Ambassador Hamad Al Kaabi, UAE Permanent Representative to the International Atomic Energy Agency, at the 2013 International Framework for Nuclear Energy Cooperation meeting Abu Dhabi. Fatima Al Marzooqi/ The National.
Ambassador Hamad Al Kaabi, UAE Permanent Representative to the International Atomic Energy Agency, at the 2013 International Framework for Nuclear Energy Cooperation meeting Abu Dhabi. Fatima Al Marzooqi/ The National.
Ambassador Hamad Al Kaabi, UAE Permanent Representative to the International Atomic Energy Agency, at the 2013 International Framework for Nuclear Energy Cooperation meeting Abu Dhabi. Fatima Al Marzooqi/ The National.
Ambassador Hamad Al Kaabi, UAE Permanent Representative to the International Atomic Energy Agency, at the 2013 International Framework for Nuclear Energy Cooperation meeting Abu Dhabi. Fatima Al Marzo

Transparency key to UAE’s nuclear future


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ABU DHABI // Confidence that the UAE nuclear industry is safe and for peaceful purposes is crucial to its success, Dr Anwar Gargash told world experts on Thursday.

The Minister of State for Foreign Affairs said this meant that transparency, at home and with the international community, was critical.

“The UAE has adopted strong, transparent measures into the design of the programme, including commitments not to pursue sensitive technologies,” Dr Gargash said.

“We are of the view that credibility of any nuclear energy programme is linked directly to the level of domestic and international confidence in the safety, security and peaceful nature of the programme.

“Such credibility is the key for long-term success and sustainability.”

Dr Gargash was addressing the 2013 International Framework for Nuclear Energy Cooperation meeting, held in the capital on Thursday, which focused on the next era of the industry and the importance of ensuring its safety.

The meeting was aimed at strengthening cooperation among established and new members of the nuclear community, addressing challenges and identifying opportunities for nuclear energy.

"We're focusing on how we can pursue the development of nuclear energy in a responsible manner," said Hamad Al Kaabi, the UAE's permanent ambassador to the International Atomic Energy Agency. "This means safety, security and non-proliferation.

“We’re tackling the issue of financing nuclear energy. We realise that the market has changed and issues such as having a robust regulatory framework and a clear policy framework are the kind of factors that could contribute to having a sound business model for the project.”

Infrastructure and financing for newcomers, such as Poland, and those considering nuclear energy, such as Ghana and Morocco, were at the top of the agenda.

Nuclear was an attractive option for Morocco, which has to import 95 per cent of the energy it needs, said Khalid El Mediouri, director general of the country’s Centre for Nuclear Energy Sciences and Technology.

Dr Gargash said embarking on a new nuclear programme was a major undertaking that needed significant resources and planning, and long-term commitment.

Edward McGinnis, deputy assistant secretary for international nuclear policy and cooperation at the US department of energy said financing was a huge challenge, as establishing a nuclear industry “requires a great deal of capital upfront”.

“Long-term, there’s great benefit to long, stable electricity generation at a stable price through nuclear but it’s the capital investment that is particularly challenging,” he said.

Others spoke of the importance of nuclear power in building a low-carbon future, and important lessons from the aftermath of the March 2011 earthquake and tsunami at the Fukushima reactor in Japan.

“We’ve seen more and more evidence that global climate change is occurring and carbon emissions are a cause of rising temperatures,” said Daniel Poneman, deputy secretary of the US department of energy.

“We’ve been through the experience of Fukushima where the tragic tsunami presented the world with a tremendous challenge that we had to learn from.

“It’s clear that we’ve learnt lessons and yet, globally, there remains worldwide understanding that nuclear power remains an important part of building a low-carbon future.”

Mr Poneman said the power plant incident in Japan underscored the need for a shared community of best practices for safety.

Hao Weiping, director general for nuclear energy development at China’s national energy authority, agreed on the need for collaboration, and said more countries were showing confidence in atomic power.

“It’s important to develop nuclear power in the spirit of solidarity and collaboration,” Mr Hao said. “Ensuring safety is always at the forefront for Chinese nuclear power and it’s very important for the future development of technologies and the safe expansion of nuclear power.”

He said 30 reactors were being built in China, adding to the 50 already operating.

Dr Khaled Toukan, chairman of the Jordan Atomic Energy Commission, said his country had put much research into safety and security.

“We are in the final stages of choosing a preferred bid for nuclear technology,” Dr Toukan said.

Dr Gargash said the political situation in the region made transparency even more important.

“Looking at recent political developments in our region, it becomes instantly apparent that nuclear power expansion must include transparent and verifiable procedures,” he said.

“It is the lack of responsible safeguards and transparency that makes the expansion of nuclear energy in the Gulf and the Middle East a problematic proposition.”

cmalek@thenational.ae

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.”

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RESULTS

5pm: Wathba Stallions Cup – Handicap (PA) Dh70,000 (Turf) 2,200m
Winner: M'A Yaromoon, Jesus Rosales (jockey), Khalifa Al Neydai (trainer)

5.30pm: Khor Al Baghal – Conditions (PA) Dh80,000 (T) 1,600m
Winner: No Riesgo Al Maury, Antonio Fresu, Ibrahim Al Hadhrami

6pm: Khor Faridah – Handicap (PA) Dh80,000 (T) 1,600m
Winner: JAP Almahfuz, Royston Ffrench, Irfan Ellahi

6.30pm: Abu Dhabi Fillies Classic – Prestige (PA) Dh110,000 (T) 1,400m
Winner: Mahmouda, Pat Cosgrave, Abdallah Al Hammadi

7pm: Abu Dhabi Colts Classic – Prestige (PA) Dh110,000 (T) 1,400m
Winner: AS Jezan, George Buckell, Ahmed Al Mehairbi

7.30pm: Khor Laffam – Handicap (TB) Dh80,000 (T) 2,200m
Winner: Dolman, Antonio Fresu, Bhupath Seemar

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What is the definition of an SME?

SMEs in the UAE are defined by the number of employees, annual turnover and sector. For example, a “small company” in the services industry has six to 50 employees with a turnover of more than Dh2 million up to Dh20m, while in the manufacturing industry the requirements are 10 to 100 employees with a turnover of more than Dh3m up to Dh50m, according to Dubai SME, an agency of the Department of Economic Development.

A “medium-sized company” can either have staff of 51 to 200 employees or 101 to 250 employees, and a turnover less than or equal to Dh200m or Dh250m, again depending on whether the business is in the trading, manufacturing or services sectors. 

Checks continue

A High Court judge issued an interim order on Friday suspending a decision by Agriculture Minister Edwin Poots to direct a stop to Brexit agri-food checks at Northern Ireland ports.

Mr Justice Colton said he was making the temporary direction until a judicial review of the minister's unilateral action this week to order a halt to port checks that are required under the Northern Ireland Protocol.

Civil servants have yet to implement the instruction, pending legal clarity on their obligations, and checks are continuing.

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