'Second downtown' closer to reality



ABU DHABI // Work on the capital's "second downtown" will start in a year's time, it was announced yesterday, following a stamp of approval by the Executive Council. The Capital District will be built 7km inland from Abu Dhabi island and eventually be called home by some 370,000 people. It will also house all embassies and federal government institutions. Falah al Ahbabi, the general manager of the Urban Planning Council (UPC), said work on the district would start "aggressively" in the first or second quarter of 2010. The first phase of the project, featuring universities, housing for thousands of Emiratis and government offices, is expected to be completed within three years. Two other projects led by the UPC were approved by the Executive Council at the same time as the Capital District plan. A scheme to build community facilities in Khalifa City B, where residents have complained about a lack of amenities, was given the green light, as was a project to regenerate the Shahama and Bahia areas. "It is a massive project, of about 4,900 hectares, which consists of government buildings, commercial buildings, residential buildings, schools, and parks," Mr al Ahbabi said of the Capital District: "It is a complete sustainable city that will house 370,000 people over the course of 25 years." The district will also have a residential component including 3,000 units for Emirati citizens. The plots have been designed and are ready to be allocated. The vision for the district, which will be revealed in full at the Cityscape Abu Dhabi event next month, came to fruition after a forum involving city planners from world capitals including Washington and Brasilia at the Emirates Palace hotel in March last year. It is one of the key components of the Plan Abu Dhabi 2030, the blueprint for the development of the capital. Mr al Ahbabi had previously said the Capital District would ease the burden on Abu Dhabi island, and create a recognisable centre for the capital. "It will be a city for the nation, a place for people to relate to," he said last year. "If someone from Fujairah or Ajman wants to talk about their capital, they need to have a good idea about the federal district, like in Washington DC, Ottawa or Canberra." According to the general manager, the UPC is preparing tender documents. "Hiring the project manager will take probably a month or two. Preparing the tender document for the infrastructure will take probably four months," Mr al Ahbabi said yesterday. "If we are lucky and can get everything sorted out, we can start building the infrastructure in the first quarter of 2010." The general manager said the infrastructure for phase one could be completed within two years after the project was launched. "That is, of course, based on the timeframe we set and on how aggressive we want to approach the infrastructure. The infrastructure will start in the first quarter of next year and be completed in two years. "But the completion of the whole infrastructure can take up to six years, and in some areas maybe 10 years. It all depends on how aggressive we want to be on the rest of the phases." Phase one of the Capital District is the development of federal government offices, the town centre, a Sport City, the Emirati housing, and new headquarters for both Zayed University and Khalifa University. An exhibition centre or convention centre will also be built. The UPC did not disclose the cost of the project. "It is not a matter of budget but of requirements. The city centre needs to be ready in two years from the starting time. So we are doing [phase one] aggressively." As soon as the contract for the infrastructure has been awarded, the owners of the different plots will be able to start acquiring building permits, according to the UPC. "We still have a shortage of housing in Abu Dhabi," said Mr al Ahbabi. "What we need is to move aggressively on developing these developments. We understand the global situation but we are not backing off because we need these units." A blueprint produced by the Department of Transport revealed that the Capital District would be linked to Abu Dhabi island by a tram, metro and high-speed rail, which will also link up with Dubai, by 2030. The transport blueprint is expected to be finalised next month. ngillet@thenational.ae

Sam Smith

Where: du Arena, Abu Dhabi

When: Saturday November 24

Rating: 4/5

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In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

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Key facilities
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  • 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
AGUERO'S PREMIER LEAGUE RECORD

Apps: 186
Goals: 127
Assists: 31
Wins: 117
Losses: 33

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.”