• Cop27 delegates arrive in Sharm El Sheikh. AFP
    Cop27 delegates arrive in Sharm El Sheikh. AFP
  • Saudi Crown Prince Mohammed bin Salman and Egyptian President Abdel Fattah El Sisi shake hands during the Middle East Green Initiative conference, held on the sidelines of the the UN's Cop27 climate summit in Sharm El Sheikh, Egypt. EPA
    Saudi Crown Prince Mohammed bin Salman and Egyptian President Abdel Fattah El Sisi shake hands during the Middle East Green Initiative conference, held on the sidelines of the the UN's Cop27 climate summit in Sharm El Sheikh, Egypt. EPA
  • German Chancellor Olaf Scholz delivers a speech during the Cop27 summit. AP
    German Chancellor Olaf Scholz delivers a speech during the Cop27 summit. AP
  • Prince Mohammed appears on a projection as he addresses leaders during the second Green Middle East Initiative summit, held on the sidelines of the Cop27 climate conference in Sharm El Sheikh. SPA
    Prince Mohammed appears on a projection as he addresses leaders during the second Green Middle East Initiative summit, held on the sidelines of the Cop27 climate conference in Sharm El Sheikh. SPA
  • French President Emmanuel Macron delivers a speech at Cop27. AP
    French President Emmanuel Macron delivers a speech at Cop27. AP
  • Sheikh Mohamed speaks with Jordan's King Abdullah II and Crown Prince Hussein bin Abdullah at the event. Reuters
    Sheikh Mohamed speaks with Jordan's King Abdullah II and Crown Prince Hussein bin Abdullah at the event. Reuters
  • A sign illuminates the plenary hall at Cop27. Getty
    A sign illuminates the plenary hall at Cop27. Getty
  • Sheikh Mansour, centre, visits the Bahrain Pavilion. With him is Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, UAE Special Envoy for Climate Change and chairman of Masdar. Photo: UAE Presidential Court
    Sheikh Mansour, centre, visits the Bahrain Pavilion. With him is Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, UAE Special Envoy for Climate Change and chairman of Masdar. Photo: UAE Presidential Court
  • Italian Prime Minister Giorgia Meloni speaks during the Cop27 summit. EPA
    Italian Prime Minister Giorgia Meloni speaks during the Cop27 summit. EPA
  • Sheikh Abdullah bin Zayed, UAE Minister of Foreign Affairs and International Co-operation, participated in the second Green Middle East Initiative conference, which began on Monday in Sharm El Sheikh. WAM
    Sheikh Abdullah bin Zayed, UAE Minister of Foreign Affairs and International Co-operation, participated in the second Green Middle East Initiative conference, which began on Monday in Sharm El Sheikh. WAM
  • A visitor takes a picture at the Ukrainian pavilion during Cop27. Reuters
    A visitor takes a picture at the Ukrainian pavilion during Cop27. Reuters
  • British Prime Minister Rishi Sunak, right, hugs French President Emmanuel Macron during a meeting at Cop27. AP
    British Prime Minister Rishi Sunak, right, hugs French President Emmanuel Macron during a meeting at Cop27. AP
  • Sheikh Mohamed with Mr Sunak. Photo: UAE Presidential Court
    Sheikh Mohamed with Mr Sunak. Photo: UAE Presidential Court
  • A member of the Amazon indigenous delegation attends the event. EPA
    A member of the Amazon indigenous delegation attends the event. EPA
  • Sheikh Mohamed meets Kristalina Georgieva, managing director of the International Monetary Fund. Photo: UAE Presidential Court
    Sheikh Mohamed meets Kristalina Georgieva, managing director of the International Monetary Fund. Photo: UAE Presidential Court
  • Former British prime minister Boris Johnson poses for a selfie at the event in Sharm El Sheikh. EPA
    Former British prime minister Boris Johnson poses for a selfie at the event in Sharm El Sheikh. EPA
  • Mr Johnson poses for a selfie at the event. EPA
    Mr Johnson poses for a selfie at the event. EPA
  • Mr Sunak addresses delegates at the Cop27 summit. AP
    Mr Sunak addresses delegates at the Cop27 summit. AP
  • Sheikh Mohamed meets Israeli President Isaac Herzog. Photo: UAE Presidential Court
    Sheikh Mohamed meets Israeli President Isaac Herzog. Photo: UAE Presidential Court
  • Mr Herzog delivers a speech at the summit. AFP
    Mr Herzog delivers a speech at the summit. AFP
  • UAE President Sheikh Mohamed addresses the UN's Cop27 climate summit in Sharm El Sheikh, Egypt. Photo: UAE Presidential Court
    UAE President Sheikh Mohamed addresses the UN's Cop27 climate summit in Sharm El Sheikh, Egypt. Photo: UAE Presidential Court
  • Sheikh Mohamed attends the Cop27 summit. Photo: UAE Presidential Court
    Sheikh Mohamed attends the Cop27 summit. Photo: UAE Presidential Court
  • Al Gore, chairman of Generation Investment Management, speaks at the climate conference. Bloomberg
    Al Gore, chairman of Generation Investment Management, speaks at the climate conference. Bloomberg
  • Mr El Sisi speaks during the plenary session at Cop27. Bloomberg
    Mr El Sisi speaks during the plenary session at Cop27. Bloomberg
  • Sheikh Mohamed with Mr El Sisi. Photo: UAE Presidential Court
    Sheikh Mohamed with Mr El Sisi. Photo: UAE Presidential Court
  • Delegates attend a session at Cop27. Bloomberg
    Delegates attend a session at Cop27. Bloomberg
