Kids from eight year olds can start racing mirco karts and then progress to the mini max kart series in the UAE.
Kids from eight year olds can start racing mirco karts and then progress to the mini max kart series in the UAE.

How to be a racing car driver



Anyone can become a racing car driver in the UAE after a few tests are passed. Besides the obligatory amount of endless financing, drivers can race for years.

Kids from eight year olds can start racing mirco karts and then progress to the mini max kart series in the UAE.

"You don't need a licence and you can see if you have the aptitude for karting and if you feel you want to progress, you get sponsorship, which usually comes from the parents," Paul Velasco, Communications manager at Dubai Autodrome said.

From 12, they will compete for another two years in karting and if good enough, they'll gain more sponsorship to race in Europe. "It's a very expensive ladder," he said.

They then go to a racing team after three or four years in Europe karting.

Some can compete locally in Formula Gulf 1000 or continue in Europe and race in Formula Renualt, which is the breeding ground for many Formula One drivers.

"And that's pretty much it. They then race there for two to three years and by the time they're 19 or 20 and blown about $10 million they can bring about $5m worth of sponsorship to GP2 for a year or two. Then they have to get noticed to go to F1 or get $10m to race in a back marker F1 team," Mr Velasco said.

To start racing in the UAE, a competition licence needs to be obtained from the the Automobile and Touring Club of the UAE, where all licences are produced.

For first time licence holders, they must pass an accredited licencing course. To race nationally, they need an FIA licence, for karting, racers have to apply for a CIK licence while the national road races, an FIM licence is required.

Drivers must pass a medical test. If drivers are not Emirati, the ATCUAE must apply to the driver's home country for a letter of non objection to hold a UAE Competition Licence.

eharnan@thenational.ae

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Man of the Match: Aaron Mooy (Huddersfield Town)

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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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