DUBAI // Landfill sites are bulging with discarded plastic water bottles while recycling plants lie almost idle, a survey has found.
The Sharjah waste management company that carried out the study recovered 3,342 tonnes of plastic last year and says the full quantity discarded is probably six times that. Only a third of Sharjah residents recycle their plastic waste, their research showed.
"We can potentially capture all plastics, if they end up deposited in the right ways," said Reinhard Wilkes, acting vice president of operations at the company, Bee'ah.
UAE per-capita consumption of bottled water is among the highest in the world: 259.7 litres in 2007, according to the Beverage Marketing Corporation, a US consultancy. Bee'ah estimates each resident uses up to 450 plastic water bottles a year, of which only a small percentage is recycled.
Polyethylene terephthalate, or PET, is used to make the bottles. Last year Bee'ah recovered 1,649 tonnes of PET.
A factory in Fujairah, Horizon Technologies, is the only site in the country where PET is reprocessed. The end products include granules, which can be exported for processing into other goods, or plastic film and containers.
Rajnish Sinha, the plant's general manager, said amounts of PET arriving at the factory from Sharjah, Dubai and elsewhere were increasing but were still far from sufficient.
"These are not very large figures if you look at the annual volume of waste," he said.
The plant opened in 2008 but is still operating at no more than 30 per cent capacity.
"There has been some increase over the years, but we are still far from what we are expecting. There is a long way to go," said Mr Sinha.
Bee'ah recovers most of its plastic waste at a facility in Al Saj'ah, where mixed household waste is sorted with the help of mechanical equipment and by hand into plastics, metal, glass and other recycleable materials.
They are then further divided and sold to companies that process them into useful materials. Mr Wilkes said plastic comprises the largest share of the waste.
"At present, plastic makes up almost 40 per cent of the total amount of materials recovered for recycling, of which the bulk is PET," he said.
Plastic is created by combining petroleum or natural gas with oxygen or chlorine. The process uses significant amounts of oil.
Recycling used plastic products requires up to to 40 per cent less energy than manufacturing new ones, according to Bee'ah. It also saves landfill space because discarded plastics take hundreds of years to degrade.
Both Mr Wilkes and Mr Sinha said more plastic waste could be recovered for recycling if, rather than throwing away drink bottles and other common plastic products, consumers put them in recycling bins.
Bee'ah has already installed roadside recycling bins across Sharjah, and has a depot in Al Qasba. Elsewhere, shopping malls and developers such as Emaar in Dubai offer some recycling infrastructure. Al Ain has a factory capable of extracting 63 tonnes of plastics a day from mixed waste.
In Abu Dhabi, there are no facilities to dispose of plastic separately or to extract it from mixed waste, but schemes to segregate plastic waste are expected to start this year in some residential areas.
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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
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
MATCH INFO
Uefa Champions League semi-final, second leg result:
Ajax 2-3 Tottenham
Tottenham advance on away goals rule after tie ends 3-3 on aggregate
Final: June 1, Madrid
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.”