The UAE is developing three new water desalination projects to help boost sustainability and achieve water security goals.
They will be developed in Abu Dhabi, Dubai and Umm Al Quwain, with a combined capacity of 420 million imperial gallons of water per day, Minister of Energy and Infrastructure Suhail Al Mazrouei said at the fifth Arab Water Forum in Dubai on Tuesday.
Once commissioned in 2023, the projects will increase the installed water desalination capacity of the Arab world's second-largest economy to 1,590 million imperial gallons per day and will help the country overcome the challenges of water scarcity in future under its UAE Water Security Strategy 2036, he said.
“Water is an essential pillar of sustainability, which makes it a strategic priority of the UAE where three desalination plants … will be commissioned by 2023,” Mr Al Mazrouei said in his speech.
The water sector “is of vital importance to sustainable development, and a factor central to achieving the social, economic and environmental goals and objectives associated with the 2030 Sustainable Development Goals”, he added.
Food and water security are among the top priorities for UAE government. The region heavily relies on the food imports and depends on desalination for a bulk of its potable water needs.
The UAE launched its 2036 water security strategy in 2017, which is focused on the entire UAE’s water supply chain with a priority for strategic production of water resources, storage, transport networks and interconnectivity among the seven emirates.
It focuses on ensuing sustainable access to water during both normal and emergency conditions in line with World Health Organisation standards.
The strategy aims to reduce total demand for water resources by 21 per cent, boost the water productivity index to $110 per cubic metre, reduce the water scarcity index by three degrees, increase the reuse of treated water to 95 per cent and increase national water storage capacity by up to two days.
As well as desalination, the UAE is looking at other greener options such as atmospheric water generation, or AWG, to supplement clean drinking water in homes and institutions. AWG technology, which produces drinking water directly from air by condensing the water molecules below dew point, is being increasingly used in arid environments.
In August, US-based technology company Aquovum said it will start a pilot project at Abu Dhabi's Masdar City as part of the UAE's efforts to produce clean water in a more sustainable way.
Aquovum will produce commercial volumes of uninterrupted water supply using solar and thermal energy in partnership with UAE clean energy company Masdar and the Khalifa University of Science and Technology. The project is part of a three-party research and development agreement between the entities.
On Tuesday, Mr Al Mazrouei said the UAE has made “qualitative contributions” and has disbursed nearly Dh3 billion ($817.43 million) in aid since 2015 to provide water and sanitation-related related development assistance.
“The water-related challenges will become more tough in light of the growing demand for water and the scarcity of resources, especially in our Arab region in the coming years,” he told the forum.
“The worsening global climate change and the increase in future demand for water have forced us to undertake more initiatives, dialogue, reflection and joint work to build future capabilities to meet these challenges and overcome.”
The UAE will remain committed and will continue efforts to “enhance regional and international co-operation in water-related activities and programmes”, he added.
French business
France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.
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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.”
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
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UAE currency: the story behind the money in your pockets
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