FSO Safer, an oil storage tanker stranded off the coast of the Houthi-controlled port of Hodeidah. EPA
FSO Safer, an oil storage tanker stranded off the coast of the Houthi-controlled port of Hodeidah. EPA
FSO Safer, an oil storage tanker stranded off the coast of the Houthi-controlled port of Hodeidah. EPA
FSO Safer, an oil storage tanker stranded off the coast of the Houthi-controlled port of Hodeidah. EPA

A disaster is waiting to happen on the Yemeni coast


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An oil tanker that has been decaying off the coast of Ras Issa, in Yemen, for the past 32 years now threatens to spill its contents or even explode at any time. A single spark could set the FSO Safer alight, experts have told The National. Unless urgent action is taken, the 45-year-old ship is a calamity waiting to happen.

While a selfless crew keeps the Yemeni coast safe, the leaders of the country's Houthi rebel movement hold on to the collapsing tanker as a bargaining chip. For the past five years, the Safer has had no repairs, and has been manned by a team of five to seven people. Their expertise and efforts have kept disaster at bay in the face of cynical politicking.

The Safer was due to be decommissioned in 2015, when the Yemeni civil war erupted. The rebels who have held onto it since hope to sell the oil it carries on the black market to support their military campaign. Their imagined profits would never match up to the cost of the very real impending environmental catastrophe.

The Houthis have repeatedly claimed they will grant UN experts access to the ship, but have instead delayed or cancelled such visits. In June, they agreed to have a specialist team assess damages and make repairs, only to renege that promise, too.

Meanwhile, the rebels refuse to offload the ship’s 1.1 million barrels of oil, estimated to be worth up to $80 million. The Aden-based Yemeni government, which is internationally recognised and controls the eastern part of the country, would rather sell the oil to pay salaries across the country.

The Houthi control over the ship has jeopardised Yemeni livelihoods, international commerce and the ecosystems of the Red Sea. Heads of EU missions to Yemen said on Tuesday that they would hold the rebels responsible should anything happen to the tanker.

An oil spill in Ras Issa would threaten fisheries and desalination plants in the region. Many Yemeni families rely on these industries to earn a living, but also for food and drinking water. The disruption could also jeopardise shipping lanes and the western ports of Hodeidah and Salif as well as Ras Issa, on which Yemen collectively relies to receive 80 per cent of all humanitarian aid.

The Houthi control over the ship has jeopardised Yemeni livelihoods, international commerce and the ecosystems

The consequences of an oil spill or an explosion could, however, extend far beyond Yemen. It could damage ecosystems or hinder food security in Saudi Arabia, Sudan, Djibouti and Eritrea, and expose more than 8m people to dangerous pollutants.

The UN, the Yemeni government and international experts have warned about the potential for catastrophe for years, but the Houthis refuse to put the interests of Yemeni people above their own short-termed gains. Every day that the Safer continues to be at sea in its present condition, the risk of a man-made disaster increases. The Houthis must not be allowed to destroy Yemen's coast. The oil on the tanker must be offloaded, and the ship decommissioned, even if the parties to the country's conflict have yet to reach a consensus.

Roll of honour 2019-2020

Dubai Rugby Sevens

Winners: Dubai Hurricanes

Runners up: Bahrain

 

West Asia Premiership

Winners: Bahrain

Runners up: UAE Premiership

 

UAE Premiership

Winners: Dubai Exiles

Runners up: Dubai Hurricanes

 

UAE Division One

Winners: Abu Dhabi Saracens

Runners up: Dubai Hurricanes II

 

UAE Division Two

Winners: Barrelhouse

Runners up: RAK Rugby

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
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Sukuk explained

Sukuk are Sharia-compliant financial certificates issued by governments, corporates and other entities. While as an asset class they resemble conventional bonds, there are some significant differences. As interest is prohibited under Sharia, sukuk must contain an underlying transaction, for example a leaseback agreement, and the income that is paid to investors is generated by the underlying asset. Investors must also be prepared to share in both the profits and losses of an enterprise. Nevertheless, sukuk are similar to conventional bonds in that they provide regular payments, and are considered less risky than equities. Most investors would not buy sukuk directly due to high minimum subscriptions, but invest via funds.

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Started: 2018

Founders: Eslam Hussein and Pulkit Ganjoo

Based: Dubai

Sector: Transport

Size: 9 employees

Investment: $1,275,000

Investors: Class 5 Global, Equitrust, Gulf Islamic Investments, Kairos K50 and William Zeqiri

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Skewed figures

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Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Company profile

Company: Verity

Date started: May 2021

Founders: Kamal Al-Samarrai, Dina Shoman and Omar Al Sharif

Based: Dubai

Sector: FinTech

Size: four team members

Stage: Intially bootstrapped but recently closed its first pre-seed round of $800,000

Investors: Wamda, VentureSouq, Beyond Capital and regional angel investors

Profile of Hala Insurance

Date Started: September 2018

Founders: Walid and Karim Dib

Based: Abu Dhabi

Employees: Nine

Amount raised: $1.2 million

Funders: Oman Technology Fund, AB Accelerator, 500 Startups, private backers

 

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