In the Moroccan village of Senanat, 15-year-old Yassine used to skip school.
He wasn’t an optional truant, missing classes because of a lack of interest in his education. Rather, he was forced to walk long distances to collect water for his family.
The nearest source of fresh water used to be 3km away in the form of a small well in a neighbouring village.
To fetch it, Yassine piled up plastic containers on to a donkey cart, filled each to the brim with water and trotted back. The 5,000-litre haul lasted two weeks, at which time he would need to do it all over again.
Morocco is in the grip of its worst drought in 40 years. Erratic rainfall for the past four years has emptied reservoirs and decimated agricultural production. Rainfall this year was 64 per cent below average.
The dry weather is accelerating a water crisis that has been unfolding for decades: in 1960, a Moroccan could count on access to 2,560 cubic metres of water per year. Today, that figure has shrunk to about 600 cubic metres. The UN defines “water scarcity” as less than 1,000 cubic metres per person.
The severity of the drought has underscored the North African kingdom’s vulnerability to climate change. A July World Bank report said economic growth would dip to 1.3 per cent in 2022 from 7.9 per cent a year earlier and cited water scarcity’s blow to farming as the leading cause.
With few good options, the government has rationed supplies. Some farmers have abandoned their fields, and wheat and barley production was down 67 per cent this year.
The royal palace said in February it would spend 10 billion dirhams ($1.07 billion) to support farmers and improve water management.
Digging deeper
Remote villages such as Senanat, in western Morocco’s Safi province, are among the hardest hit. The community of 170 families is 45km from a major city.
Like many rural areas, its residents have historically relied on simple, hand-dug wells that tap aquifers a few metres below the surface. But amid the drought, this easier-to-reach water is running dry.
With no fresh rainfall, the most immediate solution is to tap deeper sources of groundwater. That’s the aim of Maa wa Namaa — Arabic for “water and development” — a Moroccan NGO launched in 2020.
The NGO first identifies communities most in need of a well, then it collects donations and appoints geological engineers to assess the feasibility of a site.
Its volunteers use robotic drills that can reach aquifers 300 metres below ground, far deeper than the traditional wells that dot Morocco's countryside. Each well has a solar panel that can operate its pump for 25 years.
Redouane Moumouh, head of Maa wa Namaa, launched the project after he came across a village in December 2019 that was in dire shape.
Water was becoming so scarce that the village was emptying out, with more than half of its population having fled.
Mr Moumouh and a few others volunteered to help build a new well and, six months after it was finished, residents began to return.
Maa wa Namaa has since built about 100 new wells, said Mr Moumouh, bringing fresh water to more than 47,000 Moroccans.
Senanat’s new well was built in January 2021. Before that, villagers had to pay 180 dirhams ($16.50) for a canister that could last three days, said Kacem Fathi, head of a local development organisation that works in Senanat.
In rural areas, where the average salary is $250 a month, it’s a price that’s out of reach.
“I used to go to work without peace of mind, knowing that I was leaving my family behind to deal with the water problem,” said Redouane, Yassine’s father.
The new well is only 30 metres from Redouane and Yassine's home. What was once a several-hour trip now takes a few minutes, meaning Yassine no longer has to skip class.
Wells do come with risks. Their potential for peril was brought into sharp relief after the tragic death of five-year-old Rayan Orham, who slipped down a 32-metre shaft last February.
The incident grabbed global headlines and prompted Saudi Arabia to order 2,450 of its abandoned wells to be filled.
Morocco has since passed legislation that stipulates fines and even prison for building illegal wells that break safety standards. Maa wa Namaa says their wells are fitted with covers to minimise risk.
The wells provide relief, but they won’t solve Morocco’s water scarcity problem. Overuse can drain aquifers and further deplete water needed for irrigation.
One way to prevent this would be to equip the wells with meters that track how much is extracted, said Faisal Aziz, professor of water engineering at Cadi Ayyad University.
Better yet would be sensors that allow the government to monitor water usage from afar.
“The state should use advanced metres. This is where scientific research comes in. They can rely on remote sensors [to track water usage],” he said.
In the long run, Morocco will need new sources of water. The government said it plans to build 20 desalination plants by 2030 and invest in wastewater treatment to reuse water for agriculture.
For now, Maa wa Namaa’s wells provide breathing room.
“These initiatives need to be expanded throughout the rest of Morocco,” Redouane said of the new well.
“People are still going thirsty because of lack of water.”
This article has been published in collaboration with Egab
HOW DO SIM CARD SCAMS WORK?
Sim swap frauds are a form of identity theft.
They involve criminals conning mobile phone operators into issuing them with replacement Sim cards, often by claiming their phone has been lost or stolen
They use the victim's personal details - obtained through criminal methods - to convince such companies of their identity.
The criminal can then access any online service that requires security codes to be sent to a user's mobile phone, such as banking services.
How Tesla’s price correction has hit fund managers
Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.
It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.
The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.
Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.
Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.
He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.
AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”
A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.
Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.
Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.
Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.
By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.
Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.
In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”
Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.
She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.
Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.
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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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What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
Brief scores:
Barcelona 3
Pique 38', Messi 51 (pen), Suarez 82'
Rayo Vallecano 1
De Tomas Gomez 24'
Other acts on the Jazz Garden bill
Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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