Etihad Airways and Tadweer launched a project to explore how municipal waste can be converted into jet fuel. Delores Johnson / The National
Etihad Airways and Tadweer launched a project to explore how municipal waste can be converted into jet fuel. Delores Johnson / The National
Etihad Airways and Tadweer launched a project to explore how municipal waste can be converted into jet fuel. Delores Johnson / The National
Etihad Airways and Tadweer launched a project to explore how municipal waste can be converted into jet fuel. Delores Johnson / The National

Etihad Airways and Tadweer to study recycling household waste into jet fuel


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Etihad Airways, Abu Dhabi’s flag carrier, and the Abu Dhabi Waste Management Center (Tadweer) are launching a research project to explore how municipal waste from homes and other city buildings can be converted into aircraft fuel.

“Waste-to-biofuel is a cutting edge technology and one that Etihad Airways believes will have a profoundly positive impact on the aviation industry, while also providing waste management solutions and a cleaner environment,” said Mohammad Al Bulooki, chief operating officer at Etihad Aviation Group, in a statement on Tuesday.

The adoption and improvement of sustainable energy supplies is a crucial step towards reducing the carrier’s dependency on fossil fuels, allowing the airline to grow sustainably and offset carbon emissions, he added.

Through an agreement signed on Tuesday, the two parties pledged to undertake an initial feasibility study towards developing a waste-to-fuel facility in Abu Dhabi.

If the project is successful, Etihad plans to use the resulting production of jet fuel to power its own planes, it said.

Air transport accounts for 2 per cent of total greenhouse gas emissions and this is projected to rise to 10 per cent by 2050, according to the International Civil Aviation Organisation.

Some organisations, including the International Air Transport Association (Iata), have sought to address the issue by setting carbon reduction targets for airlines and other industry players.

Iata wants a 50 per cent reduction in net aviation carbon emissions by 2050 (from 2005 levels), carbon-neutral growth by 2020 and an average improvement in airlines’ fuel efficiency of 1.5 per cent from 2009 to 2020.

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In its 2017 Sustainability Report, Etihad said it reduced carbon emissions by 3.3 per cent year-on-year in 2017 by retiring several older aircraft and switching to new, more fuel-efficient models.

The project with Tadweer aims to make better use of the estimated 700,000 tonnes per annum of municipal waste in Abu Dhabi that could potentially be converted into jet fuel or other energy sources, the two parties said. The cost of production could also be as low as 50 per cent of average international oil prices, they said.

“This MoU aligns with our mandate to deliver highly innovative industrial and municipal waste management solutions in line with the UAE’s Vision 2021 strategy and Abu Dhabi Waste Master Plan 2040 that aims to divert 75 per cent of municipal solid waste away from landfills,” said Salem Al Kaabi, acting general manager of Tadweer.

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LAST-16 EUROPA LEAGUE FIXTURES

Wednesday (Kick-offs UAE)

FC Copenhagen (0) v Istanbul Basaksehir (1) 8.55pm

Shakhtar Donetsk (2) v Wolfsburg (1) 8.55pm

Inter Milan v Getafe (one leg only) 11pm

Manchester United (5) v LASK (0) 11pm 

Thursday

Bayer Leverkusen (3) v Rangers (1) 8.55pm

Sevilla v Roma  (one leg only)  8.55pm

FC Basel (3) v Eintracht Frankfurt (0) 11pm 

Wolves (1) Olympiakos (1) 11pm 

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.”

PROFILE

Name: Enhance Fitness 

Year started: 2018 

Based: UAE 

Employees: 200 

Amount raised: $3m 

Investors: Global Ventures and angel investors 

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2022:  Khan’s office attributes rise in Islamophobic abuse against the major to hostility stoked during Trump’s presidency

July 2025 During a golfing trip to Scotland, Trump calls Khan “a nasty person”

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Started: 2019
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Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million

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