A new report has warned the livelihoods of more than half a billion people in the Middle East and North Africa are under threat from climate change.
It outlines how temperatures in the region are rising at twice the global average and could affect 575 million people, 70 per cent of whom are in low-income countries.
Published by the World Economic Forum (WEF) on Wednesday, the report said the region was at a “decisive moment” in the fight against climate change, with shocks such as irregular rainfall, water scarcity, desertification, reduced levels of groundwater and prolonged droughts potentially triggering a knock-on effect on everything from agriculture to how people live to increasing migration.
The report, Closing the climate action gap: accelerating decarbonisation and the energy transition in Mena, comes only weeks before Cop28 gets under way in Dubai.
Leaders will meet in the UAE from November 30 to December 12 to tackle the escalating climate emergency and assess where the world stands in meeting the goals of the Paris agreement. Under the 2015 deal, countries agreed to “pursue efforts” to limit the rise in global temperatures to 1.5°C on pre-industrial levels.
But the world remains off track and could instead be headed for around 2.5°C of warming, the UN has said. The report notes how warming is more pronounced in the Middle East and forecasts a 4°C rise. Scenarios can differ depending on various factors such as future emissions and policy changes.
Call for urgent action
“The urgency of the situation demands immediate and nuanced action, including reducing emissions, building resilience against climate change, including water scarcity, and mobilising a cohesive effort among governmental bodies, businesses and international organisations,” the report notes.
The study underlines how countries in Mena trail behind comparable regions in terms of sustainability goals. It states that while governments pledged in the past 24 months to bring 60 per cent of Mena’s emissions under the net-zero ambition, businesses overall have yet to follow suit and bridge the gap with comparable global markets.
The report, released on the sidelines of the WEF’s Global Future Councils event in Dubai, also offers much hope for the future, however, outlining how by scaling up solar and wind energy, the region could become a “global leader” in areas such as renewables and clean hydrogen.
‘’The Mena region has been one of the fastest growing over the past decade and there is a pathway for the region to position itself at the forefront of sustainability efforts while maintaining its upward economic trajectory,” said Borge Brende, president of the WEF.
“As global markets continue to shift and energy demands rise, the region requires bold and co-ordinated action from policymakers and businesses to lead a just energy transition and meet both climate and development-related goals,” he said.
The report was developed in collaboration with consulting firm Bain and Company, with contributions from more than 40 policymakers, climate actors, business leaders, banks and industry experts from the private and public sectors who form the forum’s “leaders for sustainable Mena”. It also notes the significant impact of climate change on the economy.
Estimates from organisations such as the World Bank and Swiss Re predict that climate change could slash gross domestic product in Mena by between 4 per cent and 21 per cent by 2050 due to a lack of climate action.
And it cautions the region is not a “monolith”, with “major differences” existing between the GCC and other parts of the region.
It advises that Gulf nations should focus on “technology-based solutions that reduce emissions in challenging sectors, optimise consumption, transition to renewables and implement carbon capture at scale”.
“Meanwhile, non-Gulf countries should prioritise affordable energy, particularly in low-income areas, by increasing renewable energy usage, phasing out regressive fossil-fuel subsidies and supporting carbon-credit projects.”
The report also suggests upskilling in green jobs will be crucial across Mena and greater collaboration on climate could strengthen “diversification, exports and employment” across the entire region.
Egypt replants mangroves to fight climate change - in pictures
India squad
Virat Kohli (captain), Rohit Sharma, Mayank Agarwal, K.L. Rahul, Shreyas Iyer, Manish Pandey, Rishabh Pant, Shivam Dube, Kedar Jadhav, Ravindra Jadeja, Yuzvendra Chahal, Kuldeep Yadav, Deepak Chahar, Mohammed Shami, Shardul Thakur.
Name: Brendalle Belaza
From: Crossing Rubber, Philippines
Arrived in the UAE: 2007
Favourite place in Abu Dhabi: NYUAD campus
Favourite photography style: Street photography
Favourite book: Harry Potter
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LA LIGA FIXTURES
Thursday (All UAE kick-off times)
Sevilla v Real Betis (midnight)
Friday
Granada v Real Betis (9.30pm)
Valencia v Levante (midnight)
Saturday
Espanyol v Alaves (4pm)
Celta Vigo v Villarreal (7pm)
Leganes v Real Valladolid (9.30pm)
Mallorca v Barcelona (midnight)
Sunday
Atletic Bilbao v Atletico Madrid (4pm)
Real Madrid v Eibar (9.30pm)
Real Sociedad v Osasuna (midnight)
UAE currency: the story behind the money in your pockets
In numbers
- Number of children under five will fall from 681 million in 2017 to 401m in 2100
- Over-80s will rise from 141m in 2017 to 866m in 2100
- Nigeria will become the world’s second most populous country with 791m by 2100, behind India
- China will fall dramatically from a peak of 2.4 billion in 2024 to 732 million by 2100
- an average of 2.1 children per woman is required to sustain population growth
MATCH INFO
Rugby World Cup (all times UAE)
Third-place play-off: New Zealand v Wales, Friday, 1pm
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In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
- Production engineer: Dh30,000 to Dh40,000
- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
- Senior reservoir engineer: Dh40,000 to Dh55,000
- Senior drilling engineer: Dh38,000 to Dh46,000
- Senior process engineer: Dh28,000 to Dh38,000
- Senior maintenance engineer: Dh22,000 to Dh34,000
- Field engineer: Dh6,500 to Dh7,500
- Field supervisor: Dh9,000 to Dh12,000
- Field operator: Dh5,000 to Dh7,000
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The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
Company Fact Box
Company name/date started: Abwaab Technologies / September 2019
Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO
Based: Amman, Jordan
Sector: Education Technology
Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed
Stage: early-stage startup
Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.
UAE currency: the story behind the money in your pockets
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
The biog
Name: Fareed Lafta
Age: 40
From: Baghdad, Iraq
Mission: Promote world peace
Favourite poet: Al Mutanabbi
Role models: His parents
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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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Profile of Bitex UAE
Date of launch: November 2018
Founder: Monark Modi
Based: Business Bay, Dubai
Sector: Financial services
Size: Eight employees
Investors: Self-funded to date with $1m of personal savings