As climate change dominates global discussions, some alarming events may have slipped under the radar.
The Arabian Gulf endured extreme heat and humidity in mid-July, with heat indexes soaring to 60-65°C in some areas. In Abu Dhabi, temperatures surged to 61°C, while Oman's Khasab Air Base recorded a blistering 58°C.
According to data from the National Oceanic and Atmospheric Administration, sea surface temperatures were as warm as 35°C during the same time. Researchers have pointed out that this region could experience dangerous heat levels regularly over the next 30 to 50 years.
Meanwhile, severe droughts are becoming more widespread, as evidenced by the Brazilian port of Manaus reaching record-low water levels last October and Nepal experiencing below-average winter rainfall for six out of the past 10 years.
While not a silver bullet, rain enhancement provides a proactive measure that can help mitigate water shortages
The increasingly dry weather and escalating water crisis directly threaten food security, public health and livelihoods. Countries such as Spain and South Africa are experiencing devastating agricultural losses due to prolonged dry spells, with cities such as Cape Town having had to implement water restrictions to manage shrinking resources.
These issues are not isolated. They're symptomatic of a warming planet, where rising temperatures speed up the water cycle, intensifying rainfall in some areas and worsening droughts in others.
The UN predicts that by 2050, drought could affect 75 per cent of the global population. Even more alarming, by 2100, rising temperatures could render groundwater undrinkable for up to 75 million people worldwide, according to the Karlsruhe Institute of Technology in Germany.
In this context, the case for rainfall enhancement as a potential solution becomes more compelling. The UAE, with its naturally arid climate, has long sought innovative approaches to diversify its water-food-energy nexus. Significant strides have been made towards energy-efficient solutions. However, two-thirds of our domestic water needs are still met by groundwater, and with rising temperatures, water scarcity remains a pressing concern.
This has led us to explore forward-thinking solutions, including the UAE Research Programme for Rain Enhancement Science (UAEREP), in its 10th year, which contributes to advancing rain enhancement science through innovative solutions.
Rainfall enhancement applications have been employed worldwide for decades. This solution is more relevant today due to recent scientific advancements that have clearly demonstrated its effectiveness by distinguishing between natural and induced precipitation. This has prompted several countries, including India, to invest millions in rainmaking technology. The technology is also being explored as a tool to address air pollution in Pakistan, mitigate forest fires in Indonesia and sustain water levels that are safe for maritime navigation through the Panama Canal.
The UAE's rain-enhancement programme stands out for its novel approach, emphasising global collaboration, innovative technology, and multidisciplinary research. This is all to address the water security challenges faced by arid and semi-arid regions across the globe. By working at the intersection of water, energy, food and the environment, UAEREP is establishing rainfall enhancement as a key component of sustainability and climate change adaptation strategies.
Under the patronage of Sheikh Mansour bin Zayed, Vice President, Deputy Prime Minister and Chairman of the Presidential Court, we intend to accelerate research and development, offering grants of up to $1.5 million for each of the three winning research proposals. The programme has funded 14 groundbreaking projects to date, cementing the UAE’s leadership in scientific innovation and rain enhancement technology. The sixth cycle of the programme will begin soon, continuing to explore new areas for development.
In parallel, we are expanding our unique international platform, the International Rain Enhancement Forum, created by the government for the global rain enhancement scientific community. This forum provides a space to discuss the latest advancements and offers new researchers opportunities to collaborate with leading scientists worldwide.
Since 2016, UAEREP has invested more than $22.5 million in research grants to 14 principal investigators, supported by 208 researchers from 45 institutions worldwide. Our vision is to pool knowledge, resources and technologies to develop more effective methods of increasing rainfall where it is most needed.
Complementarily, Abu Dhabi’s G42 has teamed up with Nvidia to develop AI-driven solutions that improve global weather forecasting using Nvidia’s Earth-2 platform.
This partnership includes a climate tech lab in Abu Dhabi, which will create tailored climate solutions. In line with the UAEREP mission, this initiative supports the UAE’s broader vision of leading from the front by connecting climate science with societal benefits.
Critics may point to uncertainties about the long-term effects and scientifically flawed conspiracy theories of manipulating weather systems, but the urgency of the water crisis demands the exploration of all viable solutions. While not a silver bullet, rain enhancement provides a proactive measure that can help mitigate water shortages and offer relief to regions struggling with drought and increasingly unbearable heat.
The method also fits into larger water management strategies to build resilience against climate change. While reducing emissions and adopting sustainable practices remain critical, this domain offers a complementary remedy for regions in crisis. It represents a step towards adaptive solutions that buy time while long-term climate mitigation efforts continue. Ultimately, the future of water security depends on our capacity to innovate, collaborate and take decisive action.
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What is a virtual bank?
The Hong Kong Monetary Authority defines it as a bank that delivers services through the internet or other electronic channels instead of physical branches. That means not only facilitating payments but accepting deposits and making loans, just like traditional ones. Other terms used interchangeably include digital or digital-only banks or neobanks. By contrast, so-called digital wallets or e-wallets such as Apple Pay, PayPal or Google Pay usually serve as intermediaries between a consumer’s traditional account or credit card and a merchant, usually via a smartphone or computer.
What’s the draw in Asia?
Hundreds of millions of people under-served by traditional institutions, for one thing. In China, India and elsewhere, digital wallets such as Alipay, WeChat Pay and Paytm have already become ubiquitous, offering millions of people an easy way to store and spend their money via mobile phone. Indonesia, Vietnam and the Philippines are also among the world’s biggest under-banked countries; together they have almost half a billion people.
Is Hong Kong short of banks?
No, but the city is among the most cash-reliant major economies, leaving room for newcomers to disrupt the entrenched industry. Ant Financial, an Alibaba Group Holding affiliate that runs Alipay and MYBank, and Tencent Holdings, the company behind WeBank and WeChat Pay, are among the owners of the eight ventures licensed to create virtual banks in Hong Kong, with operations expected to start as early as the end of the year.
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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.”