The Abu Dhabi Investment Office is dispersing $41 million to three technology firms to boost initiatives that address global food security challenges under the Ghadan 21 accelerator programme.
Adio has partnered with tech-enabled farming company Pure Harvest Smart Farms, grocery platform FreshToHome and space research firm Nanoracks to develop local expertise and new ways of producing food in arid climates.
"We've gone to land, sea and space" to identify companies to work with, Tariq Bin Hendi, director general of Adio, told The National.
“Abu Dhabi is pressing ahead at full steam with our mission to ‘turn the desert green."
Food security and innovation in agriculture are priorities of the UAE. The Abu Dhabi government has earmarked Dh1 billion ($272m) for the agri-tech incentive programme as part of the government’s Ghadan 21 accelerator initiative.
Between 80 and 90 per cent of the food in the GCC is imported, according to Chatham House.
While the figure is relatively high, UAE residents are starting to reap the benefits of recent efforts: locally-harvested produce at the market or on dining menus are now a common sight. Much of this surfaced over the last few years as vertical and hydroponic farming ventures and research, as well as cloud-seeding, bear fruit.
The Covid-19 pandemic accelerated the push for greater food security in the UAE, Mr Bin Hendi said. Adapting technology and developing local talent in order to be exporters of solutions is "the bare minimum" goal of the programme, he said.
Funding from Adio can cover costs related to Abu Dhabi-based employees, purchasing equipment for research and development and as rebates on land use. The country’s 24,000 farms are set to benefit if new technology can be applied to drive efficiencies in crop yield and water usage, Mr Bin Hendi said.
Earlier this year, Adio invested $100m to bring four other agriculture companies to the emirate to attract high-skilled talent and cutting-edge research. The three companies named on Tuesday are the latest in a wave of funding under the Ghadan21 initiative.
This investment is also among the biggest efforts by the UAE to apply research in space to farming.
“Much of today’s technology used for vertical, urban and closed environment agriculture initially came from space research from 30 years ago," Allen Herbert, head of Nanoracks, UAE, said. "We firmly believe that space research holds the keys to solving major challenges on Earth from climate change to food security."
The US-based company is the single largest commercial user of the International Space Station and is building the first-ever commercial AgTech space research programme.
Nanoracks is now planning a ‘StarLab Space Farming Centre’ in Abu Dhabi. It will be a commercial space research facility focused on advancing knowledge and technology for organisms as well as food produced in space and in equally extreme climates on Earth.
The space-based technology will be applied to desert agriculture to address pressing environmental and food security challenges and to benefit long-term human space exploration, according to the company.
AeroFarms, which took part in the first tranche of Adio funding, has made significant headway in establishing its Abu Dhabi operations.
It received more than 9,000 job applications for work at its desert agriculture research facility in Abu Dhabi and is forging local partnerships.
David Rosenberg, co-founder and chief executive, said the New Jersey company is working with the College of Food and Agriculture at UAE University in Al Ain to develop "a new generation of farm technologies and talents".
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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
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.”
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
Top 10 in the F1 drivers' standings
1. Sebastian Vettel, Ferrari 202 points
2. Lewis Hamilton, Mercedes-GP 188
3. Valtteri Bottas, Mercedes-GP 169
4. Daniel Ricciardo, Red Bull Racing 117
5. Kimi Raikkonen, Ferrari 116
6. Max Verstappen, Red Bull Racing 67
7. Sergio Perez, Force India 56
8. Esteban Ocon, Force India 45
9. Carlos Sainz Jr, Toro Rosso 35
10. Nico Hulkenberg, Renault 26
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
Armies of Sand
By Kenneth Pollack (Oxford University Press)