  • UN Secretary General Antonio Guterres speaks at Cop27. Getty
    UN Secretary General Antonio Guterres speaks at Cop27. Getty
  • Bahrain's Crown Prince Salman bin Hamad greets King Abdullah II of Jordan during a photo session at Cop27. Bloomberg
    Bahrain's Crown Prince Salman bin Hamad greets King Abdullah II of Jordan during a photo session at Cop27. Bloomberg
  • Mr Johnson at Cop27. AP
    Mr Johnson at Cop27. AP
  • Prime Minister of Sweden Ulf Kristersson writes down his contact details for Mr Sunak during the Cop27 climate conference. Getty
    Prime Minister of Sweden Ulf Kristersson writes down his contact details for Mr Sunak during the Cop27 climate conference. Getty
  • President Sheikh Mohamed greets Simon Stiell, executive secretary of the UN Framework Convention on Climate Change, at the event. Getty
    President Sheikh Mohamed greets Simon Stiell, executive secretary of the UN Framework Convention on Climate Change, at the event. Getty
  • President Sheikh Mohamed, Jordan's King Abdullah II, Bahrain's Crown Prince Salman bin Hamad, Mr El Sisi, Mr Guterres, Mr Macron, Bulgarian President Rumen Radev, Lebanon's Prime Minister Najib Mikati and other leaders pose for a family photo during the Cop27 climate summit in Sharm El Sheikh. Reuters
    President Sheikh Mohamed, Jordan's King Abdullah II, Bahrain's Crown Prince Salman bin Hamad, Mr El Sisi, Mr Guterres, Mr Macron, Bulgarian President Rumen Radev, Lebanon's Prime Minister Najib Mikati and other leaders pose for a family photo during the Cop27 climate summit in Sharm El Sheikh. Reuters
  • Sheikh Mohamed and King Abdullah in Sharm El Sheikh. Reuters
    Sheikh Mohamed and King Abdullah in Sharm El Sheikh. Reuters
  • Mr Scholz boards a government plane to travel to Egypt for the Cop27 summit. AP
    Mr Scholz boards a government plane to travel to Egypt for the Cop27 summit. AP
  • Sheikh Mohamed with other dignitaries. Photo: UAE Presidential Court
    Sheikh Mohamed with other dignitaries. Photo: UAE Presidential Court
  • Sheikh Mohamed with Bahrain's Crown Prince Salman bin Hamad and other dignitaries. Photo: UAE Presidential Court
    Sheikh Mohamed with Bahrain's Crown Prince Salman bin Hamad and other dignitaries. Photo: UAE Presidential Court
  • Sheikh Mohamed tours the conference with Dr Al Jaber. Photo: UAE Presidential Court
    Sheikh Mohamed tours the conference with Dr Al Jaber. Photo: UAE Presidential Court
  • From left, Mr El Sisi, Ms Meloni and Mr Guterres pose for photographs at the start of Cop27. EPA
    From left, Mr El Sisi, Ms Meloni and Mr Guterres pose for photographs at the start of Cop27. EPA
  • Mr Sunak meets European Commission President Ursula von der Leyen during the Cop27 summit. PA
    Mr Sunak meets European Commission President Ursula von der Leyen during the Cop27 summit. PA
  • US Special Presidential Envoy for Climate John Kerry, right, at the Cop27 summit in Sharm El Sheikh. AP
    US Special Presidential Envoy for Climate John Kerry, right, at the Cop27 summit in Sharm El Sheikh. AP
  • Mr Macron meets young Africans on the sidelines of Cop27. AFP
    Mr Macron meets young Africans on the sidelines of Cop27. AFP
  • The French president listens to young conference-goers speak at the event. AFP
    The French president listens to young conference-goers speak at the event. AFP
  • The Green Zone at Cop27. Fatima Al Mahmoud / The National
    The Green Zone at Cop27. Fatima Al Mahmoud / The National
  • The Green Zone aims to promote dialogue, awareness, education and commitments through events, exhibitions, workshops and talks. Fatima Al Mahmoud / The National
    The Green Zone aims to promote dialogue, awareness, education and commitments through events, exhibitions, workshops and talks. Fatima Al Mahmoud / The National
  • It is dotted with life-size art installations, including a large panda made from recycled materials such as pieces of glass and plastic bottles. Fatima Al Mahmoud / The National
    It is dotted with life-size art installations, including a large panda made from recycled materials such as pieces of glass and plastic bottles. Fatima Al Mahmoud / The National
  • The Green Zone will hold themed events such as Gender Day, Decarbonisation Day and Solutions Day. Fatima Al Mahmoud / The National
    The Green Zone will hold themed events such as Gender Day, Decarbonisation Day and Solutions Day. Fatima Al Mahmoud / The National
  • It is a vast, vibrant space that offers a change of scenery. Fatima Al Mahmoud / The National
    It is a vast, vibrant space that offers a change of scenery. Fatima Al Mahmoud / The National
  • The Green Zone is designed as a place for the business community, youths, civil societies, academics, artists and fashion experts from all over the world to express themselves. Fatima Al Mahmoud / The National
    The Green Zone is designed as a place for the business community, youths, civil societies, academics, artists and fashion experts from all over the world to express themselves. Fatima Al Mahmoud / The National
  • Mr Sunak arrives in Sharm El Sheikh to attend Cop27. Getty
    Mr Sunak arrives in Sharm El Sheikh to attend Cop27. Getty

