ZHENGZHOU, CHINA // On the streets of Henan's capital, Zhengzhou, massive tanker lorries spray water on the road, the bushes are sprightly and green and sprinklers tick in the public gardens. A few kilometres out of town, near the banks of the Yellow River, central China's largest vegetable market is conducting a roaring trade in produce sourced mainly from the south.
There is little here to indicate that the province - long considered China's breadbasket - is suffering its worst drought in half a century. But about 150 kilometres away, in the dusty foothills south of the industrial town of Gongyi, farmers Xi Guo Jun and He Hong Pu are facing the total loss of their winter wheat harvest. Their entire rapeseed crop, which sells for roughly eight yuan (Dh4.3) per kilogram, has already died. "If it doesn't rain soon, we'll also lose the wheat harvest and have nothing to eat," Mr He said. According to the meteorological bureau, the province received an average rainfall of 10.5 millimetres between Nov 2008 and Jan 2009, almost 80 per cent less than in the same period of previous years.
Yesterday, however, the government lowered its drought warnings in two areas after snow and rainfall in the north. There was no respite, however, in Henan, where the terraced slopes above Yaoling village are brown and withered. The land was barren enough to start with, yielding 200kg of wheat per mu (1/15 of a hectare) compared with as much as 600kg on the floodplain below. The 3,000 villagers have access to a well, but there is barely enough water for drinking, let alone to irrigate their fields.
Across the country, more than 4.6 million people and 2.5 million head of livestock are affected by water shortages, according to the Office of State Flood Control and Drought Relief Headquarters. An estimated 4.2m mu of wheat has shrivelled and died, and a further 29m remains "seriously threatened". With no crops to harvest and sell, some farmers have taken part-time work in the nearby coal mine, earning less than 1,500 yuan per month for toiling eight hours a day 200 metres underground. "The mine is the only place to go for work, and that can barely cover our living costs," said Mr Xi. "Some do it but some say they'd rather starve to death than work with explosives underground."
The hills around Gongyi are peppered with mines, quarries and industrial works. Aluminium processing factories, copper mines, brick burning plants and chemical works appear around every corner, all of which compete with the surrounding farms for an increasingly scarce water supply. "The factories are using groundwater too intensively," said Wen Bo, a leading Chinese environmentalist with Pacific Environment, a San Francisco-based non-governmental agency.
The Chinese government has said it has spent around US$50 million (Dh183.6m) and despatched 30m people to help with drought relief, but Yaoling is still waiting. "We've asked the government to help us," said Mr Xi, "but our village has been given the accolade of being 'rich and healthy', so they have refused to offer us support." The villagers say all they need is a pump to bring water up from the plain below to irrigate their fields.
But even if they receive this, Mr Wen believes redressing the water problems will take a fundamental change in attitude. "Unfortunately, the Chinese government still think improved engineering is the solution, but it's not. It's not a long-term solution." According to Mr Wen, the entire northern China basin has been sinking for the past 30 years, as groundwater is continuously being sucked out by both industry and agricultural enterprises.
"It's cheaper to dig below your own factory, as you don't have to pay for piping or to clean the water. Much of the river water is too polluted to use." In the village of Nanzhou, one hour's drive west of Zhengzhou, farmers have benefited from wells dug by the government as part of a 15-year-old investment project. Each well provides irrigation water for around 300 mu of crops and its flow is tapped almost free of charge.
"Agricultural water use is heavily subsidised," said Xu Hong Guo, a village elder, "so we can continue to pump water from the well without too much worry." Barely 20 years ago, the villagers lived in basic dwellings hollowed out from the sides of the cliff face. Now, most have brick-built homes as part of a government plan to raise standards of living. "Things have improved amazingly," said Mr Xu. "I remember when I was three years old, there was a drought in the village and some people died. This drought hasn't affected our daily lives all that much."
Some villagers, however, are still waiting for their new homes. Yu Wen Xian and her husband are one such couple who, because they live on higher ground, are too far from the wells to have access to water. "We rely on the heavens for our water," she said. "Our rapeseed has been wiped out this year, and we only have enough water for drinking purposes." But Mrs Yu said her family has wheat in storage and confidence the government will help them out. "We won't die of starvation like in the past."
