Cloud seeding effort adds extra pilot and new hangar


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The UAE's cloud seeding programme is expanding, with plans to hire a fourth pilot and build a new hangar for its airplanes at Al Ain International Airport. Work on the facility could begin as early as August, said a representative for the National Centre for Meteorology and Seismology, which is running the programme. Prompted by a shortage of natural water resources, the Government began funding cloud seeding research in 1999.

The country's cloud seeding programme has two planes, twin-propeller King Air C90 aircraft, at its disposal. Although they have been kept outdoors, they carry sensitive equipment and need to be protected from the sun. The programme has three pilots and runs flights mostly in the eastern part of the country, where conditions are the most favourable. The process involves sending planes up to study the chemical composition of the local skies and disperse chemicals into certain clouds in an attempt to produce rain. The latest experiment was carried out Saturday, 50km north of Al Ain, said a scientist at the centre.

"The plane took off at 4pm," he said. "There was 0.6 millimetres of rain in Um Ghafah and moderate rain close to Jebel Hafeet." The planes release a mixture containing various salts - potassium chloride, sodium chloride, and a small amount of magnesium - into clouds at an altitude of 2,438 metres. As the salts are released they attract moisture in the cloud. The droplets swell and eventually become so heavy that they fall in the form of rain.

To produce rain, the scientists need what are known as convective clouds, which are produced from warm air pockets rising from the surface and are rarely found in the winter months. Such movement allows chemicals released at the base of the clouds to disperse upward. In the summer, most air coming from Oman forms into suitable clouds over the Hajar Mountains. Between July and September, such clouds form about four days a week, the scientist said. As the cloud formations are small, with a radius of between five and 15 kilometres, the rainfall is localised. When the water falls over the rocky mountains, it quickly seeps underground.

"It is done mainly to recharge the underground aquifers," the representative said. About 40 countries carry out such experiments. In November last year, Chinese scientists were embarrassed after an experiment designed to alleviate a drought over Beijing produced snow instead. While proponents say cloud seeding could be a solution for arid countries such as the UAE, not everyone is convinced. The technology has yet to deliver results on a large scale, and there is also potential for pollution, said the scientist.

"Sodium chloride is not a simple compound," he said. "It is salt. This country is suffering from high salinity of the soil and groundwater." @Email:vtodorova@thenational.ae

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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.”