Ensuring that the UAE always has a secure supply of drinking water is a top strategic priority. Courtesy of Adach
Ensuring that the UAE always has a secure supply of drinking water is a top strategic priority. Courtesy of Adach

Ensuring the security of water, 'a strategic commodity on par with oil'



The creation of a strategic reserve of 26 million cubic metres of fresh water in the Empty Quarter is part of a major drive to ensure that the UAE always has enough to meet its needs.

Of all the grand schemes intended to secure Abu Dhabi's future, the one that is just coming to fruition now is also the least likely to be noticed.

It doesn't promise a spectacular perforated roof like the Louvre Abu Dhabi, or the futuristic profile of the Louvre's Saadiyat stablemate, the Guggenheim. Instead the only outward sign of this $500 million (Dh1.83bn) project is a network of more than 300 pipes emerging from the desert in the Empty Quarter.

And, instead of the familiar prospect of pipes being used to pump a valuable commodity out of the ground, here something potentially even more valuable has been put into the ground: 26 million cubic metres of desalinated water.

While refilling an ancient aquifer to create a strategic 90-day reserve of drinkable water might not be a headline grabber, it reflects the assessment that the UAE's heavy reliance on desalinated water has also created a national security issue.

By this summer, the aquifer will be full once more. It ends a scenario where if something had happened to Abu Dhabi's desalination plants - through either natural or malicious causes - the emirate would have run out of water within days.

The scheme reflects just one facet of the difficult balancing act played by the UAE on water issues. Decades of desalination has slightly exacerbated the natural process by which the Arabian Gulf off the UAE's west coast has become up to one and a half times as saline as average seawater.

The UAE also faces tough choices about whether the food security provided by the agriculture industry outweighs the cost to the environment, since the sector is the overwhelming cause of the increasing degradation of the nation's natural groundwater - both through increased salinity caused by overuse and through contaminants leaching into the water table - but contributes little to GDP or to the employment of Emiratis.

An equally difficult decision is how much to charge for water. The failure to reflect the true cost, either financially or environmentally, helps explain why water consumption in the UAE - and Abu Dhabi in particular - is among the highest in the world.

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"Water is a strategic commodity on a par with oil - maybe even more important," according to Mohammed Tayie, a hydropolitical expert from the University of Cairo who spoke at a water and food security conference in Abu Dhabi earlier this year.

It was a theme repeated by most of the experts at the event: a secure supply of water is essential to the smooth functioning of all GCC countries.

It's a lesson also appreciated far beyond the shores of the Arabian Gulf. In 2007, the United States decided to assess whether it faced national security issues through threats to its allies' infrastructure.

There was a special focus on the Middle East and particularly on Saudi Arabia.

The US embassy in Riyadh described the vulnerability of the eastern Saudi oil production facilities as "an Achilles heel for US strategic interests in the Kingdom ... not to mention US economic security in general" because even partial disruption would have "a devastating impact on the US national economy".

But after the Abqaiq oil and gas separation plant ("the world's most important petroleum facility"), the Saudi installation deemed the next most important to US interests was the desalination plant at Jubail.

"The Jubail desalinisation plant provides Riyadh with over 90 per cent of its drinking water," the embassy reported. "Riyadh would have to evacuate within a week if the plant, its pipelines, or associated power infrastructure were seriously damaged or destroyed."

The US diplomats' assessment of the risk to the Saudi desalination plant cite potential attacks by either Iran or Al Qaeda.

The threats are far from hypothetical. An Al Qaeda group unsuccessfully attacked Abqaiq in 2006, and during the invasion of Kuwait, Iraqi forces unleashed an oil slick with the intention of closing down the Jubail desalination plant. The oil slick was prevented from reaching the intakes by US army engineers.

The US embassy in Abu Dhabi conducted a similar study, which cited the fact that Abu Dhabi sourced 40 per cent of its water - and effectively all its drinking water - via desalination, at a cost at the time of about $1 per cubic metre. The balance, sourced by treating wastewater or drawing from aquifers, is mostly used for landscaping and agricultural use.

The UAE has also faced serious impacts on its desalination capacity, including four oil spills between 1994 and 2001. The red tide algal bloom on the east coast in 2007 and 2008 also affected water production.

The Water and Food Security in the Arabian Gulf conference, hosted by the Emirates Centre for Strategic Studies and Research, was told the potential risks to the UAE's desalination plants are complex.

Hussein Amery, a Middle East water management expert at the Colorado School of Mines, said there was a lack of feasible options for the southern Arabian Gulf nations.

"You don't need a highly paid consultant to tell you that desalination is the destiny for the GCC countries," he said.

