Creating water from the air may sound futuristic or fictional, but that is what Tunisian entrepreneur Iheb Triki does.
Mr Triki, chief executive and co-founder of Kumulus Water, felt the water sector was “largely disregarded”, despite the resource being vital for survival, after working in private equity and investing in start-ups focused on renewable energy, water and waste.
He was keen on the concept of decentralised water production, and watching the formation of morning dew in stark conditions on a trip to the Tunisian desert inspired him to bring his vision to life.
“During that trip in the desert, this is where I saw that there is humidity even in the deep desert, and you can create water with the dew phenomenon,” he says.
An engineering graduate, Mr Triki was confident that his idea was feasible and convinced co-founder Mohamed Ali Abid to join him to set up Kumulus in 2021. The start-up raised more than $500,000 a year and a half later, helping them build their machinery and certify it. “Then we raised about $2.5 million later on to be able to commercialise this machine,” he explains.
About 100 of the company's Amphore machines are now deployed, producing around 3,000 litres of water per day, which approximately 2,000 people drink daily.
For me, in 10 years, Kumulus will become the water utility of the future
Iheb Triki,
chief executive and co-founder, Kumulus Water
Worldwide, millions of urban residents are facing the impact of water scarcity and contamination. Unicef estimates that figure will exceed 2.3 billion by 2050. By 2030, 50 per cent of the global population will live in water-stressed regions, it said last year.
Roughly half of the world’s population experiences severe water scarcity for at least part of the year, the United Nations World Water Development Report 2024 found. One quarter of the world’s population face “extremely high” levels of water stress, using more than 80 per cent of their annual renewable freshwater supply.
“None of the Sustainable Development Goal 6 targets appear to be on track,” the report warned, referring to the target of ensuring availability and sustainable management of water and sanitation for all by 2030.
It is estimated that achieving universal access to safe drinking water and sanitation will cost about $114 billion per year until 2030, according to the World Bank.
Mr Triki says water scarcity is not just a social problem, but a “human problem” that Kumulus is trying to address.
“It's not only social in terms of the poor versus the rich, it's really everyone who will be struggling to find water at the end,” he says. “But then my business side and my private equity career forced me to seek beyond the social and human aspect, the financial profitability. And this is why, when we designed the machine from day one, financial profitability was super important. It is important for the customers and it is important for my shareholders when I raise money.”
The company has raised approximately $4 million cumulatively so far, with “a lot of the help or incentives coming from the French government, not for the social aspects, but for the IP aspect, intellectual property research”.
This year, Kumulus is preparing for an “important fundraise” and plans to use the resulting amount to expand in Spain, France, Tunisia, Morocco and the Gulf region. It launched in Saudi Arabia in January and is in discussions with companies in the kingdom amid strong interest.
Globally, it has more than 50 clients, including large companies that provide machines to schools in villages as part of their corporate social responsibility programmes.
Other customers include factories, offices, hotels and places where water is scarce and they only use plastic bottles for drinking water. “We go to them and we tell them, we would provide you with autonomy in terms of drinking water. You don't need to use plastic any more. So, it's better for the environment, and super important, it's cheaper,” Mr Triki says.
Kumulus sells the machine for $5,900 and then charges about $2,000 to $3,000 per annum for maintenance. The company also offers leasing or rental to clients.
“During my years in private equity, I came to the conclusion that just thinking that people will do good by themselves, it's not going to work, it's not going to be scalable … and to convince the majority of people [to] change their behaviour, they need to have a financial incentive,” Mr Triki says.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
“In our case, we are cheaper than bottled water to convince people that, yes, they would be better for the environment, but most of all, that they would make money out of it.”
The company, which is currently reinvesting heavily in its business, aims to break even in 2026.
Looking ahead, technology will improve to address all the elements of water scarcity, as well as pollution, reducing plastic usage and creating autonomy in terms of water, he says.
With six times more water in the air than in all the world's rivers and the sun, “imagine a world where the technology allows you to create water from sun and air. Isn't it abundant? … The only thing that we need to work on is engineering to make this cheaper”, Mr Triki says.
In the next five years, he expects to see bigger machines, as well as machines to generate not just drinking water but meet all general water needs.
