Masdar’s study has raised some alarming questions about groundwater depletion that suggest irrigation and fresh water uses may well be at odds. Jeffrey E Biteng / The National
Masdar’s study has raised some alarming questions about groundwater depletion that suggest irrigation and fresh water uses may well be at odds. Jeffrey E Biteng / The National
Masdar’s study has raised some alarming questions about groundwater depletion that suggest irrigation and fresh water uses may well be at odds. Jeffrey E Biteng / The National
Masdar’s study has raised some alarming questions about groundwater depletion that suggest irrigation and fresh water uses may well be at odds. Jeffrey E Biteng / The National

Masdar Institute research cites depleting groundwater reserves


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ABU DHABI // Groundwater reserves in the UAE are depleting at a rate of half a centimetre a year because of overuse from inefficient irrigation methods, according to a study from the Masdar Institute released on Wednesday.

Despite a slight rise in rainfall the past 15 years, the rate of consumption is higher than replenishment of the aquifer.

Masdar Institute graduate student Maria del Rocio Gonzalez Sanchez created the UAE’s first “water budget” – the relationship between inputs and outputs of water – and discovered that the groundwater is pumped out for irrigation at a rate of about 860 billion litres a year.

She said this is significant, considering that the UAE relies on its groundwater reserves to provide more than 50 per cent of its fresh water.

“Basically we wanted to study all the components of the water digested in the UAE. We wanted to focus on the groundwater, how it’s being depleted, because there is no scientific study done in this country and that’s a big problem,” said Ms Sanchez, 33, who is studying for her master’s degree in water and environmental engineering.

She found that despite the increased rainfall, evapotranspiration – moisture that goes from roots to leaves in plants – has been taking water out of the ground at approximately the same rate that rainfall has been adding to it. Thus, there is no real net gain.

“In any case, it does not matter because the rainfall is not enough to replenish the aquifers,” she said. “There’s been some recharge compared to the withdrawal of water.”

Although the number of years before the situation becomes critical has not been calculated, Ms Sanchez said it would be something that the institute is looking to do.

The study affects irrigation water, as drinking water mostly comes from desalination plants, a matter Ms Sanchez said needs to be addressed.

“That’s the problem – agriculture is not sustainable in this country.”

Groundwater provides more than half of the country’s fresh water needs, but most of it goes towards the agricultural sector.

Desalination provides around 37 per cent of the UAE’s water demand, which is used mostly for industrial and domestic consumption.

The remaining portion, around 12 per cent, is reclaimed water, which is used for landscaping irrigation.

Ms Sanchez said a solution to the excessive use of groundwater is to use recycled water for agricultural irrigation. Recycled or reclaimed water is former wastewater that is used to replenish aquifers.

She added that irrigation methods could be amended to reduce the amount of overwatering. Some reports indicate that UAE farmers are using two-and-a-half times more water than needed to keep palm trees healthy.

“Long-term planning of water-related activities requires a good understanding of the various components of the water budget,” said Dr Taha Ouarda, professor of water and environmental engineering.

“It’s just like managing your finances – you need to know how much money you have in savings, how much your income is, and what your expenses are, so you can manage it all efficiently.”

Masdar’s research provides information needed for management of fresh water reserves.

“With this research, we can know the amount of rainfall the UAE is getting, the amount of groundwater we’re losing and desalinated water we’re producing, allowing the UAE to develop optimal water management plans,” he said.

nalwasmi@thenational.ae

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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Wins: 28
Wins by KO: 26
Losses: 4

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Forwards: Olmo (RB Leipzig), Oyarzabal (Real Sociedad), Morata (Juventus), Moreno (Villarreal), F Torres (Manchester City), Traore (Wolves), Sarabia (PSG)

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Platforms: PlayStation 5, Xbox Series X/S, PC

Rating: 4.5/5

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October 18 – November 2

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Friday, October 18

ICC Academy: 10am, Scotland v Singapore, 2.10pm, Netherlands v Kenya

Zayed Cricket Stadium: 2.10pm, Hong Kong v Ireland, 7.30pm, Oman v UAE

UAE squad

Ahmed Raza (captain), Rohan Mustafa, Ashfaq Ahmed, Rameez Shahzad, Darius D’Silva, Mohammed Usman, Mohammed Boota, Zawar Farid, Ghulam Shabber, Junaid Siddique, Sultan Ahmed, Imran Haider, Waheed Ahmed, Chirag Suri, Zahoor Khan

Players out: Mohammed Naveed, Shaiman Anwar, Qadeer Ahmed

Players in: Junaid Siddique, Darius D’Silva, Waheed Ahmed

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