The Middle East is likely to experience less rainfall but an increase in the number of extreme downpours because of climate change, experts have said.
Flooding is likely to increase, said Karim Elgendy, an associate fellow in the climate and environment programme at Chatham House in London, as part of an Intergovernmental Panel on Climate Change (IPCC) briefing.
While climate change will, on average, increase rainfall globally, Mr Elgendy said the Middle East would be an exception.
“We’re going to get longer droughts and when it does rain, it’s going to rain in a flooding manner,” he said.
“Then you have sea-level rises,” he added. “In the Nile Delta, we’re going to expect a dramatic impact, especially in the Nile, which is below sea level.”
There will be “secondary impacts” on agriculture, tourism and development, with “tertiary impacts” on social structures, migration and resource demand, although Mr Elgendy said forecasting these was difficult.
Middle East second-most affected region by rising temperatures
Mr Elgendy was speaking at a Mena region briefing before Monday's release of the Synthesis Report of the IPCC's Sixth Assessment Report, which summarises the current situation regarding climate change.
Released following final discussions between experts in Switzerland, the report indicates that the world is falling far short of its climate change targets if global temperature rises are not to exceed 1.5°C above pre-industrial levels.
This has happened ahead of Cop28, the IPCC climate-change gathering to be held in the UAE later this year — the second successive Cop in the Mena region, with Cop27 having taken place in Sharm El Sheikh in Egypt last year.
Mr Elgendy indicated that this focus on the region was appropriate, as the Eastern Mediterranean and Middle East would experience the largest increases in temperature as a result of climate change of any inhabited region, with only the Arctic, which despite its vast size is inhabited by only 4 million people, facing faster rises.
Cop28 will involve three key elements, according to Mr Elgendy, including a global stocktake of progress since the Paris Agreement on climate change drafted in 2015.
Also expected, he said, was a global agreement on adaptation, or how countries will respond to climate change, and the finalisation of a deal on loss and damage, in which poorer countries severely affected by climate change will be given financial support to cope with its consequences.
“All these things mean Cop28 is where most pending issues will get resolved,” he said. “It means we have fewer things to negotiate.”
'A Cop for action'
Mr Elgendy, who founded Carboun, an initiative that promotes sustainability in Middle Eastern cities, said Cop28 could mark a transition in the nature of climate conferences if the focus is more on assessing and promoting action to combat climate change, instead of forging agreements on what needs to be done.
“Cop 28 could be a Cop for action,” he said. “It could start a transition in what the Cop is [about] … it’s something that’s largely about encouraging climate action.”
However, he said the world is set to overshoot the target of limiting global temperature rises to 1.5°C, so greater ambition is needed.
“If we hit all the voluntary targets by 2050, maybe we’ll get to 2°C but we’re certainly off target for 1.5°C,” he said.
“The process … isn’t going fast enough and time is running out. Emissions grew by 1 per cent last year and it was nothing to do with Covid recovery.”
He said the UAE’s climate policy appeared “unorthodox” but that it had largely been followed by the rest of the GCC.
The country, he said, is keen to diversify its economy away from oil and gas, funded by revenue from the petroleum sector.
Investment in renewable and nuclear energy, Mr Elgendy said, had allowed the country to reduce its own petroleum consumption.
This, in turn, means that exports can be maximised — justified not only in the UAE but in the GCC as a whole — on the basis that oil and gas extraction is less carbon-intensive in the Gulf than in many other parts of the world, he said.
“The UAE and Saudi position is … we should be the last producers standing, because the oil … requires less energy to get it out of the ground,” he said.
Another speaker, Camille Ammoun, an associate fellow at the American University of Beirut, said GCC countries had an economic interest to engage in efforts to mitigate climate change, as well as the financial means to drive green projects. They also have an interest in doing so because of the environmental effects of climate change.
“The Gulf countries have the interest and means to go further,” he said, although these nations are “still very reliant on fossil-fuel extraction.”
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.”
Fixtures
Friday Leganes v Alaves, 10.15pm; Valencia v Las Palmas, 12.15am
Saturday Celta Vigo v Real Sociedad, 8.15pm; Girona v Atletico Madrid, 10.15pm; Sevilla v Espanyol, 12.15am
Sunday Athletic Bilbao v Getafe, 8.15am; Barcelona v Real Betis, 10.15pm; Deportivo v Real Madrid, 12.15am
Monday Levante v Villarreal, 10.15pm; Malaga v Eibar, midnight
Charlotte Gainsbourg
Rest
(Because Music)
JOKE'S%20ON%20YOU
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Company%20profile
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20WallyGPT%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2014%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3ESaeid%20and%20Sami%20Hejazi%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%3Cbr%3E%3Cstrong%3EInvestment%20raised%3A%20%3C%2Fstrong%3E%247.1%20million%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%3C%2Fstrong%3E%2020%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3EPre-seed%20round%3C%2Fp%3E%0A
Stree
Producer: Maddock Films, Jio Movies
Director: Amar Kaushik
Cast: Rajkummar Rao, Shraddha Kapoor, Pankaj Tripathi, Aparshakti Khurana, Abhishek Banerjee
Rating: 3.5