The only other alternative was to import water from nearby countries, such as Turkey and Pakistan, but the option was rejected in part because it created a reliance on foreign governments. He said Kuwait and Qatar had also looked at importing water from Iran but dropped the idea.

"Water imports are somewhat risky. Desalination is significantly safer [because] it maximises a state's autonomy. It's an issue, trying to fight critical dependency on other countries. That's what the Gulf states are doing. By and large, they have been moving in the last two to three decades towards greater reliance on desalination.

"It comes with its own risks. It's definitely an issue but what options do you have?"

Tayie, the hydropolitical expert, said national security meant taking a wider view of the threats.

Among the risks of conflict with Iran over its nuclear development programme is that one of its facilities is located near the Arabian Gulf and has the potential to impact on the UAE's desalination capacity, Tayie said.

"We look at Iran and the plant sited on the other side of the Gulf. We're talking about the potential attacks, in certain pessimistic scenarios how much it will lead to contamination of water because of nuclear particles. This raises the bar of concern." Professor Seetharam Kallidaikurichi, director of National University of Singapore's Global Asia Institute, described the UAE as being in a unique position.

"Unlike other countries which don't have the finances to solve the problems, here money isn't a problem," he said. "They have a physical scarcity which they can solve by an expensive solution. Looking at the bigger picture, food and water security are important."

He said Singapore, which shared the UAE's traits of being small and prosperous, had faced similar issues. It had contracts to import water from neighbouring Malaysia but had moved to become entirely self-generating, through a mix of desalination and a drive to recycle waste water.

"There's a huge opportunity to show leadership and to solve the water and food problem," he said.

Waleed Al Zubari, professor of water resource management at Bahrain's Arabian Gulf University, said water security extended beyond the boundaries of the GCC nations because disputes in the Nile, Jordan and Euphrates catchments - including the possible failure of states - will affect the region.

"Any imbalance in the Arab world will affect us. We should take this issue into account," he said. "The management of water resources in the GCC in the last three decades has been one of when there is increased demand, a new [de]salination plant is built."

Climate change is likely to exacerbate the issue, Dr Al Zubari said. "Maps show 15 models of what might happen in the world in the future and the 15 agree that the region will become more arid, with a reduction of rainfall by 20 per cent.

"We don't know [for certain] what will happen but all these models have ended up with the same result: drier with higher temperatures."

****

With no rivers of any kind in the southern Arabian Gulf states and with restricted inflow from the over-extracted Euphrates and the rivers of Iran, for every litre of fresh water that flows into the Arabian Gulf, seven are lost to evaporation.

That is the primary reason why the Arabian Gulf is naturally more saline than the Indian Ocean, but in the 60 years since the region's first desalination plant was built in Kuwait, salt levels have increased. Although the rise in salinity due to evaporation is still several orders of magnitude greater than that due to desalination, the latter exacerbates the natural process.

The UAE now has more than 25 plants and a new one was commissioned last month at Mirfa, nearly doubling the capacity of the town's existing plant to approximately 225,000 cubic metres of water per day.

In the open ocean, seawater is generally 35 parts per thousand (ppt) of salt but in the Arabian Gulf that figure is frequently 50 ppt near the desalination plants, which return a strong brine after extracting fresh water.

As well as brine, anti-scaling chemicals such as phosphonates or polycarboxylic and polymaleic acids (used to prevent buildup on the heat-transfer surfaces), are also ejected.

The salinity level is not the only impact, although the higher the salt level, the more effort is needed to produce drinkable water.

The proposed solutions to the UAE's water issues are broad-based, including decreasing the water demand by being more efficient with what is already used, encouraging users to change to less water-intensive lives and by treating and reusing more wastewater.

An equally important factor in making water use more sustainable, according to American University of Beirut environmental hydrologist Nadim Farajalla, is to ensure the cost of water is passed on to all users in the UAE.

"We have to structure tariffs to get the full cost of recovery. There is heavy subsidy of the water sector - 10 per cent of GDP goes to subsidising it," he said. "That's too much. It allows people to waste it. Tariffs are very low. Our children and our grandchildren will pay for this."

The actual cost of desalination has been dropping. A decade ago, a cubic metre of water would cost $3 (Dh11) but improved technology has brought the cost down to 50 cents per cubic metre. However not all the UAE plants were using the latest technology, Farajalla said. Al Zubari supported that view, saying the price of water remained too low.

"The current price isn't conducive to reducing consumption of water," he said.

Harvard University professor of environmental engineering Peter Rogers said charging the real cost for water would improve the way it was used.