Many of Henan's farmers are similarly upbeat because plentiful harvests in previous years have left them with a surplus and able to take advantage of an increase in the price of wheat. Mr Wen said this was shortsighted as China's wheat-growing areas were likely to face further water shortages in the future. "I think the drought problem is partly from the impact of climate change, but the other part of it is human errors," he said. "There is a problem of a loss of vegetation in northern China's basin. The grass, trees and forests have largely been cleared, and this has meant that the precipitation just runs off the hills and is lost, rather than seeping gradually down to the basin below."
According to a study conducted before the most recent drought by the ministry of water resources, the Chinese Academy of Sciences and the Chinese Academy of Engineering, 11.5m hectares of land in China were suffering from heavy soil and water loss and 82 per cent of the most affected areas are along the Yellow and Yangtze River valleys. Damming and irrigation projects have also contributed to a lack of water in the downstream area and led to an inequitable distribution of water between provinces.
"The upstream provinces used to let the water go free of charge but they are starting to see that water is a precious resource in China. So places like Shanxi are offering extremely cheap water prices to attract investment," Mr Wen said. "We have to price water more sensibly to ensure industry and households realise the importance of conserving it." Chen Lei, China's water resources minister, has announced plans to reduce water consumption per capita of GDP by 60 per cent within the next 10 years. "We must take strict measures to preserve water resources in the face of the severe lack of water worsened by factors such as overuse, pollution and drought," he said.
* The National
The specs
Engine: 3-litre twin-turbo V6
Power: 400hp
Torque: 475Nm
Transmission: 9-speed automatic
Price: From Dh215,900
On sale: Now
Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
Concrete and Gold
Foo Fighters
RCA records
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
The biog
DOB: March 13, 1987
Place of birth: Jeddah, Saudi Arabia but lived in Virginia in the US and raised in Lebanon
School: ACS in Lebanon
University: BSA in Graphic Design at the American University of Beirut
MSA in Design Entrepreneurship at the School of Visual Arts in New York City
Nationality: Lebanese
Status: Single
Favourite thing to do: I really enjoy cycling, I was a participant in Cycling for Gaza for the second time this year
A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
Sheer grandeur
The Owo building is 14 storeys high, seven of which are below ground, with the 30,000 square feet of amenities located subterranean, including a 16-seat private cinema, seven lounges, a gym, games room, treatment suites and bicycle storage.
A clear distinction between the residences and the Raffles hotel with the amenities operated separately.
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.”
THREE
%3Cp%3EDirector%3A%20Nayla%20Al%20Khaja%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Jefferson%20Hall%2C%20Faten%20Ahmed%2C%20Noura%20Alabed%2C%20Saud%20Alzarooni%3C%2Fp%3E%0A%3Cp%3ERating%3A%203.5%2F5%3C%2Fp%3E%0A
Mica
Director: Ismael Ferroukhi
Stars: Zakaria Inan, Sabrina Ouazani
3 stars
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Masters%20of%20the%20Air
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Gender pay parity on track in the UAE
The UAE has a good record on gender pay parity, according to Mercer's Total Remuneration Study.
"In some of the lower levels of jobs women tend to be paid more than men, primarily because men are employed in blue collar jobs and women tend to be employed in white collar jobs which pay better," said Ted Raffoul, career products leader, Mena at Mercer. "I am yet to see a company in the UAE – particularly when you are looking at a blue chip multinationals or some of the bigger local companies – that actively discriminates when it comes to gender on pay."
Mr Raffoul said most gender issues are actually due to the cultural class, as the population is dominated by Asian and Arab cultures where men are generally expected to work and earn whereas women are meant to start a family.
"For that reason, we see a different gender gap. There are less women in senior roles because women tend to focus less on this but that’s not due to any companies having a policy penalising women for any reasons – it’s a cultural thing," he said.
As a result, Mr Raffoul said many companies in the UAE are coming up with benefit package programmes to help working mothers and the career development of women in general.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh132,000 (Countryman)
The specs
Engine: 2.0-litre 4-cylinder turbo
Power: 240hp at 5,500rpm
Torque: 390Nm at 3,000rpm
Transmission: eight-speed auto
Price: from Dh122,745
On sale: now
Company%20profile
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EMaly%20Tech%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202023%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Mo%20Ibrahim%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%20International%20Financial%20Centre%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20FinTech%3Cbr%3E%3Cstrong%3EFunds%20raised%3A%3C%2Fstrong%3E%20%241.6%20million%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%3C%2Fstrong%3E%2015%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3EPre-seed%2C%20planning%20first%20seed%20round%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20GCC-based%20angel%20investors%3C%2Fp%3E%0A