UAE has three weigh stations, and only two are working



ABU DHABI // The UAE has only three known weighing stations on its roads - points along the motorway at which lorries can be pulled over by police for a weight check.

Abu Dhabi has one in Mussaffah on the road to Al Ain after the Mafraq bridge; Ras Al Khaimah has another; and there is one between Fujairah and Al Dhaid.

Amjad Al Saadi, operations manager of Roadlink General Transport in Abu Dhabi, said only two of these were operational.

"I just found out today that the Mussaffah weigh station is not working," Mr Al Saadi said.

There is no weigh station in Dubai, and senior officials at the Roads and Transport Authority have said they had no plans to install any.

Lorry drivers and operators say they are not often pulled over at the weigh stations for independent checks.

Most stop to weigh themselves because, for cross-border transport to Qatar and Bahrain, lorries carrying more than 15 tonnes of cargo for each axle can be fined Dh3,000, Mr Al Saadi said.

The only other points at which a lorry can be weighed are on entering and leaving cargo pick-up points, such as quarries.

Sanjiv Dillai, supervisor at Saif Bin Darwish Crushers in Fujairah, said the company placed no limits on how much a lorry could carry and drivers were left to decide how much was safe to carry.

"Lorries are weighed on entering the quarry and again when they leave, and we determine the load they have picked up," said Mr Dillai. "Most lorries average 65 to 70 tonnes of cargo per trip."

Abdulilah Zineddin, who holds a doctorate in traffic engineering and safety, said: "Certainly, there is a big lorry problem in Abu Dhabi when it comes to enforcement and education. The focus should be on who is responsible in enforcing the laws."

The Department of Transport in Abu Dhabi manages the weigh station there but does not have authority to fine or stop those with overloaded vehicles.

"There is a big policy gap," one source said. "DoT can't enforce any kind of law. It's like giving one a police building but you can't put anyone in jail."

rruiz@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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Position: legal consultant with Al Rowaad Advocates and Legal Consultants