The Environment Agency – Abu Dhabi said rotting debris from the dhow at Mina fishing port was a cause for concern to marine life and the environment. Ravindranath K / The National
The Environment Agency – Abu Dhabi said rotting debris from the dhow at Mina fishing port was a cause for concern to marine life and the environment. Ravindranath K / The National

Sunken fishing dhow remains unattended



ABU DHABI // A 50-foot fishing dhow that sunk in the harbour at Mina Zayed more than five months ago has still not been moved.

Parts of the vessel were still sticking up on Wednesday even though it had sunk further into the sea. Its bow section is still a foot above water. The dhow is close to the Abu Dhabi Fishermen Cooperative Society office, which said last month said it was unaware of the craft. The Environment Agency – Abu Dhabi (Ead) said rotting debris from the dhow was a cause for concern to marine life and the environment, but it did not fall under the authority’s jurisdiction.

“Ead is not in charge of port or waterway management,” said Ayesha Al Blooshi, terrestrial and marine biodiversity director at the authority. “Ead is only in charge of fisheries management, that is, issuing commercial and recreational fishing licences, and is also on the fisheries committee with the Ministry of Environment and Water to approve commercial fishing boat licences.”

“Ead is, of course, concerned with the environmental impacts of this incident and has raised the issue for action.”

Dr John Burt, associate professor of biology at New York University Abu Dhabi and head of the Marine Biology Laboratory, said he was concerned that thousands of gallons of pollutants had seeped into the water, where the wreckage had been left unattended.

“Aside from the pollutants and potential environmental damage, the boat, of course, serves as a navigational hazard for other boaters in the area,” Dr Burt said. “Given that the dhow was not intentionally sunk, it is likely that the engine, bilge and other parts of the ship still contained pollutants when the boat went down. In particular, recently sunken vessels will often leak fuel and oil for some time. If the hull is breached, it’s likely that this will disperse to the surrounding area. Given the size of these dhows, a boat like this was probably carrying in the order of several hundred to 1,000 gallons of fuel, so this is not a trivial amount.”

As oil floats, the environmental impact would be limited to the tidal shorelines in the surrounding areas, including beaches, mudflats, seawalls or mangrove stands, Dr Burt said.

S Maggan, 45, a fisherman of 15 years, said: “There are many old boats moored here for years that need to be removed. It’s been more than five months, but nobody has removed the debris.”

He said one of the problems was that instead of having old, decaying boats removed, many owners just removed the valuables and left the dhows to rot.

The Ministry of Environment and Water did not respond to The National's questions sent to them two weeks ago.

anwar@thenational.ae

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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.”

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