Egypt's El Sisi opens Cop27 climate summit with plea for flexibility


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The high-level segment of the two-week UN climate summit opened in Egypt on Monday, with Egyptian President Abdel Fattah El Sisi urging participants to be flexible in negotiations to agree that can save the planet from rising temperatures.

“The time has arrived, the time to work. There's no room for retreat or excuses. Missing the opportunity means the loss of our legacy and the future of our children and grandchildren,” said the Egyptian leader.

“This is a defining moment in the life of our planet.”

Mr El Sisi's warning came as recent scientific findings showed that current trends would mean carbon pollution increasing by 10 per cent by the end of the decade, and the Earth's surface heating up by 2.8 degrees.

The Egyptian president was the first to take to the podium as world leaders gathered to share their vision on how to save the planet. He was followed by UN Secretary General Antonio Guterres and President Sheikh Mohamed.

Nearly 50 heads of state and prime ministers are scheduled to address the summit, also known as Cop27, at the Egyptian Red Sea resort of Sharm El Sheikh on Monday.

"What the world needs today to pull through the current climate crisis," said Mr El Sisi.

"What our people are expecting now is effective, fast and just implementation, they expect from us real and tangible measures to reduce emissions and build a capability to adjust to the consequences of climate change.”

In his address, Mr El Sisi also made a passionate plea to world leaders to work towards ending the Russia-Ukraine war. He said the conflict has caused economic hardship to his country as well as many others.

“I call on behalf of myself and you, if you will allow me, for that war to stop; for this ruin and killing to stop.”

Mr Guterres delivered a stern warning on climate change, in keeping with his stepped-up rhetoric on the issue.

“Our planet is fast approaching tipping points that will make climate chaos irreversible,” he said. We are on a highway to climate hell with our foot on the accelerator. It is unacceptable, outrageous and self-defeating to put it on the back burner.

"The science is clear: any hope of limiting temperature rise to 1.5 degrees means achieving global net zero emissions by 2050. But that 1.5 degree goal is on life support and the machines are rattling. We are getting dangerously close to the point of no return," he said.

