More than 150 ministers and senior officials took part in a Green Retreat setting out the UAE's crucial climate change goals on the road to the Cop28 summit in Dubai this year.
The major gathering of representatives of both the public and private sector - branded United for Climate - was held at Expo City Dubai, which will host the critical global conference from November 30 to December 12.
Key figures attending the event included Sheikha Shamma bint Sultan, president and chief executive of the UAE Independent Climate Change Accelerators, Mariam Al Mheiri, Minister of Climate Change and Environment, Abdulla bin Touq, Minister of Economy, Suhail Al Mazrouei, Minister of Energy and Infrastructure, Ahmad Al Falasi, Minister of Education and Salem Al Qassimi, Minister of Culture and Youth.
The event brought together high-level representatives from federal and local government, leading private sector companies and prominent business leaders with the shared mission of furthering plans to safeguard the planet.
Ms Al Mheiri said the event, organised by the Ministry of Climate Change and Environment, served as an opportunity to develop the UAE's climate change strategies, which include hitting net-zero emissions by 2050 and accelerating the transition to renewable energies.
“The Green Retreat serves as an invaluable opportunity for participants to learn about the UAE's outstanding climate action record and contribute their ambitious ideas to drive tangible progress in national efforts towards sustainable economic growth,” said Ms Al Mheiri.
“We aim to develop a comprehensive climate action plan through the participation of all government and private institutions, which will create significant opportunities for economic growth and diversification, generate employment for youth, foster inclusive and cohesive communities, harness the potential of clean energy, safeguard natural habitats and preserve the environment.”
Pressing challenges to overcome
Ms Al Mheiri underlined the gravity of the task facing the world, with rising food waste, carbon emissions, biodiversity loss and the impending threat of climate change to humankind on the agenda.
Mr bin Touq said swift and concerted action was needed to advance green strategies and protect the environment.
“Co-ordinating all government efforts in the country in preparation for hosting Cop28 is a national priority, given the importance of this vital issue and its direct impact on the comprehensive development process at both state and global levels,” he said.
“This is especially true in light of the unprecedented challenges facing the world today due to climate change, which will continue to make this issue a top priority on the global dialogue agenda in the coming years.”
Mr Al Mazrouei said it was vital for the UAE to be united in its efforts to ensure the success of Cop28.
“With Cop28 approaching fast, all stakeholders should ensure their efforts are aligned to facilitate an adequate representation of the UAE and the success of the highly anticipated event,” he said.
“Since the country’s establishment by the founding father, the late Sheikh Zayed bin Sultan Al Nahyan, the UAE’s environmental stewardship has been nothing short of inspirational, rendering it a leader of climate action, sustainability and environmental protection.”
Climate action plan
The retreat featured seven councils addressing key topics such as water resource management, biodiversity, private sector engagement and industry transformation and sustainable agriculture and food security.
The councils consisted of experts from federal and local government bodies as well as the private sector. They discussed various ideas and challenges related to each topic before suggesting solutions.
Dr Sultan Al Jaber, and Cop28 President-designate, has raised the alarm over the need for radical action.
He has called for a “system-wide transformation” to be brought into force to allow the world to “course correct” in its mission to achieve climate change goals.
“Significant challenges lie ahead” as the international community seeks to drastically reduce emission levels and limit global temperature rises, Dr Al Jaber said during a climate conference in Copenhagen last month.
Dr Al Jaber, who also serves as the UAE's Minister of Industry and Advanced Technology, is confident that much-needed progress can be made on the road to Cop28 in Dubai.
He previously said Cop28 would act as the first “global stocktake” since the Paris Agreement in 2015, which set out plans to limit global temperature rises to 1.5°C above pre-industrial levels
“The bottom line is this: the world needs to cut emissions by 43 per cent in the next seven years to keep 1.5°C alive,” Dr Al Jaber said.
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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.”
Company profile
Date started: December 24, 2018
Founders: Omer Gurel, chief executive and co-founder and Edebali Sener, co-founder and chief technology officer
Based: Dubai Media City
Number of employees: 42 (34 in Dubai and a tech team of eight in Ankara, Turkey)
Sector: ConsumerTech and FinTech
Cashflow: Almost $1 million a year
Funding: Series A funding of $2.5m with Series B plans for May 2020
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Company%20profile
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