The Middle East and North Africa is one of the most water-scarce regions of the world. Already plagued by a lack of freshwater resources, it also faces climate change, population growth and poor management, which threaten to affect the lives of millions.
The National’s correspondents across the region spoke to the people most affected to understand the extent of the issue and where hope for change may lie.
The thick maple tree in Baalchmay, a town carved into the hills of the Mount Lebanon region, almost acts as a dividing line on the road in the lower parts of the area. Perhaps about 200 years old, the tree is so broad that it is nearly as wide as the small cars passing by.
Only metres away is a spring. It is said the proximity of the water nearby allowed the maple tree and its thick branches to grow to such an extent, and survive previous conflicts that hit the area.
“In the past, the story goes that if you got a shovel and were just digging a little bit, water would come from the ground. That’s how rich the area was with water,” said Adham Al Danaf, the mayor of Baalchmay, a town of about 4,500 Lebanese residents and up to 3,000 refugees.
“What we always say about the village is that it’s like the human body,” added Jamil Al Danaf, a water specialist at the municipality.
“No matter where you take a small pin and poke it, blood comes out — that’s what water is in Baalchmay. Where ever you dig, you’re going to find water.”
But for the residents of the town, these anecdotes belie the current water crisis they face. In an area supposedly blessed with an abundance of water beneath the soil, why do the people of Baalchmay suffer — like many places in Lebanon — from a severe lack of water?
In Baalchmay, as is the case in much of the country, the lack of electricity is to blame. Lebanon’s dilapidated energy infrastructure, heavily damaged in the 1975-1990 Civil War, has for decades limped on, unable to supply the amount of electricity that is demanded.
But since the start of the economic crisis in 2019, described by the World Bank as one of the worst in modern history, the problem has been become more acute. State electricity typically is only available for a few hours a day, if that. Those who can afford it have to turn to expensive diesel-guzzling private generators.
“It’s linked directly to the electricity issue,” said the mayor. “You know the electricity problem in Lebanon. Whenever we don’t have electricity, we don’t have water.”
According to the mayor, about seven years ago public water would be pumped into a giant water tanker that sits at the top the village before being distributed among residents about twice a week. Today, this only happens once every other month.
Last summer, Unicef warned that the health of millions in Lebanon, a country of about six million, was as at risk because of its water crisis.
The UN agency said state providers were unable to supply enough water — “largely as a result of the power crisis” — but also because soaring inflation means it is prohibitively expensive to maintain infrastructure and afford parts.
In Baalchmay, residents have been forced to adapt. Typically they buy water from private sources but that is becoming increasingly difficult as Lebanon’s economic crisis tightens its grip.
“It’s not a well-off municipality. People can barely get by covering their other needs, let alone water,” the mayor said.
Resident Jamila Abi Merched has had to find ways to make the limited water she gets stretch further.
“To save water, I have used the water in many ways.” For example, the water she uses to do the laundry is also used to clean the floors of her home.
“I have no trust in any of the water quality that is coming. I wash the vegetables and I’m very worried about the water. But you don’t have a choice,” she said.
Her husband said many people in the town have been forced to cut down on showers — perhaps only showering once every four or five days now.
Born and raised in Baalchmay, Mr Abi Merched said the water situation has been degenerating steadily since 1995.
“Now things are going backwards not forwards,” he said.
In the best scenario, they get one hour of government water every 15 days — a rarity. To be able to live a “fair life”, Mr Abi Merched said the family would have to pay up to 2 million Lebanese pounds ($133) a week to private water suppliers. Instead, they have installed a rainwater collection system on the roof.
The town, however, may have a solution. A number of years ago, a well was built further down the hill to support Baalchmay. But with soaring fuel costs, limited electricity and the wider economic crisis, it has never been fully in operation.
The mayor had a private generator installed using his own money and donations from the local community but it has had limited effect so far because of the costs involved.
According to the mayor, it would take up the municipality's entire budget for the month to pay for the diesel needed to run the generator to provide sufficient water for the area — and that’s not accounting for maintenance and other related costs.
But now the town believes it has found an “alternative” solution: solar energy. It has purchased 230 solar panels using funding from the Japanese embassy and with support from the Environment Academy — a project at the American University of Beirut. The Environment Academy worked with experts, a team from the local community and the municipality to find the solution.
By installing the solar panels next to the well, it is hoped the resulting electricity will be sufficient to pump the water and supply the town.
The project is expected to get started in the coming months, and to become the town's main water source.
The concept has been replicated elsewhere, again with the support of the Environment Academy. In Bedghane, a village south-east of Beirut with a population of about 2,000, and where the last remnants of winter can still be seen, a wall of solar panels overlooks the valley.
The village previously suffered from the same water supply issues that plague much of Lebanon but today “around 90 per cent of water problems [have been] fixed because of the solar panels”, said Shayekh Raydan Shayya, who lives in Bedghane.
Residents say the installation of the solar panels has helped alleviate some of the problems they face amid the devastating economic crisis.
But, for now, these are very localised solutions in two relatively small and cohesive populations.
For most of the country, water shortages are just one of a litany of problems people are encountering every day.
“People are barely managing,” said Baalchmay's mayor. “They are managing their lives in order to survive in a difficult situation.”
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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.”
TOURNAMENT INFO
Women’s World Twenty20 Qualifier
Jul 3- 14, in the Netherlands
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UAE squad
Humaira Tasneem (captain), Chamani Seneviratne, Subha Srinivasan, Neha Sharma, Kavisha Kumari, Judit Cleetus, Chaya Mughal, Roopa Nagraj, Heena Hotchandani, Namita D’Souza, Ishani Senevirathne, Esha Oza, Nisha Ali, Udeni Kuruppuarachchi
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SIM swap: Fraudsters duplicate the SIM of your mobile number without your knowledge or authorisation, allowing them to conduct financial transactions with your bank.
Identity theft: Someone illegally obtains your confidential information, through various ways, such as theft of your wallet, bank and utility bill statements, computer intrusion and social networks.
Prize scams: Fraudsters claiming to be authorised representatives from well-known organisations (such as Etisalat, du, Dubai Shopping Festival, Expo2020, Lulu Hypermarket etc) contact victims to tell them they have won a cash prize and request them to share confidential banking details to transfer the prize money.
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Global state-owned investor ranking by size
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China
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Canada
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