Sheikh Mohamed, whose country hosts Cop28 next year, said climate change had an impact on the stability and security of the world and called for efforts to be united to confront the challenge.

He said the UAE would continue to produce and export oil and gas to meet world demand. The carbon intensity of the country's oil was among the world's lowest, he said, and pledged to continue to work to reduce gas emissions in the UAE's large energy sector.

US President Joe Biden will address the two-week summit later this week.

Pakistan's Prime Minister Shahbaz Sharif, whose country was devastated by floods this summer, will speak on Tuesday.

British Prime Minister Rishi Sunak has arrived in Sharm El Sheikh and was expected to address the meeting on Tuesday.

Downing Street said Mr Sunak will announce in Sharm El Sheikh that his government will give £65.5 million to a clean energy innovation facility that provides grants to researchers and scientists in developing nations who work on clean technologies.

Another £90m will go to the conservation of the Congo Basin rainforest and £65m to support communities.

Mr Sunak met Sheikh Mohamed on the sidelines of the summit on Monday.

UN climate change executive secretary Simon Stiell during a press conference at the summit in Egypt. AFP
UN climate change executive secretary Simon Stiell during a press conference at the summit in Egypt. AFP

Simon Stiell, the UN climate change executive secretary, said 110 leaders had confirmed their participation in the two-week summit. They join nearly 27,000 government representatives, about 14,000 observers and more than 3,000 media representatives, he added.

“We always want more leaders,” said Mr Stiell, alluding to earlier forecasts that as many as 200 leaders would attend. “But I believe there is sufficient (leadership) right now for us to have a very productive outcome.”

He said the summit’s Egyptian presidency had created a “very rich and innovative series of sessions” for the leaders to take part in, including round table discussions.

However, the leaders of some of the world’s main carbon emitters — China and India — decided to stay away.

Mr Stiell sought to play down the significance of their absence.

“We have a sufficient number,” he said.

This year's climate summit is being held under the cloud of a geopolitical crisis — chiefly the Russia-Ukraine war and growing rivalry between the US and China — and deepening economic woes in most parts of the world because of higher energy and food costs.

Underscoring the danger of politicising the summit, Egyptian Foreign Minister and Cop27 president Sameh Shoukry spoke on Sunday against allowing the world's crises to interfere with the summit's proceedings.

However, Cop27 got off to a flying start on Sunday, when Mr Shoukry said the thorny question of “loss and damage” funding has been formally added to the agenda, something that had proved elusive for 30 years.

Cop27 president Sameh Shoukry during a press conference after the opening ceremony in Sharm El Sheikh. AFP
Cop27 president Sameh Shoukry during a press conference after the opening ceremony in Sharm El Sheikh. AFP

The question was initially brought up by small island states to help them deal with the devastating effects of climate change, but it was shut down by wealthier nations.

Climate funding so far has focused on cutting carbon dioxide emissions in an effort to curb climate change, while about a third of it has gone towards projects to help communities adapt to the effects.

“It’s a culmination of consultations during the past year and intense consultations over the past 48 hours,” Mr Shoukry told reporters at a news conference on Sunday. “It is a very fundamental issue that must be dealt with.”

There is no agreement yet over what should count as “loss and damage” in climate disasters. Mr Shoukry refused to be drawn into what mechanisms would be put in place to implement loss and damage and how much money would be needed.

A June report by 55 vulnerable countries estimated their combined climate-linked losses over the past two decades at about $525 billion, or about 20 per cent of their collective GDP.

A delegate from Lesotho on the first day of the UN climate summit in Egypt. Getty Images.
A delegate from Lesotho on the first day of the UN climate summit in Egypt. Getty Images.

The introduction of loss and damage to the agenda will be of particular interest to Africa, which Egypt has selected to champion its climate change-related demands from the industrialised world.

Africa is responsible for only 3 to 4 per cent of global emissions, despite having only 17 per cent of the world’s population.

“We aim to restore the 'grand bargain' … whereby developing countries agreed to increase their efforts to tackle a crisis for which they are far less responsible, in return for appropriate financial support and other means of implementation,” Mr Shoukry wrote in a letter to parties and observers at the summit.

Egypt is not without its significant financial needs to mitigate and combat climate change.

In an updated submission to the UN this year, Egypt said it faced a $246bn funding shortfall to meet its 2030 climate targets.

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: November 07, 2022, 4:52 PM