“So, our next phase for the next five years for Kumulus is a container that you can plug to your house or to your factory, and you don't need anything anymore. You have energy. You have water. And then PV panels with energy, and then you create food as well.”
Kumulus has expanded from two people to 22 employees across Tunisia, Spain and France. It has also appointed a general manager for Saudi Arabia.
“For me, in 10 years, Kumulus will become the water utility of the future, with high tech that allows any institution, factory, offices, homes, to have the full independence when it comes to drinking water. We call it going from water scarcity to water abundance,” Mr Triki says.
Q&A with Iheb Triki, chief executive and co-founder of Kumulus Water
Who is your role model?
I like [Apple co-founder] Steve Jobs. He had drive, he was a dreamer and he was able to achieve beauty and high tech at the same time.
What are some of the key things that you learnt while setting up this company?
Resilience is super important. You need to create your own protection and you need to take care of yourself and your family, because this experience is a marathon, it's a long run. Also, every problem has a solution. It shouldn't impact you personally.
Anything that you would do differently if you could start over?
Definitely, we can do things much, much better if we start over, because we've made a lot of mistakes: some countries and some recruitment, some regions we went to. We would have done things differently because of the experience, I think.
Also, more focus. That's advice that everyone says, but a very low number of entrepreneurs do. Focus more and don't stretch yourself thin.
Any key advice that you would give to other entrepreneurs?
Make sure that you take care of yourself: doing sports, reading, and make sure that you have a backbone of family and friends.
Second thing: focus on what you're doing. Looking too much at the competition or at the others doesn't help you. What kills you is internally more than externally. And third: resilience, it's all about resilience.
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
HIJRA
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Director: Shahad Ameen
Rating: 3/5
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.”
What are the GCSE grade equivalents?
- Grade 9 = above an A*
- Grade 8 = between grades A* and A
- Grade 7 = grade A
- Grade 6 = just above a grade B
- Grade 5 = between grades B and C
- Grade 4 = grade C
- Grade 3 = between grades D and E
- Grade 2 = between grades E and F
- Grade 1 = between grades F and G
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
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Maratha Arabians 138-2
C Lynn 91*, A Lyth 20, B Laughlin 1-15
Team Abu Dhabi 114-3
L Wright 40*, L Malinga 0-13, M McClenaghan 1-17
Maratha Arabians won by 24 runs
PROFILE OF SWVL
Started: April 2017
Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh
Based: Cairo, Egypt
Sector: transport
Size: 450 employees
Investment: approximately $80 million
Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
Key changes
Commission caps
For life insurance products with a savings component, Peter Hodgins of Clyde & Co said different caps apply to the saving and protection elements:
• For the saving component, a cap of 4.5 per cent of the annualised premium per year (which may not exceed 90 per cent of the annualised premium over the policy term).
• On the protection component, there is a cap of 10 per cent of the annualised premium per year (which may not exceed 160 per cent of the annualised premium over the policy term).
• Indemnity commission, the amount of commission that can be advanced to a product salesperson, can be 50 per cent of the annualised premium for the first year or 50 per cent of the total commissions on the policy calculated.
• The remaining commission after deduction of the indemnity commission is paid equally over the premium payment term.
• For pure protection products, which only offer a life insurance component, the maximum commission will be 10 per cent of the annualised premium multiplied by the length of the policy in years.
Disclosure
Customers must now be provided with a full illustration of the product they are buying to ensure they understand the potential returns on savings products as well as the effects of any charges. There is also a “free-look” period of 30 days, where insurers must provide a full refund if the buyer wishes to cancel the policy.
“The illustration should provide for at least two scenarios to illustrate the performance of the product,” said Mr Hodgins. “All illustrations are required to be signed by the customer.”
Another illustration must outline surrender charges to ensure they understand the costs of exiting a fixed-term product early.
Illustrations must also be kept updatedand insurers must provide information on the top five investment funds available annually, including at least five years' performance data.
“This may be segregated based on the risk appetite of the customer (in which case, the top five funds for each segment must be provided),” said Mr Hodgins.
Product providers must also disclose the ratio of protection benefit to savings benefits. If a protection benefit ratio is less than 10 per cent "the product must carry a warning stating that it has limited or no protection benefit" Mr Hodgins added.