Investment in Istanbul's international prestige has come at a heavy price for ordinary residents. Fatih Saribas / Reuters
Investment in Istanbul's international prestige has come at a heavy price for ordinary residents. Fatih Saribas / Reuters
Investment in Istanbul's international prestige has come at a heavy price for ordinary residents. Fatih Saribas / Reuters
Investment in Istanbul's international prestige has come at a heavy price for ordinary residents. Fatih Saribas / Reuters

Earthquake preparedness is not a matter of politics


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The devastating earthquake that rocked Nepal last weekend and left thousands dead could easily repeat itself in a number of cities across the world. The prospect of natural disaster – whether flooding in Bangladesh or hurricanes in New Orleans – is forcing urban planners to rethink protection and preparedness. When it comes to earthquake preparedness, we need to look no further than Istanbul to see the fine line between proper city infrastructure and politicking.

The views of the Bosphorus have long intoxicated residents and travellers strolling the streets of the European side of Istanbul.

If you fix your gaze on the buildings these days, an annoying flickering light takes away from the ancient splendour of the city. These flashing lights are part of a system that detects vibrations in the ground and, in the case of an earthquake, shuts off the gas line in a building to avoid an explosion. These earthquake-detection boxes are an offensive but unavoidable reality of Istanbul life.

Last summer, I was shaken in my Istanbul flat by the tremors of an earthquake that originated in the Aegean Sea on the same fault line that extends to Istanbul’s borders. The ensuing panic in the city revealed Turks’ deeply held fear of the next big earthquake.

With 15 million residents, Istanbul sits close to one of the most active earthquake faults in the region. In 1999, a 7.6-magnitude earthquake struck the Turkish town of Izmit, nestled halfway between Istanbul and the Turkish capital Ankara, leaving nearly 17,000 people dead, one million homeless and billions of dollars in damage.

A report released last summer by scientists from Turkey and the Massachusetts Institute of Technology warned that a magnitude-seven or higher earthquake is building up on a quiet fault just eight kilometres west of Istanbul and could strike in the next decade. The way in which Istanbul has grown in the 20th century and the nature of the city’s housing stock has striking parallels with Nepal’s notoriously shoddy building standards.

Throughout the 1950s, the Turkish government spearheaded a nationwide push encouraging settlement in the country’s urban centres. Unable to accommodate droves of villagers from the Turkish heartland flooding Istanbul and Ankara, the government turned a blind eye to widespread informal settlements that popped up throughout its cities. Known in Turkish as gecekondu – meaning “built at night” – these informal settlements quickly became the backbone of Istanbul and still form the foundation of many neighbourhoods.

Similar to the housing stock in Nepal, gecekondu structures are woefully underprepared for even a mild earthquake and present the government with a grave challenge when it comes to disaster preparedness.

Recep Tayyip Erdogan, Turkey’s president and a former mayor of Istanbul, has made little effort to conceal his grand vision for the former capital city of the Ottoman Empire.

With plans to build Europe’s largest airport in Istanbul’s northern forests and a new bridge spanning the Bosphorus Strait, Mr Erdogan’s AKP has invested heavily in major infrastructure projects, at the expense of widespread earthquake-proofing of existing housing stock.

However, Mr Erdogan’s government did use a selective application of earthquake-preparedness to expropriate land and to push some residents to the margins of the city, allowing for the creation of new luxury apartments.

In the past 10 years, the city government has targeted a series of low-income neighbourhoods – most of them former gecekondu occupying prime locations. These houses were declared unfit – although researchers say about 90 per cent of Istanbul’s buildings could be categorised as such as they wouldn’t survive a serious earthquake.

The neighbourhood of Okymedani, a 10-minute drive from the city’s central Taksim Square, is a perfect example of these earthquake gentrification plans in action.

Sitting on a prime ridge in the centre of the city’s European side, Okymedani is made up of mostly Alevis, a Shiite minority in predominantly Sunni Turkey. For years the city government has coveted the neighbourhood’s land for gentrification.

When environmental protesters occupied Istanbul’s Gezi Park in May 2013 in opposition to plans to destroy one of the last green spaces in the central part of the city, they were quickly joined by thousands of residents who had been forced out or were in the process of being evicted from their homes under the guise of earthquake safety.

The Nepal disaster is evidence that there are no easy solutions to the problems of natural calamities. Our cities continue to grow at an alarming pace and sometimes priorities are misplaced for political reasons. Istanbul, for all its rapid growth, is a startling example of how investor desires can trump the needs of citizens. Earthquake preparedness in the urban world is no longer an issue for city councils but one that reaches to the very heart of political discourse.

jdana@thenational.ae

On Twitter: @ibnezra

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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.”

Islamophobia definition

A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.

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What is safeguarding?

“Safeguarding, not just in sport, but in all walks of life, is making sure that policies are put in place that make sure your child is safe; when they attend a football club, a tennis club, that there are welfare officers at clubs who are qualified to a standard to make sure your child is safe in that environment,” Derek Bell explains.

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Friday
Saint-Etienne v Montpellier (10.45pm)

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Q&A with Dash Berlin

Welcome back. What was it like to return to RAK and to play for fans out here again?
It’s an amazing feeling to be back in the passionate UAE again. Seeing the fans having a great time that is what it’s all about.

You're currently touring the globe as part of your Legends of the Feels Tour. How important is it to you to include the Middle East in the schedule?
The tour is doing really well and is extensive and intensive at the same time travelling all over the globe. My Middle Eastern fans are very dear to me, it’s good to be back.

You mix tracks that people know and love, but you also have a visually impressive set too (graphics etc). Is that the secret recipe to Dash Berlin's live gigs?
People enjoying the combination of the music and visuals are the key factor in the success of the Legends Of The Feel tour 2018.

Have you had some time to explore Ras al Khaimah too? If so, what have you been up to?
Coming fresh out of Las Vegas where I continue my 7th annual year DJ residency at Marquee, I decided it was a perfect moment to catch some sun rays and enjoy the warm hospitality of Bab Al Bahr.

 

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