Tens of thousands of fishermen and their families living in remote areas of Indonesia were given access to solar-powered lights after the UAE funded a sustainable community project there.
Last month, 3,600 solar lanterns and 1,000 mobile-charging solar lanterns were distributed to families in Pulau Laut Selatan, in the Kotabaru Regency of Indonesia, bringing them a sustainable light source for the first time.
Previously, the 20,000 residents, who had no access to electricity, relied on candles, diesel generators or kerosene lamps at night.
The solar project was among the first group included in the 20by2020 initiative managed by the Zayed Sustainability Prize and that aimed to bring environmentally sustainable solutions to 20 remote communities across the globe by the end of 2020.
Now, our communities can carry out activities at night, especially fishing, to fulfil their family's economical needs
Other projects included the installation of filtered water fountains in Cambodia and Madagascar, bringing solar street lamps to Rohingya refugee camps in Cox’s Bazaar in Bangladesh, and areas of Amman in Jordan, Asyut in Egypt, Tanzania, Nepal and Uganda.
The solar project in Indonesia will allow fishermen to safely venture out to sea at night, let children study into the evening and make homes safer without the risk of burning kerosene lamps.
“Now, our communities can carry out activities at night, especially fishing, to fulfil their family's economical needs,” said Syahr Ani, head of West Laut Island Division at the Kotabaru Regency.
“Prior to the 20by2020 installation, the fishermen brought flashlights or lamps with kerosene, which cost more money.
“With the help of these clean lighting solutions, the overall expenses for our fisherman will definitely be reduced.”
A local fisherman from the Nelayan Teluk Kemuning village said the solar lights made his job safer at night.
“Now I can see the trees drifting in the sea and can avoid them when fishing,” said Jahrani.
“The lights can be charged simply by exposing them to the sun, making it easier when I am in the middle of the ocean.”
Parents said the project was beneficial to their children, who no longer had to rely on natural light for study.
“The light helps my child study at various hours of the night,” said Santalia, a resident of the Lontar Timur village.
“With this solution, reading, and doing homework are easier because this lamp can also provide enough lighting to support the current ‘school-from-home’ situation during the pandemic.”
The project was carried out in collaboration between two Zayed Sustainability Prize winners: D.light, which won in 2013, and Kopernik, which won in 2016.
US company D.light delivered the solar-powered solutions while Kopernik, an Indonesian non-profit organisation, oversaw the implementation on the ground.
Since it launched in 2008, the Zayed Sustainability Prize has rewarded 86 winners, whose solutions or school projects have directly and indirectly affected 352 million people around the world.
Through direct funding, the annual award supports social initiatives that harness new technologies to change lives for the better.
The $3 million (Dh11m) prize fund is divided equally between the winners of the five categories, with each allocated $600,000 (Dh2.2m).
The Global High Schools category recognises six winners, from six world regions, with each winning school eligible to claim up to $100,000 (Dh367,000) in funding.
The 20by2020 initiative was launched in December 2019 to export winning projects to 20 places around the world by the end of last year. The initiative has since expanded and is now known as Beyond2020 to continue its work beyond last year. Projects are currently under way in Costa Rica and Bangladesh.
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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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