Conventional plastic shopping bags are on the way out.
Conventional plastic shopping bags are on the way out.
Conventional plastic shopping bags are on the way out.
Conventional plastic shopping bags are on the way out.

Logo is next step in banning non-degradable plastic


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By spring, all plastic bags that claim to be degradable must bear a logo showing that they meet government standards, a measure that takes the nation one step closer to a planned total ban on conventional bags by 2013.

The rule is part of a broader set of regulations developed last year by the Emirates Authority for Standardization and Metrology (Esma), which is now in the process of enforcing them.

"We will have the logo finalised within a month," said Mohamed Badri, the acting director general of Esma. Only companies that have been registered by Esma will be allowed to use the logo, which would be the only legitimate method of claiming bags were degradable, Mr Badri said.

Once the logo has been finalised and the stamping begins, this spring, an inspection process will ensure there are no impostors.

Plastic contributes to littering and pollution, and many of the bags end up in seas, oceans and other bodies of water, where they leach toxic chemicals into the environment. They also drift into open spaces, such as the desert, and can kill camels and other animals that ingest them. Much of the plastic we throw away also ends up in landfills, and it takes hundreds of years to break down.

To overcome the longevity issue, chemical companies have created additives that make plastic bags break down more rapidly. Known as oxo-degradable plastic, the material decomposes in the presence of light and oxygen.

Esma has approved the additives supplied by three international companies - D2W, Ener Plastics and Willow Ridge Plastics - all of which have a local presence. The agency is now seeking to license plastic bag manufacturers. Out of more than 100 on the market, only 13 had applied for certificates, said Mr Badri.

Bag manufacturers will have to declare the chemical composition of the additives they use, which are usually organic compounds of metals such as iron, nickel, cobalt and manganese. In addition to proving thay they are using approved additives, the premises of each manufacturer will have to be audited; Esma officials will assess the quality of the plastic material used and the production lines. Conventional plastic bags will be banned by January 1, 2013, a deadline set by the Ministry of Environment and Water.

"Practically, manufacturers have until the end of 2012 to comply, but they cannot call their bags degradable unless approved by us," Mr Badri said.

The plastics industry has presented oxo-degradable plastics as a solution to the problems associated with plastic bags, saying that even when discarded improperly the bags will degrade to carbon dioxide and water in the presence of sunlight. However, critics question the claim.

Last year, a study commissioned by the UK's Department for Environment, Food and Rural Affairs concluded that oxo-degradable bags were no better for the environment than conventional plastic bags. Carried out by a team of scientists from Loughborough University, the study found that additives did cause the plastic to break down into small pieces. Whether they further degraded, and how quickly, was up for debate.

Winston Pryce, the general manager of the Sharjah-based D2W distributor Eco-Polymers, said he disagreed with the findings of the UK study.

"We have got reports from independent labs that prove biodegradation," he said.

He explained that the basic material used to make conventional plastic was combined with different stabilisers and that anti-oxidants were added to slow the process so the plastic bags lasted long enough to be used by consumers.

"The basic material is naturally degradable," he said. "Our product is only acting as a catalyst."

Habiba al Marashi, the founder and chairperson of the Emirates Environmental Group, said there was not "one solution that fits all" when it came to plastic. Reusable bags, degradable plastic and efforts to recycle will all prove useful in reducing pollution.

"There will be a basket of solutions," she said. "As long as it does not end up in landfill."

Regarding the debate on oxo-degradable bags, Mrs al Marashi said: "Science is evolving all the time and what is best today may not be so in the next few years. It is a good first step."

The Vile

Starring: Bdoor Mohammad, Jasem Alkharraz, Iman Tarik, Sarah Taibah

Director: Majid Al Ansari

Rating: 4/5

UAE squad to face Ireland

Ahmed Raza (captain), Chirag Suri (vice-captain), Rohan Mustafa, Mohammed Usman, Mohammed Boota, Zahoor Khan, Junaid Siddique, Waheed Ahmad, Zawar Farid, CP Rizwaan, Aryan Lakra, Karthik Meiyappan, Alishan Sharafu, Basil Hameed, Kashif Daud, Adithya Shetty, Vriitya Aravind

In numbers: PKK’s money network in Europe

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Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

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Company Profile

Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million

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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.”

UAE currency: the story behind the money in your pockets
Red flags
  • Promises of high, fixed or 'guaranteed' returns.
  • Unregulated structured products or complex investments often used to bypass traditional safeguards.
  • Lack of clear information, vague language, no access to audited financials.
  • Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
  • Hard-selling tactics - creating urgency, offering 'exclusive' deals.

Courtesy: Carol Glynn, founder of Conscious Finance Coaching