Events like Cop28, the innovation shown in finding climate solutions and the acceptance of global warming as an existential threat should help reassure people that there is still a way out. AP
Events like Cop28, the innovation shown in finding climate solutions and the acceptance of global warming as an existential threat should help reassure people that there is still a way out. AP
Events like Cop28, the innovation shown in finding climate solutions and the acceptance of global warming as an existential threat should help reassure people that there is still a way out. AP
Events like Cop28, the innovation shown in finding climate solutions and the acceptance of global warming as an existential threat should help reassure people that there is still a way out. AP


How the climate change story ends is still in our hands


  • English
  • Arabic

May 19, 2023

News this week about the planet rapidly approaching the critical global-warming threshold of a 1.5°C rise above pre-industrial levels has frightened and dismayed many.

The report from World Meteorological Organisation scientists was published shortly after the world's fourth-warmest April since records began in 1950 and months ahead of the Cop28 summit in the UAE. Although some may fall into despondency at the enormity of the climate challenge, a closer look provides important context.

The rapid approach to this serious juncture has not been unexpected. An analysis from the UK Met Office in November last year claimed pledges to cut greenhouse gas emissions agreed to at the Cop26 climate change conference in Glasgow were unlikely to keep the global temperature rise to 1.5°C. The Met Office study, published in the journal Weather, claimed there was greater likelihood the world would pass the 1.5°C figure and then come back down to it by 2100.

This is not to downplay the serious changes that are taking place on our planet. The effects of climate change are already being felt in extreme weather phenomena and the economic, security and political problems that they can lead to. But important events like Cop28, the continuing innovation in finding solutions to mitigate climate change and the near-universal acceptance of global warming as an existential threat should go some way to reassuring people that there is still a way out.

Global warming is affecting many natural habitats, such as in Russia's Franz Josef Land archipelago. AFP
Global warming is affecting many natural habitats, such as in Russia's Franz Josef Land archipelago. AFP

Some countries have shown great determination and tenacity in tackling climate change. Last month, The National reported on eight nations that either achieved their net-zero emissions targets or substantially reduced their carbon footprint. Among them was Gabon – the world’s second-largest carbon sink after the Amazon – which has enacted policies to prevent deforestation and manage its natural resources sustainably. In South America, Guyana reached its net-zero goals in 2021. And while it recently became an oil producer, it has also removed subsidies from fossil-fuel production.

Closer to home, the UAE government – which aims to achieve net-zero emissions by 2050 – and companies that are based here are investing heavily in renewable forms of energy, such as solar power and hydrogen. In March it was reported that the Emirates is examining 28 hydrogen projects, of which seven have passed the financing stage. Smaller-scale projects are also using considerable ingenuity to turn the tide on climate change. One such project is that launched by Abu Dhabi organisation Terrax to turn landfill waste – a significant source of greenhouse gases – into a replacement for plywood.

It is true that the task seems daunting. A recent study by market research company Ipsos found that although sustainability still ranks within the top five issues of importance in many countries, there is also a growing feeling of despondence among people as to how much impact they can make on an individual level.

Dubai will host Cop28 in November, but the emphasis on finding solutions has already been laid down. Last month President Sheikh Mohamed told world leaders attending a virtual climate event hosted by US President Joe Biden that Cop28 will move beyond setting goals to achieving them.

The summit will also provide an opportunity for a global stocktake of where we are. Although the news is likely to be sobering, this does not justify falling into a state of fatalism. Headlines only give one part of the story. When it comes to the tale of climate change, we are very far from the final chapter. More importantly, how the story ends is still in our hands.

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.”

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Should late investors consider cryptocurrencies?

Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.

They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.

“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.

He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.

Dirham Stretcher tips for having a baby in the UAE

Selma Abdelhamid, the group's moderator, offers her guide to guide the cost of having a young family:

• Buy second hand stuff

 They grow so fast. Don't get a second hand car seat though, unless you 100 per cent know it's not expired and hasn't been in an accident.

• Get a health card and vaccinate your child for free at government health centres

 Ms Ma says she discovered this after spending thousands on vaccinations at private clinics.

• Join mum and baby coffee mornings provided by clinics, babysitting companies or nurseries.

Before joining baby classes ask for a free trial session. This way you will know if it's for you or not. You'll be surprised how great some classes are and how bad others are.

• Once baby is ready for solids, cook at home

Take the food with you in reusable pouches or jars. You'll save a fortune and you'll know exactly what you're feeding your child.

START-UPS%20IN%20BATCH%204%20OF%20SANABIL%20500'S%20ACCELERATOR%20PROGRAMME
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Forced%20Deportations
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Violence%20
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Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Company profile

Date started: 2015

Founder: John Tsioris and Ioanna Angelidaki

Based: Dubai

Sector: Online grocery delivery

Staff: 200

Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends

Revival
Eminem
Interscope

Key findings of Jenkins report
  • 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."
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UAE currency: the story behind the money in your pockets
What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence

Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

COMPANY PROFILE
Name: Mamo 

 Year it started: 2019 Founders: Imad Gharazeddine, Asim Janjua

 Based: Dubai, UAE

 Number of employees: 28

 Sector: Financial services

 Investment: $9.5m

 Funding stage: Pre-Series A Investors: Global Ventures, GFC, 4DX Ventures, AlRajhi Partners, Olive Tree Capital, and prominent Silicon Valley investors. 

 
Updated: May 19, 2023, 3:00 AM