The UAE’s coastal lagoons generate tens of millions of dirhams a year, highlighting the economic benefits of protecting marine habitats, a study has found.
Released by organisations including Emirates Nature – WWF, the research showed Umm Al Quwain's Khor Al Beidah, which is a haven for threatened species, and Abu Dhabi's Khor Faridah generate on average $22.75 million (Dh 83.56 million) each year, with about 17,800 people visiting both lagoons.
I call upon businesses and financing institutions to carefully consider these opportunities and integrate nature-based solutions into their long-term decision-making
Razan Al Mubarak,
International Union for Conservation of Nature president
“The coastal lagoon study demonstrates that benefits of these integral habitats extend beyond climate and biodiversity, presenting opportunities to safeguard existing industries such as our vital fisheries while catalysing innovation in growing areas such as eco-tourism, local food production and sustainable agriculture,” Dr Amna Al Shamsi, Minister of Climate Change and Environment, said.
Published by the “Nature-based Solutions (NbS) for Climate, Biodiversity and People” project, the study also called for coastal lagoons – described as “the nation’s greatest and most diverse natural capital” and covering 27 per cent of the UAE’s coastline – to be protected and sustainably managed.
Razan Al Mubarak, president of the International Union for Conservation of Nature, emphasised that more funding was needed to introduce nature-based solutions at a large scale, describing nature as “a powerful ally against climate change”.
She said the coastal lagoon study demonstrated to non-state organisations, including those in the private sector, “the economic benefits of protecting and restoring our coasts and marine habitats”.
“I call upon businesses and financing institutions to carefully consider these opportunities and integrate nature-based solutions into their long-term decision-making.”
When surveyed for the study, sixty-five per cent of residents and tourists said lagoons should be protected and they would pay around Dh40.80 ($11) to visit them.
With potential economic benefits in sight, Sheikh Majid Al Mualla, Chairman of Umm Al Quwain’s Department of Tourism and Archaeology and the High Committee for the Sustainable Blue Economy Strategy, said the emirate aimed to have a “nature-positive tourism model” as part of its “Sustainable Blue Economy Strategy 2031".
The study, Coastal lagoons: essential ecosystems to scale up Nature-based Solutions in the UAE, also found that several of the species that find a haven in the UAE’s lagoons are classified as endangered or critically endangered on the IUCN’s Red List, a database that assesses whether organisms are threatened.
These include whip rays, blacktip reef sharks, the giant guitarfish and halavi guitarfish. The guitarfish is only found in the Arabian Sea.
“Several of these lagoons have also been identified as important bird and biodiversity areas for numerous IUCN Red List species, including the resident Socotra cormorants and greater flamingos, as well as migrating waterbirds such as the great knot and greater sand plover,” the report said.
Officials behind the project added these habitats can protect against threats such as coastal erosion and inundation, and reduce the effects of climate change by storing “blue carbon”.
The study states that mangroves, seagrasses and salt marshes can store twice as much carbon as land forests. Over their 160-square-kilometre area, Khor Al Beidah and Khor Faridah store about 900,000 tonnes of carbon in living biomass and in the top 50cm of soil, according to the project.
This is equivalent to the annual carbon dioxide emissions of more than 160,000 UAE residents, and a lack of protection of such habitats risks releasing blue carbon – stored in sea or coastal environments – back into the atmosphere.
Funded by HSBC Middle East, the NbS project is a collaboration between the Ministry of Climate Change and the Environment, the Ministry of Economy, the Environment Agency – Abu Dhabi, the Government of Umm Al Quwain, Emirates Nature – WWF and Dubai’s International Centre for Biosaline Agriculture.
“It's the first of its kind to investigate the natural capital across the UAE’s top priority sites for credible nature-based solutions,” said Laila Mostafa Abdullatif, director general of Emirates Nature – WWF.
The project aims to develop additional eco-tourism and agroecology projects involving the public and private sectors that will support economic growth.
Endangered animals in the UAE: in pictures
THE APPRENTICE
Director: Ali Abbasi
Starring: Sebastian Stan, Maria Bakalova, Jeremy Strong
Rating: 3/5
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.”
Spain drain
CONVICTED
Lionel Messi Found guilty in 2016 of of using companies in Belize, Britain, Switzerland and Uruguay to avoid paying €4.1m in taxes on income earned from image rights. Sentenced to 21 months in jail and fined more than €2m. But prison sentence has since been replaced by another fine of €252,000.
Javier Mascherano Accepted one-year suspended sentence in January 2016 for tax fraud after found guilty of failing to pay €1.5m in taxes for 2011 and 2012. Unlike Messi he avoided trial by admitting to tax evasion.
Angel di Maria Argentina and Paris Saint-Germain star Angel di Maria was fined and given a 16-month prison sentence for tax fraud during his time at Real Madrid. But he is unlikely to go to prison as is normal in Spain for first offences for non-violent crimes carrying sentence of less than two years.
SUSPECTED
Cristiano Ronaldo Real Madrid's star striker, accused of evading €14.7m in taxes, appears in court on Monday. Portuguese star faces four charges of fraud through offshore companies.
Jose Mourinho Manchester United manager accused of evading €3.3m in tax in 2011 and 2012, during time in charge at Real Madrid. But Gestifute, which represents him, says he has already settled matter with Spanish tax authorities.
Samuel Eto'o In November 2016, Spanish prosecutors sought jail sentence of 10 years and fines totalling €18m for Cameroonian, accused of failing to pay €3.9m in taxes during time at Barcelona from 2004 to 2009.
Radamel Falcao Colombian striker Falcao suspected of failing to correctly declare €7.4m of income earned from image rights between 2012 and 2013 while at Atletico Madrid. He has since paid €8.2m to Spanish tax authorities, a sum that includes interest on the original amount.
Jorge Mendes Portuguese super-agent put under official investigation last month by Spanish court investigating alleged tax evasion by Falcao, a client of his. He defended himself, telling closed-door hearing he "never" advised players in tax matters.
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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.
A Long Way Home by Peter Carey
Faber & Faber
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The biog
Name: Sarah Al Senaani
Age: 35
Martial status: Married with three children - aged 8, 6 and 2
Education: Masters of arts in cultural communication and tourism
Favourite movie: Captain Corelli’s Mandolin
Favourite hobbies: Art and horseback ridding
Occupation: Communication specialist at a government agency and the owner of Atelier
Favourite cuisine: Definitely Emirati - harees is my favourite dish
Company%20Profile
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Story%20behind%20the%20UAE%20flag
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The biog:
Languages: Arabic, Farsi, Hindi, basic Russian
Favourite food: Pizza
Best food on the road: rice
Favourite colour: silver
Favourite bike: Gold Wing, Honda
Favourite biking destination: Canada
Scores
New Zealand 266 for 9 in 50 overs
Pakistan 219 all out in 47.2 overs
New Zealand win by 47 runs
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Zayed Sustainability Prize
The specs: 2018 Ford Mustang GT
Price, base / as tested: Dh204,750 / Dh241,500
Engine: 5.0-litre V8
Gearbox: 10-speed automatic
Power: 460hp @ 7,000rpm
Torque: 569Nm @ 4,600rpm
Fuel economy, combined: 10.3L / 100km
RESULTS
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Confirmed%20bouts%20(more%20to%20be%20added)
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GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900