Iraq and Turkey are working on a comprehensive agreement to solve a dispute over water rights, Iraq’s Water Resources Minister said on Sunday.
Iraq seeks a “fair and equitable” share of water from the Tigris and Euphrates rivers, which account for more than 90 per cent of Iraq's fresh water, said the ministry.
Both rivers originate in Turkey, while the Tigris is also fed by several tributaries from neighbouring Iran.
Turkey has built several dams on the rivers, while Iran has diverted tributaries to its land.
For decades, Iraq has failed to convince both countries to reach agreements on how to ensure a fair share of water. Both argue that they, too, suffer from scarcity of water and that Iraq uses outdated irrigation methods.
“We have been in lengthy discussions for years to reach a bilateral agreement [on water], but unfortunately we have not reached a bilateral deal with Turkey, Minister Aoun Diab Abdullah said.
“Now, the government’s intention is clear and serious with the aim to reach a comprehensive and complete agreement with Turkey that covers all aspects,” Mr Abdullah added.
“There are big interests, there is a trade exchange, there are economic interests, including the Development Road [project] and there are security matters,” he said.
“All will be put in one basket in which the water is the priority,” he continued, warning that “it’s dangerous to be lenient with this matter”.
He struck a positive tone to reach such a deal but refused to give more details on the discussions.
The minister hailed the co-operation with Iran this year that led to “a remarkable achievement” in releasing enough water to the Darbandikhan Dam in Diyala province in central Iraq and from Karun River to Basra in the south.
Water flows in Tigris have exceeded 600 cubic metres per second, thanks to the latest rains in the north and the release of water at one of Turkish dams for power generation, he said.
The current flows in Tigris are “at good levels” and are increasing the water reserves at dams which “were limited and we faced a great challenge in summer”, he said. “Now what is flowing to the reservoir of Mosul Dam is more than what is released and that will build up good water reserves,” he added.
But flows at the Euphrates “are still modest” with no more than 220 cubic metres per second, an issue that “has political dimensions related to Turkey's stance towards Qasad [US-backed, Kurdish-led Syrian Democratic Forces] and the Syrian government,” he added.
Turkey is one of Iraq’s main trade partners. Turkish President said in March that the volume of trade between the two neighbouring countries “broke the record”, exceeding $24 billion last year.
At least 500,000 barrels of oil a day were exported through a pipeline to the Turkish port of Ceyhan before they were halted in March over a legal battle between Baghdad and Ankara.
Turkey is also seeking Baghdad's co-operation to fight the Turkish-Kurdish dissident group Kurdistan Workers' Party, or PKK, which has bases in the Kurdistan Region of Iraq. PKK is designated as a terrorist group by the US and the EU.
Iraq has suffered severe environmental degradation and water scarcity as a result of climate change, alarming levels of pollution and mismanagement.
The country is experiencing its worst drought in decades, with temperatures above 50°C last summer. Many of Iraq’s lakes have shrunk.
The country is ranked the fifth most vulnerable in the world to climate change, the UN Environment Programme reported.
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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
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Total funding: Self funded
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)
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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