Scientists in Abu Dhabi say stricter air quality controls, transitioning to renewable energy and monitoring vehicle emissions are behind a reduction in the levels of air pollution in parts of the Middle East.
A study from Khalifa University (KU) in Abu Dhabi, using Nasa satellites, looking between 2003 and 2023, showed significant reductions after pollution levels increased during the first decade of the reporting period.
The research looked at the concentration of nitrogen dioxide (NO2) and sulphur dioxide (SO2), both generated by burning fossil fuels.
One of the study’s authors, Dr Diana Francis, assistant professor at KU and head of the university’s environmental and geophysical sciences lab, said that in the UAE “tighter air quality regulations and vehicle emission standards” from the mid-2010s have improved air quality. Other measures have also helped to lower pollution levels.
“Additionally, there has been increased investment in renewables and natural gas, reduced reliance on heavy fuel oil, lowering SO2 emissions, particularly in Iran, and the cleaner energy transitions still ongoing,” she said.
Cost of progress
The researchers reported a measurement area that included Qatar, Bahrain, and Dammam in Saudi Arabia recoded pollution levels increasing up to 2018, before they declined by 1.7 per cent per year. Dr Francis said until the mid-2010s, rapid development and increased vehicle use had raised NO2 levels, particularly in growing cities such as Dubai and Abu Dhabi.
“To accompany the economic development, emissions from industry also increased, such as power plants, oil refineries and manufacturing in the region, which may have contributed heavily to both NO2 and SO2 emissions,” Dr Francis added.
“Additionally, before [the mid to late 2010s], emissions controls and monitoring systems were less strict or inconsistently enforced due to limited environmental regulations at the time.”
However, from around the mid to late 2010s, the satellite data indicates significant declines in SO2 or NO2 in some places, including western Saudi Arabia, parts of Iran, Dubai and Abu Dhabi, which underscored “the importance of stringent air pollution controls”.
In another measurement area that included Dubai, Abu Dhabi and parts of the Gulf of Oman, there was an average 3.9 per cent annual reduction in NO2 levels after 2015. SO2 levels here, though, continued to increase, albeit only by a modest 0.31 per cent annually.
The study used data from Nasa’s Aura satellite to analyse levels of NO2 and SO2, allowing, the researchers said, for a more comprehensive analysis of pollution levels than land-based recordings, as measuring stations are present only in some locations.
The Aura satellite, which was launched in 2004 and orbits the world 14 times a day at an altitude of 705km, has an instrument that measures how much solar radiation is backscattered or reflected by components in the air.
The International Council on Clean Transportation announced in 2023 that the introduction of EU regulation level vehicle emission standards in the UAE had significantly reduced the release of nitrogen oxides and particulate matter from light-duty vehicles in the emirate.
This finding was based on a project carried out in spring 2023 with the Environment Agency - Abu Dhabi and other organisations.
Last year, The National reported how countries in the Middle East had the world’s highest levels of dangerous air pollution particles, which are causing millions of heart disease deaths globally each year, according to a study from the World Heart Foundation (WHF).
Tightening rules
While the UAE still trails EU nations in the implementation of vehicle emissions standards – the bloc applied a standard to new vehicles in 2006 – rules are being toughened. In a phased implementation from next January until July 2027, the EU’s stricter Euro 6B vehicle emissions standard will be applied to light and heavy-duty vehicles imported into the UAE.
Dr Francis said cutting levels of SO2 and NO2 was “vital” because these pollutants irritate the lungs and worsen asthma and other respiratory conditions.
“These gases particularly affect vulnerable groups like children, the elderly and people with lung conditions,” she said. “Long-term exposure can lead to chronic respiratory issues and reduced lung function. Therefore, controlling these pollutants improves air quality and protects public health.”
Asher Minns, executive director of the Tyndall Centre for Climate Change Research at the University of East Anglia in the UK, said to reduce levels of SO2 and NO2, it was necessary to stop burning fossil fuels, whether to generate electricity, refine oil or power vehicles.
He said transition to renewable energy was likely to have had a relatively modest impact on the region’s levels of pollution. “Not extracting and burning fossils fuels means less NO2 and SO2,” he added.
While there has been heavy investment in renewable power generation in the region, the study noted overall power demand was increasing in the Gulf by about 6 per cent annually.
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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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