Abu Dhabi to assist wildlife conservation groups by helping them pay salaries and rents


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The Mohamed bin Zayed Species Conservation Fund is offering emergency grants to help conservation groups struggling through the Covid-19 pandemic.

The fund will provide up to Dh91,800 ($25,000) to help cover salaries, rent and operating costs for severely affected organisations working in species conservation. It will prioritise small, locally based grassroots groups.

The announcement follows an April survey of more than 300 grantees in 85 countries.

It's clear that conservation organisations cannot protect threatened species if they cannot meet basic needs like staff salaries and rent.

More than half of respondents said they were already experiencing financial difficulties, with one in five reporting their organisation planned to eliminate jobs.

Financial strain was partially due to the closure of parks and zoos, a drop in ecotourism and lower student enrolment in courses and fieldwork.

"It’s clear that conservation organisations cannot protect threatened species if they cannot meet basic needs like staff salaries and rent,” said Razan Al Mubarak, the fund’s managing director.

“The fund has always been dedicated to keeping conservationists in the field. Allowing conservationists to lose their jobs or their organisations to collapse would be detrimental to fulfilling our long-term mission.”

Since 2009, the Abu Dhabi based fund has provided more than Dh73.4 million ($20m) in small, targeted grants for thousands of on-the-ground conservation projects in more than 180 countries.

Projects have included the discovery of a long-horned bee (Eucera longicornis) colony in the UK, a rush to save the world's rarest duck from extinction in Madagascar and the search for a missing species, the Itatiaia highland frog (Holoaden bradei), in the mountains of south-eastern Brazil.

“Our hope is that other foundations and philanthropists join the MBZ Fund in easing restrictions so conservation organisations can make it through this challenging time and weather the economic impact of the pandemic,” said Ms Al Mubarak.

Covid-19 relief grants will be distributed in two rounds.

The deadline for the first-round is October 31 and successful applicants will receive funding at the end of the December.

The deadline for the second round is February 28. Successful applications will receive funding before May 2021.

More information on grant application guidelines can be found here.

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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.”