”