Saudi Arabia's Acwa Power signed a preliminary agreement with Oman Investment Authority to explore bringing the sovereign wealth fund on as an investor for the 1.1-gigawatt Suez Wind Energy project in Egypt.
The OIA is considering a stake in the project, Acwa Power — the project’s largest stakeholder — said in a statement on Tuesday.
Oman’s sovereign wealth fund will “assess” the possibility of owning up to 10 per cent of the project, which is valued at $1.5 billion, the Riyadh-based utility developer said.
The plant, which is located in the Gulf of Suez and Gabal el Zeit area, is expected to reach financial close by the third quarter of 2024, and will be commercially operational by the end of 2026.
“As we continue to build upon our renewables portfolio in Egypt, we value our continued partnership with Oman Investment Authority as well as Hassan Alam Holdings and believe their collaboration and contribution on this significant wind energy project will strongly enable the energy diversification goals of the nation,” Acwa Power chairman Mohammad Abunayyan said.
Acwa Power currently holds a 75 per cent stake in the project, with Egypt-based Hassan Allam Holding owning the remaining 25 per cent stake.
The initial agreement was signed between OIA and Acwa Power at the Cop27 climate summit being held in Sharm El Sheikh in Egypt.
Thousands of policymakers and experts have gathered in the resort city to refocus efforts on reducing emissions and managing climate change.
Last week, Acwa Power signed an initial agreement to build a 10-gigawatt wind farm in Egypt, likely to be the the world's second-largest.
The value of the project was not disclosed and the final agreements will depend on feasibility studies, as well as the availability of land, the Saudi Energy Ministry said at the time.
Acwa Power already has two solar energy projects and another wind farm project planned in Egypt, which aims to increase its renewable energy sources to 42 per cent by 2035, from about 11 per cent in 2019.
The company develops, invests in and operates power generation and desalinated water plants. It currently has 67 projects in operation or under construction with an investment of more than $66.5bn in 13 countries across Asia and Africa.
It aims to increase its power-generating capacity to 120 gigawatts from 43 gigawatts currently over the next decade.
The amount of electricity generated by wind increased by almost 273 terawatt per hour in 2021, 45 per cent higher than the growth achieved in 2020, according to the International Energy Agency.
Wind is the leading non-hydro renewable technology, having generated 1,870 TWh last year, almost as much as all the others combined.
Capital investments in renewables are set to reach $494bn in 2022, outstripping upstream oil and gas at $446bn for the year, according to Norway-based consultancy Rystad Energy.
The world needs to double its renewable power targets for 2030 to achieve net zero emissions, the International Renewable Energy Agency (Irena) said on Monday.
Countries are aiming to reach 5.4 terawatts of installed renewable capacity by the end of the decade, about half of the 10.8 terawatts of capacity required, according to Irena’s scenario that restricts temperature increases to 1.5°C above pre-industrial levels.
Killing of Qassem Suleimani
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.”
More on Quran memorisation:
Zayed Sustainability Prize
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
if you go
The flights
The closest international airport to the TMB trail is Geneva (just over an hour’s drive from the French ski town of Chamonix where most people start and end the walk). Direct flights from the UAE to Geneva are available with Etihad and Emirates from about Dh2,790 including taxes.
The trek
The Tour du Mont Blanc takes about 10 to 14 days to complete if walked in its entirety, but by using the services of a tour operator such as Raw Travel, a shorter “highlights” version allows you to complete the best of the route in a week, from Dh6,750 per person. The trails are blocked by snow from about late October to early May. Most people walk in July and August, but be warned that trails are often uncomfortably busy at this time and it can be very hot. The prime months are June and September.
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
THREE
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Our Time Has Come
Alyssa Ayres, Oxford University Press
COMPANY%20PROFILE
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The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
