Enec will tonight address concerns members of the public may have following the travails faced by the Japanese nuclear sector. Seokyong Lee / Penta Press
Enec will tonight address concerns members of the public may have following the travails faced by the Japanese nuclear sector. Seokyong Lee / Penta Press

Enec's chief executive hosts public debate on nuclear power



The government company charged with building the UAE's nuclear reactors is opening its first formal dialogue with the public in the capital since the disaster at the Fukushima Daiichi atomic plant in north-east Japan.

Video: ENEC opens up for talks about UAE's nuclear plans

Last Updated: June 16, 2011 UAE

Enec, the UAE's nuclear energy company, will be talking to the public tonight for the first time since the disaster at the Fukushima nuclear plants in Japan, addressing concerns about UAE's plans to go ahead with nuclear energy.

The chief executive of Emirates Nuclear Energy Corporation (Enec) will tonight address concerns members of the public may have following the Japanese plant's partial meltdown and radiation contamination after a tsunami and earthquake hit the country in March.

The UAE's nuclear officials have taken a cautious approach so far in communicating with the public in the past three months, and the town hall meetings - where Fukushima is listed on the agenda - represent a willingness to talk.

"You cannot succeed in this endeavour without very strong public information and communication," John Loy, the radiation safety director of Federal Authority for Nuclear Regulation (FANR), said at the nuclear watchdog's first press conference yesterday since before the accident in Japan.

The UAE, which has embarked on a US$20 billion (Dh73.46bn) plan to build four reactors in the Western Region that are expected to produce up to a quarter of Abu Dhabi's electricity, is intent on making the case for nuclear power even as other nations, such as Germany, abandon it in the wake of Fukushima.

Italy became the latest country to bow to popular distrust of nuclear energy this week. More than 94 per cent of voters rejected the construction of new nuclear reactors in the country, undoing years of work in building public support for reintroducing atomic energy generation there. Italy had pulled back from nuclear power after the disaster at Ukraine's Chernobyl plant in 1986.

Germany last month agreed to phase out all of its 17 nuclear plants in response to Fukushima. Switzerland is due to phase out its five plants by 2034. Even Japan is looking to drill more wells for geothermal energy to reduce its reliance on nuclear.

The reluctance in those nations to pursue nuclear power illustrates a widening gap between them and the Middle East, where Saudi Arabia and Jordan have been paving the way for nuclear programmes through political agreements. The UAE has not announced any changes to its plans.

"The problem is not so much Fukushima itself, but the German decision. Germany is a number-one economy in Europe, and that could have a ripple effect on the future of nuclear in Europe," said Ian Jackson, an associate fellow at Chatham House, a think tank in London. "Various prospects remain very strong in the Middle East. They have the economic power to develop the plants, the political will, the necessity to do so," he said.

About 120 people turned out on Tuesday night for a briefing from Mohamed al Hammadi, the chief executive of Enec, and nuclear engineers in Madinat Zayed in the Western Region. The proposed site for the UAE's nuclear plant, which is under review by the FANR, is in the town of Braka, about 270km from the capital. Enec, which is awaiting the results of a public opinion study it commissioned last month, is scheduled to address Abu Dhabi residents tonight at Adnec, the exhibition centre.

"Once we explain the basics and the difference between geography and technology, and the added safety layers … people do understand that these are two separate and different cases," said Fahad al Qahtani, the acting director for external affairs and communication at Enec.

"We know that the general public has a positive perception of the nuclear project in the UAE, and we know that they have a fairly good understanding of the project. It's positive, it's supportive, and we're happy."

THURSDAY FIXTURES

4.15pm: Italy v Spain (Group A)
5.30pm: Egypt v Mexico (Group B)
6.45pm: UAE v Japan (Group A)
8pm: Iran v Russia (Group B)

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.”

How to watch Ireland v Pakistan in UAE

When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

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The Pope's itinerary

Sunday, February 3, 2019 - Rome to Abu Dhabi
1pm: departure by plane from Rome / Fiumicino to Abu Dhabi
10pm: arrival at Abu Dhabi Presidential Airport


Monday, February 4
12pm: welcome ceremony at the main entrance of the Presidential Palace
12.20pm: visit Abu Dhabi Crown Prince at Presidential Palace
5pm: private meeting with Muslim Council of Elders at Sheikh Zayed Grand Mosque
6.10pm: Inter-religious in the Founder's Memorial


Tuesday, February 5 - Abu Dhabi to Rome
9.15am: private visit to undisclosed cathedral
10.30am: public mass at Zayed Sports City – with a homily by Pope Francis
12.40pm: farewell at Abu Dhabi Presidential Airport
1pm: departure by plane to Rome
5pm: arrival at the Rome / Ciampino International Airport

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