The Zayandeh Rud river in Isfahan, which now runs dry owing to water extraction. AFP
The Zayandeh Rud river in Isfahan, which now runs dry owing to water extraction. AFP
The Zayandeh Rud river in Isfahan, which now runs dry owing to water extraction. AFP
The Zayandeh Rud river in Isfahan, which now runs dry owing to water extraction. AFP

Iran protests continue over Khuzestan water crisis


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Street protests over water shortages in south-west Iran continued for a sixth night on Tuesday.

At least two young men have been shot dead in the demonstrations in Khuzestan, and residents of Tehran and other cities are protesting in solidarity.

Officials blame armed protesters for the deaths, but activists said the men were killed by the security forces.

At least 31 demonstrations, including rallies by workers and farmers, were held in Iran on Monday and Tuesday, the dissident Human Rights Activists News Agency said.

Campaigners and local monitoring groups said the government cut the internet in Khuzestan to block videos of the growing unrest.

Footage filmed overnight in the city of Izeh showed protesters shouting slogans including “death to the principle of Velayat-e Faqi” and “we don’t want Islamic Republic”.

Velayat-e Faqi is the underlying ideology in Iran that permits the clergy to rule over the state.

Other videos uploaded to social media showed the security forces using tear gas to disperse protesters. The semi-official news agency Fars said “rioters” shot one policeman dead and injured another in the port city of Bandar Mahshahr.

Since the protests began on July 15, they have grown in size and in violence as frustration among residents rises. In the Khuzestan city of Susangerd, a decommissioned Iraqi tank serving as a monument to the 1980-88 Iran-Iraq war was set on fire.

Iran is facing its worst drought in 50 years and is experiencing power cuts as a result. The water shortage is also affecting households and agriculture.

According to the Iranian Department of Water and Sewerage, at least 110 cities have struggled with regular water cuts since the start of the summer. Iran ranks fourth in the world for water scarcity, meaning it does not have enough water for consumption.

In June, Iran’s energy minister, Reza Ardakanian, said 2021 was “one of the driest years in five decades”.

An official at the country’s meteorological organisation put it more simply: “Bluntly speaking, there is no water.” The official, from the organisation’'s centre for drought, said there had been a 50 to 85 per cent reduction in precipitation this year, particularly in the southern and eastern regions, which include Khuzestan.

The Zayandeh Rud river in Isfahan has long been a victim of water extraction, often running dry, as has Lake Urmia, once the second-largest salt lake in the world.

Khuzestan, however, used to include large wetlands and marshes. While almost a third of Iran’s rivers once flowed through the region, it is now a wasteland owing to droughts, dam construction, mismanagement and oil extraction.

A controversial dam built in 2018 on the Karun river, one of Khuzestan’s vital resources, reduced the water supply by two thirds. Shortages have been a problem for nearly 40 years, often leading to protests and clashes.

Experts have repeatedly issued warnings that water scarcity will eventually lead to a larger conflict within the region.

Iran’s economy is also struggling, largely because of sanctions imposed on its oil industry by former US president Donald Trump. The pandemic has worsened the problem.

Workers, including thousands in the energy sector, have protested for months. Discontent is growing over mismanagement, high unemployment and an inflation rate above 50 per cent.

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Why the Tourist Club?

Originally, The Club (which many people chose to call the “British Club”) was the only place where one could use the beach with changing rooms and a shower, and get refreshments.

In the early 1970s, the Government of Abu Dhabi wanted to give more people a place to get together on the beach, with some facilities for children. The place chosen was where the annual boat race was held, which Sheikh Zayed always attended and which brought crowds of locals and expatriates to the stretch of beach to the left of Le Méridien and the Marina.

It started with a round two-storey building, erected in about two weeks by Orient Contracting for Sheikh Zayed to use at one these races. Soon many facilities were planned and built, and members were invited to join.

Why it was called “Nadi Al Siyahi” is beyond me. But it is likely that one wanted to convey the idea that this was open to all comers. Because there was no danger of encountering alcohol on the premises, unlike at The Club, it was a place in particular for the many Arab expatriate civil servants to join. Initially the fees were very low and membership was offered free to many people, too.

Eventually there was a skating rink, bowling and many other amusements.

Frauke Heard-Bey is a historian and has lived in Abu Dhabi since 1968.

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
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
Schedule for Asia Cup

Sept 15: Bangladesh v Sri Lanka (Dubai)

Sept 16: Pakistan v Qualifier (Dubai)

Sept 17: Sri Lanka v Afghanistan (Abu Dhabi)

Sept 18: India v Qualifier (Dubai)

Sept 19: India v Pakistan (Dubai)

Sept 20: Bangladesh v Afghanistan (Abu Dhabi) Super Four

Sept 21: Group A Winner v Group B Runner-up (Dubai) 

Sept 21: Group B Winner v Group A Runner-up (Abu Dhabi)

Sept 23: Group A Winner v Group A Runner-up (Dubai)

Sept 23: Group B Winner v Group B Runner-up (Abu Dhabi)

Sept 25: Group A Winner v Group B Winner (Dubai)

Sept 26: Group A Runner-up v Group B Runner-up (Abu Dhabi)

Sept 28: Final (Dubai)

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

The specs

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Transmission: 8-speed dual-clutch auto

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THE BIO: Martin Van Almsick

Hometown: Cologne, Germany

Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)

Favourite dessert: Umm Ali with dark camel milk chocolate flakes

Favourite hobby: Football

Breakfast routine: a tall glass of camel milk

Updated: July 21, 2021, 1:07 PM