Charred trees and ash on the outskirts of the Algerian city of El Tarf. AFP
Charred trees and ash on the outskirts of the Algerian city of El Tarf. AFP
Charred trees and ash on the outskirts of the Algerian city of El Tarf. AFP
Charred trees and ash on the outskirts of the Algerian city of El Tarf. AFP

Algeria's Unesco-listed El Kala nature reserve damaged by forest fires


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Wildfires in Algeria have ravaged one of the country’s most treasured nature reserves, officials said.

El Kala National Park and Biosphere Reserve was recognised by Unesco in 1990 as a “mosaic of marine, dune, lake and forest ecosystems". A national park since 1983, the mountainous and heavily forested coastal area also features a network of wetlands, protected under the international Ramsar Convention, otherwise known as the Convention on Wetlands.

About 13 per cent of the park was destroyed by wildfire, or 4,045 of more than 30,750 hectares, which have swept across the north of the country throughout this month.

The reserve, which received substantial assistance from the World Bank after its Unesco designation, hosts one of the last wild habitats of the endangered Barbary stag.

Kamel Beldjoud, Algeria's Interior Minister, said some of an estimated 100 fires, which have killed 38 people, may have been started intentionally. Algeria’s Civil Defence Ministry put the number of fires since June at more than 1,000.

The figure cited by Rafik Baba Ahmed, former director of the El Kala Biosphere Reserve, indicates the burnt area of the park alone is almost double what the civil defence service said has been destroyed throughout Africa's largest country since June.

Mr Baba Ahmed said forest covers 54,000 hectares of the park and most of the trees are cork oak. "It is considered one of the main biodiversity reserves in the Mediterranean basin," he said, extolling its "exceptional biological richness".

But he said he was "very pessimistic" about the future of the area, which is damaged regularly by forest fires.

"Over time, the fires weaken the forest, making it vulnerable to other attacks: harmful insects but especially to human activities," he said.

As a consequence, the area loses its flora and fauna, he said.

While wildfires in Algeria's north-east have been largely extinguished, firefighters were battling two blazes on the other side of the country in Tlemcen, in the far west, the civil defence said on its Facebook page.

The fires led Algerians both at home and among the diaspora to donate clothing, medicine and food to help those affected.

European Union foreign policy chief Josep Borrell has offered support, while French President Emmanuel Macron called his Algerian counterpart Abdelmadjid Tebboune to express his condolences "for the victims of the fires", state news agency APS reported.

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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.”

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Updated: August 21, 2022, 11:24 AM