Wildlife conservation programmes are being severely disrupted by the effects of the coronavirus pandemic, according to a new global survey.
The study, which was organised by the Mohamed bin Zayed Species Conservation Fund, polled more than 300 experts working in the field.
The findings show the majority of conservationists are affected by the outbreak, with several programmes put on hold.
The study showed 83 per cent of conservationists conducting critical fieldwork across 85 countries were negatively affected by the outbreak.
Seventy per cent of experts said planned conservation activities were also either cancelled or postponed.
“With an estimated 10,000 species being lost to extinction per year, a rate that is 1,000 times faster than at any other time in history, conservation work in the field is the critical first line of defence against extinction, habitat destruction, deforestation, over-hunting, poaching and pollution,” said Razan Al Mubarak, founding managing director of the fund, which is based in Abu Dhabi.
“By confirming that efforts to prevent biodiversity loss have been significantly harmed during the pandemic, the survey makes clear that the conservation community must come together to urge for a ‘nature recovery plan’ where conservation initiatives are given the necessary financial stimulus to not just recover but thrive in the long term.”
Among the programmes on hold until at least the spring of 2021 are the release of critically endangered animals such as Madagascan big-headed turtles and Polynesian tree snails.
Field research on migratory birds such as vultures in Uttarakhand, India, and the Sulu bleeding-heart in the Philippines were also postponed, the study said.
About 30 per cent of the experts surveyed said they feared the pandemic would increase threats to species and habitats, including a greater reliance on poaching among communities affected by a drop in tourism.
Many conservationists were also concerned about the inability to monitor and prevent invasive species such as rats and cats from eating eggs or hatchlings.
“The travel and physical distancing restrictions in place mean that critical predator control work cannot be completed as per calendar activities planned months ago,” said Luis Ortiz-Catedral, who is working to protect the critically endangered pink iguana in the Galapagos Islands.
“It may resume in the coming months, but it is unlikely to have the same effect after a multi-month gap.”
In addition, the majority of conservationists said they feared for their financial futures and the economic effects the outbreak will have on the organisations they work for.
In the report, 68 per cent of respondents said their organisation was negatively affected by the pandemic and 57 per cent said the groups they worked for were facing financial difficulties.
Ms Al Mubarak said the results showed conservationists needed more help to carry out their work.
“Governments can provide more support to conservationists who are engaging with local communities in order to reduce economically and socially harmful destruction of nature and biodiversity,” she said.
“This would not necessarily be simply financial, but a societal undertaking that would provide long-term benefits for both humans and threatened species.”
The fund issues grants of up to $25,000 (Dh91,800) to support conservation initiatives around the world.
Since 2009, it has given more than $20 million in funding to at least 2,100 projects, supporting more than 1,300 different species and subspecies.
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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Founded: 2017
Based: UAE
Sector: Travel & tourism
Size: 36 employees
Funding: Privately funded
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Was a middle distance state athletics champion in school
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Favourite TV show: That 70s Show
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Name of first pet: Eddy, a Persian cat that showed up at our home
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Transmission: eight-speed automatic
Power: 582bhp
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Juventus v Napoli, Sunday, 10.45pm (UAE)
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Initial investment: Undisclosed
Investment stage: Series A
Investors: Core42
Current number of staff: 47
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