"In this region, water has been hopelessly underpriced and has been for a long time," he said. "In Boston, we made a one-third saving by increasing the price over 10 years."

****

It would be difficult to imagine Arabia without envisaging pockets of date palms amid the dunes. But by far the biggest consumer of water in the UAE is agriculture.

Agriculture in the UAE contributes just three per cent of the nation's GDP but consumes more than half of the water supply, almost all of which is sourced from groundwater. It also is the source of about three per cent of the jobs, but almost all of those are low-skilled migrant labourers. But how do you balance that against intangibles like food security and the continuation of traditional ways of life?

In most places in the world, groundwater is a resource that is replenished naturally but the aridity of most of the Arabian peninsula means that doesn't happen here.

The United Nations defines water scarcity as 1,000 cubic metres per person per year but the UAE's natural water supply is around half that.

More importantly, most of the UAE's groundwater dates back to an era when the climate in the region was much wetter, so the contents of most of the aquifers are often described as "fossil water" or "paleo water", making it nearly as finite as the region's oil reserves.

There is some natural recharge, usually in the form of downpours every few years, but for every litre of water that goes back into the groundwater reserves, 25 litres is used in the UAE. The rest comes partly from desalination but also by extraction - and further degradation - of the groundwater.

One reaction has been for the UAE to increase the number of dams on its wadis, partly to prevent flash flooding in towns downstream but also to temporarily hold water so it can percolate into the ground and boost the aquifers rather than flowing out to sea.

Amery said the UAE had the opportunity to learn from the example of Saudi Arabia, which had tried to bolster its food security by giving farmers access to inexpensive water to grow crops that would normally be unsuited to the region's hydrography. The end result was the kingdom briefly became the world's sixth-biggest wheat exporter but at the cost of degrading its groundwater for a commodity that was cheap to buy internationally.

The grand scheme came at a colossal cost: Toby Craig Jones' 2010 book Desert Kingdom, states that nearly one fifth of Saudi's GDP was used to subsidise unsustainable agriculture for a quarter of a century before beginning to phase out the scheme. The lesson for the UAE, Amery says, would be to use its water supplies to grow high-value crops rather than wheat.

"Agriculture contributes about three per cent to the national GDP and employs about three per cent of the labour force so it contributes next to nothing to the economy and employs next to no one. Those who are employed tend to be immigrant labour," he said.

"The philosophical and sentimental question is: can you have a country with no agriculture?"

That conundrum is just part of the balancing act facing the UAE and other Arabian nations.

The mammoth projects to recharge the aquifer of the Empty Quarter and another at Shwaib, north of Al Ain, show the willingness to invest the nation's considerable financial resources to lessen the risks posed by relying on desalination.

Other challenges - such as whether to charge for water at a rate that encourages conservation when access to abundant water has long been seen as a permanent feature of life - show that some problems can't be solved with a simple budget allocation.

How the nation resolves those questions will be judged by the next generation, who will bear the ramifications of the stewardship decisions being made today.

John Henzell is a senior features writer for The National.

ROUTE TO TITLE

Round 1: Beat Leolia Jeanjean 6-1, 6-2
Round 2: Beat Naomi Osaka 7-6, 1-6, 7-5
Round 3: Beat Marie Bouzkova 6-4, 6-2
Round 4: Beat Anastasia Potapova 6-0, 6-0
Quarter-final: Beat Marketa Vondrousova 6-0, 6-2
Semi-final: Beat Coco Gauff 6-2, 6-4
Final: Beat Jasmine Paolini 6-2, 6-2

Sustainable Development Goals

1. End poverty in all its forms everywhere

2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture

3. Ensure healthy lives and promote well-being for all at all ages

4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

5. Achieve gender equality and empower all women and girls

6. Ensure availability and sustainable management of water and sanitation for all

7. Ensure access to affordable, reliable, sustainable and modern energy for all

8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

9. Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation

10. Reduce inequality within and among countries

11. Make cities and human settlements inclusive, safe, resilient and sustainable

12. Ensure sustainable consumption and production patterns

13. Take urgent action to combat climate change and its effects

14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development

15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

17. Strengthen the means of implementation and revitalise the global partnership for sustainable development

Fifa Club World Cup:

When: December 6-16
Where: Games to take place at Zayed Sports City in Abu Dhabi and Hazza bin Zayed Stadium in Al Ain
Defending champions: Real Madrid

The Roundup

Director: Lee Sang-yong
Stars: Ma Dong-seok, Sukku Son, Choi Gwi-hwa
Rating: 4/5

COMPANY PROFILE

Company name: Revibe
Started: 2022
Founders: Hamza Iraqui and Abdessamad Ben Zakour
Based: UAE
Industry: Refurbished electronics
Funds raised so far: $10m
Investors: Flat6Labs, Resonance and various others

