Volunteers clear up after an oil spill in the Philippines. Scientists say billions of people around the world lack access to uncontaminated water. AFP
Volunteers clear up after an oil spill in the Philippines. Scientists say billions of people around the world lack access to uncontaminated water. AFP
Volunteers clear up after an oil spill in the Philippines. Scientists say billions of people around the world lack access to uncontaminated water. AFP
Volunteers clear up after an oil spill in the Philippines. Scientists say billions of people around the world lack access to uncontaminated water. AFP

UAE looks to bring 'creative mind' to bear on world's water crisis


Tim Stickings
  • English
  • Arabic

The UAE vowed on Tuesday to "take forward” a push for clean water in the face of poverty, disease and climate change when it hosts the UN's next water summit.

A 2026 summit co-hosted by the UAE and Senegal will come as time runs out to hit 2030 anti-poverty goals, and with the UN warning that six billion people will live with water shortages by 2050.

We’re using the example of what has been working in the UAE and elevating it internationally
Shaima Gargash

Expectations of progress will be high after more than 800 pledges were made at the last UN water summit in 2023.

"We’re not here to reinvent the wheel. We’re here to actually take it forward,” said Shaima Gargash, director of energy and sustainability at the UAE's Ministry of Foreign Affairs.

The UAE is no stranger to the crisis because the Middle East is a water-scarce region, she told a World Water Week panel in Sweden.

One idea is to encourage research and development in the manner of the Zayed Sustainability Prize and the Expo Live funding programme in the UAE.

"We’re using the example of what has been working in the UAE and elevating it internationally,” Ms Gargash told diplomats.

"A few decades ago, the UAE started developing various competitions and platforms that bring in the creative mind to come up with solutions.

"We’ve talked about the need to bring in the private sector, but also the scientists and the academics as well. There is a strong element of research and development.”

A new study suggested this month that as many as four billion people do not have safe drinking water, twice as many as previously thought.

Figures shared with The National suggest about 250 million people in the Middle East and North Africa do not use a safely managed water supply.

Construction at the New Administrative Capital in the desert east of Cairo, Egypt, in December 2023. Reuters
Construction at the New Administrative Capital in the desert east of Cairo, Egypt, in December 2023. Reuters

The study said contaminated water is a "major driver” of diarrhoea, which in turn is a prominent cause of child mortality.

France and Kazakhstan plan to hold interim talks on the sidelines of the UN General Assembly next month to encourage countries to act.

"The idea is not to launch new commitments because we have enough commitments,” said Barbara Pompili, who is preparing the talks on behalf of French President Emmanuel Macron.

"I see too many people saying 'climate change is a burden … and now we have this water problem, another burden'. We have to show that it could be a great opportunity for a lot of countries and a lot of people.”

Climate summits

At last year's Cop28 climate summit in Dubai, dozens of countries committed to protecting 30 per cent of their rivers and freshwater sources.

The talks marked a "real breakthrough” in which water was also declared one of seven key resilience targets, said UK official Andrew Roby.

Water will again be "specifically addressed” on the agenda of the Cop29 summit taking place in Azerbaijan in November, said its president-designate, Mukhtar Babayev, on Tuesday.

Azerbaijan has cited the decline of the Caspian Sea as an example of the severe threat brought by changes to the planet.

"These are systems on which human society and the living planet rely,” Mr Babayev said.

"Interruptions in the water cycle are some of the most direct ways that people experience climate change.”

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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Yorkshire Vikings 144-1 in 12.5 overs
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Updated: August 27, 2024, 2:42 PM