The Dubai Reef project was announced during Cop28 in the emirate on December 1. Photo: Wam
The Dubai Reef project was announced during Cop28 in the emirate on December 1. Photo: Wam
The Dubai Reef project was announced during Cop28 in the emirate on December 1. Photo: Wam
The Dubai Reef project was announced during Cop28 in the emirate on December 1. Photo: Wam

Dubai launches reef project to boost marine life, eco-tourism and fishermen's livelihoods


Deena Kamel
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Dubai has launched a coral reef project for marine restoration that will increase sea life eight-fold, improve the sustainability of fishermen’s livelihoods and attract eco-tourism.

The Dubai Reef project, which was announced at Cop28 on Friday, will span 600 square kilometres of the emirate’s waters, with the design of the coral reefs exceeding 400,000 cubic metres in total volume, Helal Al Marri, director-general of the Dubai Department of Economy and Tourism, said during a session at the Business an Philanthropy Climate Forum.

The project will operate on a public-private partnership model where the government has contributed 10 per cent of the investment and has secured commitments for more than 50 per cent of the funding, Mr Al Marri said.

“We worked with the best minds to look at coral reef restoration and how to rebuild the coral environment and ensure it makes a difference,” he said.

“What we would hope is that this successful model makes it very bankable for other communities around the world.”

The project is part of Dubai’s efforts to increase fish stocks, support sustainable fishing and help boost food security, according to a statement by the Dubai Media Office on Friday.

Dubai Reef will also help to reduce carbon emissions and increase marine biodiversity. The reefs have an estimated capacity to capture more than seven million tonnes of carbon annually.

The project is also aligned with the UAE’s goals to achieve climate neutrality by 2050.

The Dubai Reef project will be led by the Department of Economy and Tourism and founding partner the Regulatory Committee on Fishing of Living Aquatic Resources in Dubai, in co-operation with Dubai Chambers, the Ports, Customs and Free Zone Corporation and Nakheel.

“The project will contribute to achieving food security and supporting the sustainability of the fishing industry in Dubai,” Major General Ahmed Mohammed bin Thani, chairman of the Regulatory Committee on Fishing of Living Aquatic Resources in Dubai, said.

“It will also contribute to facilitating fishing operations by providing an environment that attracts fish and marine life, thus reducing the operational costs associated with commercial fishing. The project will also contribute to increasing the quantities and abundance of commercial fish.”

The project is set to unfold in four phases starting in 2024, according to the Dubai Media Office statement.

It will begin in the first quarter and is scheduled for completion within four years, it said.

The project will help create jobs, increase the appeal of recreational water activities and foster sustainable food sources, it said.

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.”

Updated: December 01, 2023, 6:53 PM