Kill

Director: Nikhil Nagesh Bhat

Starring: Lakshya, Tanya Maniktala, Ashish Vidyarthi, Harsh Chhaya, Raghav Juyal

Rating: 4.5/5

THE SPECS
Engine: 3.5-litre V6
Transmission: 9-speed automatc
Power: 279hp
Torque: 350Nm
Price: From Dh250,000
On sale: Now

Sarfira

Director: Sudha Kongara Prasad

Starring: Akshay Kumar, Radhika Madan, Paresh Rawal

Rating: 2/5

Where to donate in the UAE

The Emirates Charity Portal

You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.

The General Authority of Islamic Affairs & Endowments

The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.

Al Noor Special Needs Centre

You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.

Beit Al Khair Society

Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.

Dar Al Ber Society

Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.

Dubai Cares

Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.

Emirates Airline Foundation

Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.

Emirates Red Crescent

On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.

Gulf for Good

Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.

Noor Dubai Foundation

Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).

COMPANY PROFILE

Name: Xpanceo

Started: 2018

Founders: Roman Axelrod, Valentyn Volkov

Based: Dubai, UAE

Industry: Smart contact lenses, augmented/virtual reality

Funding: $40 million

Investor: Opportunity Venture (Asia)

Company profile

Company name: Fasset
Started: 2019
Founders: Mohammad Raafi Hossain, Daniel Ahmed
Based: Dubai
Sector: FinTech
Initial investment: $2.45 million
Current number of staff: 86
Investment stage: Pre-series B
Investors: Investcorp, Liberty City Ventures, Fatima Gobi Ventures, Primal Capital, Wealthwell Ventures, FHS Capital, VN2 Capital, local family offices

Company Profile

Company name: Cargoz
Date started: January 2022
Founders: Premlal Pullisserry and Lijo Antony
Based: Dubai
Number of staff: 30
Investment stage: Seed

Mia Man’s tips for fermentation

- Start with a simple recipe such as yogurt or sauerkraut

- Keep your hands and kitchen tools clean. Sanitize knives, cutting boards, tongs and storage jars with boiling water before you start.

- Mold is bad: the colour pink is a sign of mold. If yogurt turns pink as it ferments, you need to discard it and start again. For kraut, if you remove the top leaves and see any sign of mold, you should discard the batch.

- Always use clean, closed, airtight lids and containers such as mason jars when fermenting yogurt and kraut. Keep the lid closed to prevent insects and contaminants from getting in.

 

Top 10 most competitive economies

1. Singapore
2. Switzerland
3. Denmark
4. Ireland
5. Hong Kong
6. Sweden
7. UAE
8. Taiwan
9. Netherlands
10. Norway

Heather, the Totality
Matthew Weiner,
Canongate 

The specs

Engine: 1.6-litre 4-cyl turbo and dual electric motors

Power: 300hp at 6,000rpm

Torque: 520Nm at 1,500-3,000rpm

Transmission: 8-speed auto

Fuel consumption: 8.0L/100km

Price: from Dh199,900

On sale: now

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.”

Mercedes V250 Avantgarde specs

Engine: 2.0-litre in-line four-cylinder turbo

Gearbox: 7-speed automatic

Power: 211hp at 5,500rpm

Torque: 350Nm

Fuel economy, combined: 6.0 l/100 km

Price: Dh235,000

Confirmed bouts (more to be added)

Cory Sandhagen v Umar Nurmagomedov
Nick Diaz v Vicente Luque
Michael Chiesa v Tony Ferguson
Deiveson Figueiredo v Marlon Vera
Mackenzie Dern v Loopy Godinez

Tickets for the August 3 Fight Night, held in partnership with the Department of Culture and Tourism Abu Dhabi, went on sale earlier this month, through www.etihadarena.ae and www.ticketmaster.ae.

Champions League Last 16

Red Bull Salzburg+(AUT) v Bayern Munich+(GER)

Sporting Lisbon+(POR) v Manchester City+(ENG)

Benfica+(POR) v Ajax+(NED)

Chelsea+(ENG) v Lille+(FRA)

Atletico Madrid+(ESP) v Manchester United+(ENG)

Villarreal+(ESP) v Juventus+(ITA)

Inter Milan+(ITA) v Liverpool+(ENG)

Paris Saint-Germain v Real Madrid+(ESP)

HOW TO WATCH

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Brief scoreline

Switzerland 0

England 0

Result: England win 6-5 on penalties

Man of the Match: Trent Alexander-Arnold (England)