The Middle East is the region by far the most threatened by water shortages. AFP
The Middle East is the region by far the most threatened by water shortages. AFP
The Middle East is the region by far the most threatened by water shortages. AFP
The Middle East is the region by far the most threatened by water shortages. AFP


The 76th UNGA must focus on the climate crisis


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September 22, 2021

A recently released video by k-pop group BTS performing their song "Permission to Dance" in the UN General Assembly (UNGA) hall has garnered millions of views. It is intended to raise awareness ahead of the 76th annual meeting of UNGA, for which over 100 heads of government and state, in addition to many more officials, are gathered in New York this week. Fears over Covid-19 mean this year’s assembly has been scaled down, but it is the biggest global gathering of officials since the pandemic, as last year's UNGA was mainly virtual. Of course, the issues up for discussion are as big as ever.

Instability in the Middle East and further afield are at the forefront of the agenda and, as is often the case, risk dominating it. There are other, longer-term but nonetheless vital issues on the world’s plate. One is climate change. Keeping the environment at the top of delegates' minds is crucial. In a matter of weeks, the UK will hold the UN Climate Change Conference (Cop26), where countries are set to gather to discuss ways to achieve a zero-carbon future by 2050.

In an interview with The National, President of Cop26 Alok Sharma said that climate change is “the biggest security risk for the world”. And yet, as British Prime Minister Boris Johnson recently expressed, determination to tackle the issue is flagging among countries with the biggest responsibility to do so. "It is the biggest economies in the world that are causing the problem, while the smallest suffer the worst consequences. And while progress is being made all over the world, the gulf between what has been promised, what is actually being delivered remains vast," Mr Johnson said.

Many of the countries with most to lose from international disengagement are smaller ones, unable to forge ahead on climate action without the initiative of larger economies. The Middle East's location already makes it an early flashpoint for many different environmental crises, including decreasing soil quality – a risk to food security – water shortages and rising summer temperatures. Of the 17 most water-stressed countries in the world, 11 are in the Mena region. It is also warming at twice the global average rate.

Similar challenges extend across the developing world. We will have to wait and see if great powers listen –including those that call publicly for dramatic change.

Geopolitical tensions among powerful countries will not help to create the necessary atmosphere of collaboration. An ongoing dispute over Australia's plans to acquire nuclear submarine technology with the help of the US and UK has destabilised further the West's relations with China. It is even driving a significant wedge between France and its old anglophone allies. It is, however, too early to be sure that this year's climate progress is well and truly scuppered. Countries should remember, as Mr Sharma stressed, that climate change, with its huge ramifications, ultimately trumps all strategic interests, even military ones.

How the UAE gratuity payment is calculated now

Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.

The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.

1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):

a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33

b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.

2. For those who have worked more than five years

c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.

Note: The maximum figure cannot exceed two years total salary figure.

How Tesla’s price correction has hit fund managers

Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.

It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.

The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.

Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.

Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.

He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.

AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”

A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.

Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.

Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.

Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.

By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.

Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.

In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”

Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.

She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.

Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.

Updated: September 22, 2021, 3:00 AM