When industry or nature wreaks environmental havoc, there are those who launch protests and insurance claims, and others who get on with the job of mopping up and rebuilding.
If a
coral rehabilitation project
is anything to go by, many Fujairah residents are in the latter group.
Fujairah, the most picturesque of the UAE's seven emirates but also the poorest, has had its share of natural and man-made disasters. In 2007, a
cyclone
ravaged its coast, on the Indian Ocean. The following year, a
red-tide outbreak
took a massive toll on its fisheries.
Oil slicks
have been a recurrent problem for the emirate, which is home to the world's second biggest
bunkering port
- a major refueling point for transoceanic shipping.
On top of that, there is global warming, which can kill coral directly by raising sea temperatures. Some believe it also does so indirectly by increasing the frequency of extreme weather phenomena and the toxic algal blooms that constitute red tide.
Due to all of these factors, Fujairah's coral reefs have recently taken a beating. That could add up to a major set-back to a relatively small economy that depends heavily on tourism, and particularly on local spending by recreational divers.
Instead of complaining,
Al Boom Diving
and
Le Meridien al Aqah Beach Resort
got together last year to do something about the impending lack of coral, with enthusiastic backing from other Fujairah-linked businesses, individuals and the government.
"It is very much a community project," says Patrick Antaki, the general manager of the resort. "We're finding some good souls to help us out with funding. Everybody has come together: corporations, government and us."
Last week, a group of scuba-diving reporters, guests and photographers were invited to check on the eight-month old Fujairah "reef ball" project's progress. To view the video shot by our team at The National, click
here
.
Colonisation of the purpose built concrete structures is looking good.
Even better news is that the reef-ball project is not Fujairah's only initiative aimed at helping coral to regenerate. In another experiment, government scientists are attempting to
transplant coral
to repopulate damaged natural reefs in an approach that may also be tried on the reef balls.
The initiatives have come in the nick of time. Fujairah's oil related industry, from refineries to a new crude export terminal, is on the threshold of significant expansion, which can only add to the existing stress on the emirate's coral reefs unless rigorous preventative action is taken. To read about one such initiative, click
here
.
Environmental
damage from shipping activity
is also a big problem off the UAE's Gulf coast.
Fujairah, however, is already showing that community attitude can make a difference. This year, says Mr Antaki, "the water has been a lot cleaner than in many years; there has been less red tide; oil has been a lot less sighted; so things are looking up."
"You know how it goes in the UAE: things are done in the background, and then suddenly you say 'Oh yes, something has changed'," he adds.
Indeed, it seems that Abu Dhabi's government has long been signalling a need for environmental protection to its most important company, the Abu Dhabi National Oil Company (ADNOC). In its latest
health, safety and environment report
, ADNOC highlights a coral reef preservation project, among other environmental initiatives. In the 2008 document, it also reports its lowest carbon dioxide emissions in five years.
There is no doubt that global warming and is being taken seriously here, whether or not it is linked to cyclones like the one that provided the impetus for Fujairah's reef-ball project.
If anyone wants a reminder of what a cyclone (or hurricane) can do to a coastline, see below:
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In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
The Vile
Starring: Bdoor Mohammad, Jasem Alkharraz, Iman Tarik, Sarah Taibah
Director: Majid Al Ansari
Rating: 4/5
UAE squad to face Ireland
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In numbers: PKK’s money network in Europe
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Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
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Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
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Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
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Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
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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.”