A fish seller walks toward the fish cutters, who take turns to prepare the selected fish for the customers in Abu Dhabi. Silvia Razgova / The National
A fish seller walks toward the fish cutters, who take turns to prepare the selected fish for the customers in Abu Dhabi. Silvia Razgova / The National

UAE fishermen prepared to change their tune in face of falling stocks



ABU DHABI // As witnesses to the gradual decline in marine populations, fishermen in the UAE for years thought they had nothing to do with it.

The narrative, fishermen believed, was that habitat destruction as a result of rapid modernisation was solely responsible for their decreasing catches and, consequently, income.

“Fishermen care about domestic commercial fish. But some of them don’t see the beauty, the link between those species, the habitat and sustainability,” said Ahmed Al Hashimi, director of biological diversity at the Ministry of Climate Change and Environment.

“They are in love with the sea, it’s just that many of them did not know how responsible they were for its destruction.”

The reality is that fishermen often fish at coral reefs – the “cities of the ocean” – because they connect hauling in good catches to those areas, but they have unknowingly been wiping away entire colonies of coral by dropping anchor among it.

To help them to understand the implications, Mr Al Hashimi and the Environment Agency Abu Dhabi trained fishermen in sustainable fishing.

As a hard measure and to better protect the industry, the UAE labelled 10 per cent of its oceans as marine protected zones, prompting Yale University to award it a “best rating” in its Environmental Protection Index.

The move was met with reluctance by fishermen last March, with many demanding unlimited access to the seas.

Mr Al Hashimi believes fishermen would be more willing to scale down their catches if they were aware of just how depleted and endangered the seas were.

“When you’re close to the environment, it’s easy to love it and you’ll do anything to protect it,” he said. “All that is needed is some education and the rest will follow.”

Bu Mohammed, a fisherman who owns two boats and has more than 20 years in the industry, said it was hard for many of his colleagues to accept that they may have been a catalyst for the depletion of fish reserves.

“We’d drop our anchors without a second thought,” he said. “We had absolutely no idea that coral was something living and breathing and we were destroying it.”

For fishermen, the desire to protect the environment is coupled with a need to maintain their livelihood.

“Education changed a lot of things. One thing was clear – that we catch less,” said Bu Mohammed. “Yes, habitat destruction is a key component in that but, also, we had no idea. Now people are beginning to change their minds, maybe because of our love for the sea but also maybe because our catch yields are so low that a change is needed.”

He began changing his habits after learning more about the destruction fishing was causing.

But for years prior to that, fishermen thought that the reduction in fish stocks was solely the result of habitat destruction as a result of rapid modernisation.

“We are constantly being told by the authorities that we need to abide by the laws,” said K M, a representative from Fujairah fishermen’s society.

The Environment Agency Abu Dhabi is conducting a five-year survey on fisheries that should indicate if measures are working.

“If we don’t dive, at least we read and understand and, ultimately, respect. But these older fishermen, they had no idea. Some of them can’t read, so it was a shock and some, of course, still don’t accept it,” K M said.

nalwasmi@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.”