After watching the achievements that the UAE has made with its Mars Mission led by a female minister, we know that nothing is impossible, particularly when it comes to changing things down here on Planet Earth.
Over the past few months, we have seen many commitments made by countries to reduce their carbon emissions but, sadly, they are not ambitious enough to limit global warming to a 1.5 °C rise. Thus far, the plans submitted by 75 countries to the UN “barely create a dent”. Based on the science, global inaction would be devastating to both our communities and our environment. Our current plans will only slow climate change down, but we need to change tack for the survival of our civilisation.
Our Founding Father, Sheikh Zayed, declared the importance of sustainability when he said: “On land and in the sea, our forefathers lived and survived in this environment. They were able to do so because they recognised the need to conserve it, to take from it only what they needed to live, and to preserve it for succeeding generations.” Sheikh Zayed’s ethos offers us wise guidance on how to best manage our resources today. This should be part of our local culture and shared with our children.
Green hydrogen will drive our economy
To realise these words, setting net-zero targets is imperative to drive different industries to start planning and achieving their individual net-zero journeys. “Net-zero” is a term used by companies and countries that have committed to move away from fossil fuels. Amazingly, as of December 10, 2020, Bhutan and Suriname are already net-zero. Finland has set a 2035 target and a number of countries have enshrined their targets into law: Sweden (2045), and the UK, France, Denmark, New Zealand and Hungary (2050). Many others have proposed legislation or policy documents targeting net-zero at various points between 2040 and 2060.
Moving away from fossil fuels may be daunting for a country that has built its foundation on them, but I am proud that our nation has put education at the forefront. Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, reaffirmed this in a speech during the Government Summit in 2015. “The question is, 50 years from now after we have loaded this last barrel of oil, are we going to feel sad? If our investment today is right, I think, dear brothers and sisters, we will celebrate that moment,” he said.
In this interdependent world that we live in, we must collaborate closely and form alliances, as they are key to tackling the world’s biggest sustainability and climate crisis challenges. We have seen these put into action during this pandemic, and I hope it will continue. However, to expedite the work that needs to be done, only cross-industry and cross-sector alliances can put these wheels in motion.
I believe the UAE will be a pioneer in the region in many key areas.
Take the circular economy, for example. By recycling and upcycling materials, we can stimulate the economy, create new jobs and save our finite resources. This year, the Cabinet approved a 10-year circular economy policy. I hope a National Extended Producer Responsibility scheme is created to the bolster this sector. By this, I mean having a policy in place whereby producers are made to take responsibility for managing the disposal of products they produce once those products are designated as no longer useful by consumers. Without such a scheme, it will be harder to attract investment.
The world will see more environmental disasters if governments do not act now. Reuters
The country is investing in alternative sustainable fuels that emit no carbon and are made using renewable energy. Without a doubt, hydrogen will be the next big energy product. Abu Dhabi Qabida, Mubadala and Adnoc have created an alliance to become an exporter of blue and green hydrogen in the near future. Green hydrogen will drive our economy in the areas of industry and mobility. It will also provide a waste management solution, as it can be produced from rubbish.
But we also need to establish a trusted carbon system that would allow the trading of credits among organisations and neighbouring countries. We need to create positive and valuable uses for carbon until economies can survive and thrive without it.
It is important to include the environment and society on our balance sheets through clear indices. We need, for instance, to incorporate environmental, social and corporate governance not only in investments but also in the way the public and private sectors procure materials. Businesses should be created to better society, communities and the environment and to preserve all of the above for future generations. Multi-sectoral funds and financing need to be allocated to incubate new technologies and to accelerate the transition to a low, or zero-carbon economy.
Green buildings are increasingly essential today. The construction sector accounts for 30 per cent of total energy used globally, and is responsible for approximately 25 per cent of carbon emissions. While the UAE is building greener buildings, we need to retrofit older buildings to make them less energy-intensive. Moreover, there is always a behavioural element when it comes to adopting new technologies. This leads me to support raising awareness and more education. Without it, we cannot change our norms and make the transition to positively impacting our planet.
Another area of improvement is the production of solar power. Over the years, it has become price competitive, and we are seeing more solar farms in the UAE. My hope is that we see a more decentralised system where people can opt to use solar panels on their houses as well as more efficient panels, so that they no longer require as much space.
While we focus on new energy sources and technologies, it is also crucial that we protect our environment. We need to use nature-based solutions to tackle desertification and support a carbon sequestration strategy. In 2020, the UAE committed to planting mangrove trees globally and has been protecting important ecosystems, such as wetlands. Moreover, the social enterprise that I co-founded, Mangroves for Mankind, aims to plant 150,000 trees this year.
A new economy is emerging – a green economy that will be circular – and it is set to create new 24 million new jobs. We need to expedite financing solutions that replace the carbon industry for the health of the planet and generate new forms of GDP. The world has changed considerably during the pandemic. There is no better time to rethink our current models, which have failed us and green our economy.
As the UAE approaches its 50th anniversary at the end of this year, let us pave the way for the green economy and honour the Founding Father’s vision.
Sheikha Shamma bint Sultan bin Khalifa Al Nahyan is chief executive officer of Alliances for Global Sustainability
Ziina users can donate to relief efforts in Beirut
Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”
Key facilities
Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
Premier League-standard football pitch
400m Olympic running track
NBA-spec basketball court with auditorium
600-seat auditorium
Spaces for historical and cultural exploration
An elevated football field that doubles as a helipad
Specialist robotics and science laboratories
AR and VR-enabled learning centres
Disruption Lab and Research Centre for developing entrepreneurial skills
Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
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.”
