The section of Khalifa Street that was cut off from Liwa Street to Airport Road next to Central Market has opened again. Delores Johnson / The National
The section of Khalifa Street that was cut off from Liwa Street to Airport Road next to Central Market has opened again. Delores Johnson / The National

Abu Dhabi congestion eases as Central Market tunnel opens



ABU DHABI // Almost six years after work began, Khalifa Street is once again connected to Airport Road, with six lanes of traffic now making its way through a ground-level tunnel beneath Central Market.
Access in the congested city-centre area has eased since the opening of a portion of Khalifa (Street 3) last week, leaving local residents and businesses hopeful of easier passage and increased trade.
Tourists wanting to visit The Souq: Central Market should also find access easier as, in addition to the three lanes in either direction, a drop-off layby with a taxi rank at the entrance has been installed.
But other building work is continuing at Central Market, so while progress has been made, work is still ongoing in nearby areas.
Talal Al Dhiyebi, executive director of asset management at Aldar, the developer of the market, said yesterday: "The road closed to motorists in 2006 and opened on July 5."
The opening of other parts of the market will be announced later.
Aali Qaedi Kunji, who has lived in the area for 37 years, said: "The street has been closed for almost seven years. But I feel some respite since the opening as traffic movement in the area has got better."
Mr Kunji, who runs Cairo Castle Textiles, a shop opposite The Souq, said it used to be hard to find a parking space but the better access makes it easier.
"People would come and be stuck in traffic but now they are free to move around," he said. "All these years we have been continuously losing business but after this road opening, we hope for better."
Khaled Al Qubaisi, an Emirati who also lives in the area, said: "It looks good and has good accessibility to other roads. I am happy to see the traffic jams ease in the vicinity."
Ismael Abdul Qader, a shopper at The Souq, said: "It connects you directly to the Corniche, which is a few blocks away, as well as Airport Road. Before, coming to this area was a nightmare."
Muzammil Ashraf Zarghar, a shopkeeper at Kashmir House in The Souq, said: "I think after a few weeks, when people get to know about this new road, sales could jump up."
The Souq: Central Market, opened in 2010 and is a modern development that purports to be a historic souq.
A souq has been present in the vicinity since the 1970s but previous ones would have been nothing like the grand indoor space that is there now, with its Andalusian-style fountain and rooftop restaurant.
anwar@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.”

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More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
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Name: The Concept

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