A meeting of crisis management officials in Dubai this week heard the UAE could experience a 30 per cent increase in rainfall in the near future. Antonie Robertson / The National
A meeting of crisis management officials in Dubai this week heard the UAE could experience a 30 per cent increase in rainfall in the near future. Antonie Robertson / The National
A meeting of crisis management officials in Dubai this week heard the UAE could experience a 30 per cent increase in rainfall in the near future. Antonie Robertson / The National
A meeting of crisis management officials in Dubai this week heard the UAE could experience a 30 per cent increase in rainfall in the near future. Antonie Robertson / The National


How to future-proof a city


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November 14, 2024

On October 20, 1982, extreme rainfall hit eastern Spain. The resulting torrent of water caused Valencia’s Jucar river to rise and spill over a major dam above the town of Tous. At least eight deaths, the evacuation of 100,000 people, as well as serious economic and environmental damage were the consequences of what has been described as one of the worst socio-natural disasters in 20th-century Spain.

Earlier this month, deadly flooding returned to Spain; with more than 200 fatalities reported, Valencia was among the worst-hit provinces. Many people in this region will sympathise – in April, Dubai was struck by the worst floods on record and more than a dozen people lost their lives in neighbouring Oman as a direct result of powerful storms and torrential rainfall. All these cases prove the critical need to future-proof our communities in a rapidly changing climate.

The question is: how best to do so? Research on the topic has made it clear that effective future-proofing should combine improvements to roads, homes and drains with non-engineering solutions. An investigation into the Tous Dam disaster published by academics from the Autonomous University of Barcelona and the University of California, Berkeley found that some policymakers prioritised flood protection measures of the “‘hard’ engineering kind” over non-structural preparations such as insurance programmes or land-use planning.

The UAE is combining the best of both approaches and the response to the worst rains in 75 years was swift. President Sheikh Mohamed ordered a review of the country’s infrastructure and during a Cabinet meeting on April 24, Sheikh Mohammed bin Rashid, Prime Minister and Ruler of Dubai set out a Dh2 billion ($540 million) relief package for citizens.

Since then, there has been multi-agency emergency planning and the creation of a special committee to come up with practical solutions. Two months after the April floods, Dubai Municipality completed a Dh93 million revamp of its public beaches to reduce erosion, as well as raising beach levels to avoid flooding during storms. In Sharjah, the government last month approved the first phase of a Dh400 million rainwater drainage project.

However, this engineering and relief work is being complimented by new ways of thinking about urban planning and preparedness. Transport is a good example of how the UAE is exploring ways to avoid the kind of scenes witnessed in April when floods halted traffic, stranded motorists and damaged cars for a few days. This week, the results of two surveys by the Roads and Transport Authority and Dubai government found that flexible hours and remote-working policies could ease road congestion by cutting peak-hour traffic by 30 per cent. At the same time, work on the country’s first air-taxi station has begun at Dubai International Airport.

Centuries ago, the inhabitants of low-lying Amsterdam worked hard to protect their city after the catastrophic All Saints’ Flood of 1170. Emirati cities are much younger and have the time and resources to adapt

If, as Dr Mohammad Al Ebri, director of meteorology at the National Centre of Meteorology suggested at a crisis-management event Dubai this week, there could be a 30 per cent increase in rainfall in the future having more employees working from home and off the roads could keep people safe and reduce disruption to the economy. This is just one example of the sort of joined-up thinking that will be vital in the years ahead.

Centuries ago, the inhabitants of low-lying Amsterdam worked hard to protect their city after the catastrophic All Saints’ Flood of 1170. Emirati cities are much younger and have the time and resources to adapt. More widely, the UAE is acutely aware of “the nation's vulnerability to even slight increases in sea levels, coastal erosion and flooding of low-lying areas” as a November report from the Ministry of Climate Change and Environment makes clear.

Urban planning is one of the topics for discussion at the Cop29 climate summit currently taking place in Baku. The approach taken by the UAE to future-proof its cities for a changing world could inform that conversation and many like it in the years ahead.

UAE currency: the story behind the money in your pockets

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.”

The Laughing Apple

Yusuf/Cat Stevens

(Verve Decca Crossover)

TRAP

Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue

Director: M Night Shyamalan

Rating: 3/5

Updated: November 14, 2024, 4:46 AM