People in the UAE looking to escape the summer heat would be well advised to steer clear of southern Europe right now, as the region bakes in extreme temperatures.
The area has entered its second week of searing heat, with some cities recording temperatures higher than those in the Emirates.
It comes as the United States and north-western China also fry in abnormally high temperatures for this time of year.
In China, the national record has been broken, with reports citing the Meteorological Administration revealing that the temperature rose to 52.2°C in the province of Xinjiang on Sunday.
Similarly, in Death Valley National Park in California, temperatures soared well above 50°C and have come close to breaking the record for the area.
Temperature records could fall this week in Europe, as forecasters predict the heatwave will cause the mercury in some areas to soar well above 40°C, potentially putting the lives of more vulnerable residents at risk.
Spain
Among the European locations set to be hotter than Dubai for at least part of this week is Cordoba in southern Spain, where the UK’s Met Office forecast a high of 44°C on Monday. Authorities have issued a red alert in southern Spain because of the hot weather.
On Tuesday the heat is set to move north and east, with the Spanish city of Zaragoza set to experience a high of 44°C, which is 2°C hotter than the maximum forecast for Dubai that day.
Italy
The Italian island of Sardinia, which lies to the west of mainland Italy, is set to be almost as hot, with a high of 41°C forecast for Tuesday.
The European Space Agency has warned temperatures on Sardinia, and on the Italian island of Sicily, which sits off the southern tip of the mainland, could hit 48°C, up to 14°C warmer than Fujairah this week.
Greece
Greece, too, has been hit by uncomfortably high temperatures, so much so that authorities temporarily closed the Acropolis in Athens to tourists.
The extreme temperatures are the result of a high-pressure system over the Mediterranean that is drawing hot air from North Africa.
A heat dome effect, described by the US National Oceanic and Atmospheric Administration as something that happens when the atmosphere "traps hot ocean air like a lid or cap", has meant the hot weather has persisted. This has also been the case in the parts of the US.
Global warming
Climate change, which has caused numerous temperature records to be smashed in recent years, is another reason why the mercury is rising so high.
"We know that the Earth is warming, and last month was the warmest June on record globally as the average temperature rises, and so [does] the frequency and intensity of extreme heat periods," said Bob Ward, from the Grantham Research Institute on Climate Change and the Environment in the UK.
"What we’re seeing in the US and southern Europe is exactly what we have expected from climate change."
Europe’s hottest temperature was recorded in Sicily in August 2021, when the mercury rose to 48.8°C.
Mr Ward said heat domes appeared to be becoming more common.
"The heat domes are high-pressure systems that essentially stay very stable over an area for several days and you get these extended periods of high temperatures and that’s what we’ve been seeing in the southern US and over the Mediterranean," he said.
"These stable high-pressure systems are looking to be becoming more frequent but it’s not clear whether that’s due to climate change.
"The occurrence of the heat domes is mainly an issue that affects the length [of the heatwave], whereas the intensity is undoubtedly due to climate change."
As well as extreme heat, southern Europe has been hit by wildfires, with thousands of homes evacuated on the Spanish island of La Palma, one of the Canary Islands, off north-west Africa.
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UAE currency: the story behind the money in your pockets
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
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.”
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
