The extensive roadworks on Al Salam Street will cost Dh5 billion.
The extensive roadworks on Al Salam Street will cost Dh5 billion.

Surveyors' visits surprise residents



ABU DHABI // Residents and business owners along Salam Street have been receiving surprise visits from surveyors who are checking for cracks in buildings. Surveyors from Encardio-Rite Geosystems LLC have been doing a "pre-construction building condition" survey for the past two months on behalf of Abu Dhabi Municipality.

The survey includes inspecting flats for any existing damage and photographing it, as workers prepare to begin deep excavation work for a 3.2km, eight-lane tunnel being built from Al Falah Street to Al Meena Road near Abu Dhabi Islamic Bank, at an estimated cost of Dh3.1billion (US$844m). Businesses have complained that the work, expected to be completed by October 2010, has caused a dip in sales as customers are avoiding the adjacent roadworks. Residents, meanwhile, say the heavy machinery keeps them awake at night.

Michel el Hajj, of Louis Berger Group, the company managing the Dh5bn Salam Street project, said every building within 100 metres of the construction area was being checked. The surveys, he said, were to protect building owners and contractors in case of disputes arising concerning any alleged damage to a building, and were standard procedure around the world. He did not expect the deep excavation work to affect the buildings and said the surveys were simply an extra precaution.

Diaphragm walls have been built at the site of the digging to protect buildings. "We are putting them in so that, when we excavate, we can excavate safely," he said. When completed, the project will double the capacity of Salam Street to more than 6,000 vehicles per hour and allow motorists to drive from Al Meena to the Sheikh Zayed Bridge without meeting a traffic signal. Residents and businesses at the Arzanah Towers building near the junction of Sheikh Zayed the First Street and Salam said yesterday that surveyors had presented them with letters of No Objection signed by building management on Monday.

"They came yesterday and finished very quickly," said Basilia Tomlins, who has lived on the 13th floor for the past nine years. "They said they were just checking the walls for cracks in the foundation." Mrs Tomlins, 36, said the contractor told her the building was still sound and left after five minutes. Yasin Allam, an accountant with Middle East Motors on the mezzanine floor, also said a contractor inspected the office walls for cracks on Monday and found no problems.

However, they had noted down several minor cracks on the third residential floor. There are some cracks in the walls of Mohammed al Shamouty's flat, but the 15-year-old, who has lived in the building for the past nine years, said he was not worried that any of the roadwork nearby would affect his building. "They're just cracks. It's not like it's going to knock down the building," he said. The dust swirling up from the construction site was the main nuisance, said Loretta F, who works for one of the businesses on the first floor of the building.

"We are carrying the dust on our bodies and clothes when we come into the office," she said. "Sometimes we cannot see, it is so blurry." mchung@thenational.ae mkwong@thenational.ae

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The specs: Lamborghini Aventador SVJ

Price, base: Dh1,731,672

Engine: 6.5-litre V12

Gearbox: Seven-speed automatic

Power: 770hp @ 8,500rpm

Torque: 720Nm @ 6,750rpm

Fuel economy: 19.6L / 100km

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.”

The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

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Power: 715bhp

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Five famous companies founded by teens

There are numerous success stories of teen businesses that were created in college dorm rooms and other modest circumstances. Below are some of the most recognisable names in the industry:

  1. Facebook: Mark Zuckerberg and his friends started Facebook when he was a 19-year-old Harvard undergraduate. 
  2. Dell: When Michael Dell was an undergraduate student at Texas University in 1984, he started upgrading computers for profit. He starting working full-time on his business when he was 19. Eventually, his company became the Dell Computer Corporation and then Dell Inc. 
  3. Subway: Fred DeLuca opened the first Subway restaurant when he was 17. In 1965, Mr DeLuca needed extra money for college, so he decided to open his own business. Peter Buck, a family friend, lent him $1,000 and together, they opened Pete’s Super Submarines. A few years later, the company was rebranded and called Subway. 
  4. Mashable: In 2005, Pete Cashmore created Mashable in Scotland when he was a teenager. The site was then a technology blog. Over the next few decades, Mr Cashmore has turned Mashable into a global media company.
  5. Oculus VR: Palmer Luckey founded Oculus VR in June 2012, when he was 19. In August that year, Oculus launched its Kickstarter campaign and raised more than $1 million in three days. Facebook bought Oculus for $2 billion two years later.