Insight and opinion from The National’s editorial leadership
July 21, 2022
Travellers from the Middle East who touched down at London’s Heathrow Airport this week were in for a shock. Fleeing the summer heat to Europe’s tamer climes has become something of a tradition for many families in the region. But at 1pm GMT on Tuesday, Heathrow’s weather station reported an all-time temperature high of 40ºC, one degree higher than the mercury in Abu Dhabi.
In countries like the UAE, Saudi Arabia and Iraq, 40ºC is about average for the end of July. In the UK, it is almost double the norm for this time of year. Elsewhere in Europe, particularly in Spain and France, this heatwave has brought wildfires of a scale unseen in 30 years. Portuguese officials have reported more than 1,000 heat-related deaths in the past week.
Perhaps the only people who have not been taken by surprise – though they have been no less distraught – are the world’s climate scientists. They have warned for years that the world’s global average temperature is only rising, and that extreme heat events will soon become a feature – not a bug – of life on Earth.
What is done cannot be undone, at least not without great difficulty; scientists have by now persuaded most governments and much of the general public that humans have damaged the planet’s atmosphere sufficiently that a return to a pre-industrial climate is probably not in the cards. But a course correction that preserves and, indeed, improves today’s climate to a significant extent remains possible. The devastation seen in Europe this week ought to provide a jolt to the global conscience that accelerates much-needed change to bring down carbon emissions. A number of countries, like the UAE and France, are already leading efforts to ensure a smart energy transition.
Perhaps the only people who have not been taken by surprise – though they have been no less distraught – are the world’s climate scientists
Clean energy is now cheaper than ever. More importantly, thanks to huge investment in the sector and sophisticated production processes for solar panels and wind turbines, it is cheap even in non-relative terms. Greater attention is also being given to hydrogen and nuclear power.
A much more difficult task – though it shouldn’t be – is investing in a more peaceful, stable world. Even before this week’s heatwave, Europeans were bracing for tough times ahead. Russia, which is under European sanctions, is a primary supplier of much of the continent’s natural gas. This month, several EU countries, as well as the UK, warned their citizens that ample energy supplies for the winter are far from assured in the absence of any diplomatic resolution to the Ukraine war. Thanks to unprecedented demand this month for air conditioning and cooling systems, the strain will be even greater.
Agriculture, too, is expected to suffer. “We are expecting to see major impacts on agriculture,” said Petteri Taalas, head of the World Meteorological Organisation, on Tuesday. “During previous heatwaves in Europe, we lost big parts of harvest.”
The world is already in the midst of a food crisis – exacerbated, again, by the war in Ukraine and growing desertification. A poor harvest in Europe will have knock-on effects across the world. All of this makes innovations in agri-tech more important than ever.
Tackling climate change is a big-picture problem. It requires a long-term perspective, mental stamina and patience for immediate sacrifices to bear fruit many years from now. In the intervening time, however, it throws the smaller picture – the damage caused by war, poor governance and persistent, widespread poverty – into sharp relief. The world must find a way to become more neighbourly, and do it quickly, because the next heatwave is inevitable. We must hope it hits a more peaceful, co-operative planet, rather than today’s crisis-ridden one.
Starring: Arnold Schwarzenegger, Linda Hamilton, Mackenzie Davis
Rating: 3/5
Mia Man’s tips for fermentation
- Start with a simple recipe such as yogurt or sauerkraut
- Keep your hands and kitchen tools clean. Sanitize knives, cutting boards, tongs and storage jars with boiling water before you start.
- Mold is bad: the colour pink is a sign of mold. If yogurt turns pink as it ferments, you need to discard it and start again. For kraut, if you remove the top leaves and see any sign of mold, you should discard the batch.
- Always use clean, closed, airtight lids and containers such as mason jars when fermenting yogurt and kraut. Keep the lid closed to prevent insects and contaminants from getting in.
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.”
Total transactions: over $800,000 since January, 2018
Investors in Jaib's mother company Alpha Apps: Aramex and 500 Startups
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
UAE currency: the story behind the money in your pockets
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Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)