Conserve water for a greener future


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Sami Hassan's grass is too thirsty. That, at least, is what government officials are trying to convey to him and many other farmers. As we reported yesterday, Mr Hassan is one of a handful of growers experimenting with indigenous grass feed that requires less water to grow, and protects a precious natural resource in the process.

It would be easy to disregard Mr Hassan and the government's grass study if its success weren't critical to the nation's sustainability. Water waste is a problem across the UAE. According to Environment Agency - Abu Dhabi's projections, water use in the capital is forecast to exceed supply by next year. As a recent study by Columbia University in New York warns, this could have a severe impact on the "continued quality of life and economic prosperity of the Abu Dhabi city and the emirate".

Reversing this trend - in Abu Dhabi and elsewhere - will mean rethinking conventions. While many cities have sought to become urban havens with vast expanses of foliage, decades of desert greening has taken a toll. In Abu Dhabi, the majority of the emirate's water resources are used not for human consumption, but to irrigate urban landscaping and farms.

Conservation campaigns are one way to reverse this trend. Education - of farmers and consumers alike - is another.

Given that most of the nation's water is produced by energy-intensive desalination, users must pay more for the fresh water they consume. Regulators in Abu Dhabi have inched prices higher, but more closely linking generation costs to the prices that consumers pay would go a long way to reduce consumption.

Planning officials could also promote change by ordering that new public spaces be built with water conservation in mind. While water conservation guidelines are already included in building codes, additional measures such as xeriscaping - using mulch instead of turf, or mandating drip irrigation - could see broader use.

Sheikh Zayed was visionary in his belief that Abu Dhabi could be a green capital. But as the UAE matures, recognising water's value, whether it flows from a tap or the end of a watering can, is a good place to start anew.

THE BIO

Born: Mukalla, Yemen, 1979

Education: UAE University, Al Ain

Family: Married with two daughters: Asayel, 7, and Sara, 6

Favourite piece of music: Horse Dance by Naseer Shamma

Favourite book: Science and geology

Favourite place to travel to: Washington DC

Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

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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Countries recognising Palestine

France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra

 

The Sand Castle

Director: Matty Brown

Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea

Rating: 2.5/5

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