The UAE has again topped a list of countries with thelargest environmental footprint.
The UAE has again topped a list of countries with thelargest environmental footprint.
The UAE has again topped a list of countries with thelargest environmental footprint.
The UAE has again topped a list of countries with thelargest environmental footprint.

UAE has world's largest environmental footprint


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The UAE had the world's highest per capita environmental footprint for the third time in a row, according to a report released yesterday by the World Wide Fund for Nature (WWF). The Living Planet report, conducted with the Global Footprint Network and the Zoological Society of London, put the UAE's per capita environmental footprint higher than those of Qatar, Denmark, Belgium and the United States.
The biennial report evaluates 152 countries based on a calculation of what portion of the planet that people living in the countries need to sustain their lifestyles. The environmental footprint ultimately measures the territory - be it cropland, grazing land, forest or fishing grounds - required to produce the food, fibre and wood a country consumes, in addition to the land on which necessary infrastructure will be built and that is needed to absorb the waste and carbon dioxide (CO2) released by a community. The burning of fossil fuels accounts for the largest portion of the footprint. The report was produced based on statistics from 2007, when the world's economy, including that of the UAE, was booming.
And scale matters: while the UAE has the highest per-capita footprint, 10.68 hectares per person, it represents only 0.3 per cent of humanity's total ecological footprint. Half of the countries studied in the report are living beyond their environmental means. In fact, in 2007, humans used up 50 per cent more resources than the Earth could produce. The report predicts that by 2030, humanity will need the equivalent of two Earths to satisfy its needs.
Overall, developed countries topped the study's ranking, while some of the world's poorest countries are ranked at the bottom, with Timor-Leste, also known as East Timor, coming in last. "This is to be expected, given that the UAE is a rapidly developing country that is investing heavily in construction, infrastructure development, provision of water, electricity and food, which has resulted in an increasing rate of consumption of natural resources, particularly energy," said Razan al Mubarak, the managing director of the Emirates Wildlife Society - World Wide Fund for Nature.
"The ranking is not where we want to be," said Majid al Mansouri, secretary general of Environment Agency - Abu Dhabi (EAD). "Yet we are making real progress with our partners to encourage positive environmental change," he said. Because the report relied on data from 2007, it does not account for the effect of some UAE initiatives that would reduce the country's footprint. For example, the effect of initiatives such as Masdar, the world's first carbon-free city, new green-building regulations, and Dubai's Metro system have not been figured into the calculations.
"We encourage every citizen and resident to help us reduce our ecological footprint," said Mr al Mansouri. The report also focuses on biodiversity, estimating declines of an average of 30 per cent between 1970 and 2007. Water is another focus. While scientists conclude that there is enough water for human needs, the challenge is to secure it "in a way that does not destroy the very ecosystems from which we take our water supplies".
The report mentions the Yellow River in China, the Murray River in Australia and the Rio Grande, on the border between the US and Mexico, as examples of rivers running dry because of over-extraction. Water pollution, especially in the developing world, is also mentioned as an issue; an estimated two million tonnes of sewage and other pollutants draining into the world's waters every day, according to the report.
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Key recommendations
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  • Greater use of curfews and exclusion zones to deliver tougher supervision than ever on criminals.
  • Explore wider powers for judges to punish offenders by blocking them from attending football matches, banning them from driving or travelling abroad through an expansion of ‘ancillary orders’.
  • More Intensive Supervision Courts to tackle the root causes of crime such as alcohol and drug abuse – forcing repeat offenders to take part in tough treatment programmes or face prison.

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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Hometown: Bogota, Colombia
Favourite place to relax in UAE: the desert around Al Mleiha in Sharjah or the eastern mangroves in Abu Dhabi
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PROFILE OF CURE.FIT

Started: July 2016

Founders: Mukesh Bansal and Ankit Nagori

Based: Bangalore, India

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Investment: $250 million

Investors: Accel, Oaktree Capital (US); Chiratae Ventures, Epiq Capital, Innoven Capital, Kalaari Capital, Kotak Mahindra Bank, Piramal Group’s Anand Piramal, Pratithi Investment Trust, Ratan Tata (India); and Unilever Ventures (Unilever’s global venture capital arm)

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Expo 2020 Dubai will be the first World Expo to be held in the Middle East, Africa and South Asia

The world fair will run for six months from October 20, 2020 to April 10, 2021.

It is expected to attract 25 million visits

Some 70 per cent visitors are projected to come from outside the UAE, the largest proportion of international visitors in the 167-year history of World Expos.

More than 30,000 volunteers are required for Expo 2020

The site covers a total of 4.38 sqkm, including a 2 sqkm gated area

It is located adjacent to Al Maktoum International Airport in Dubai South

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Wednesday:
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Uefa Champions League final:

Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
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RESULTS
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Heavily-sugared soft drinks slip through the tax net

Some popular drinks with high levels of sugar and caffeine have slipped through the fizz drink tax loophole, as they are not carbonated or classed as an energy drink.

Arizona Iced Tea with lemon is one of those beverages, with one 240 millilitre serving offering up 23 grams of sugar - about six teaspoons.

A 680ml can of Arizona Iced Tea costs just Dh6.

Most sports drinks sold in supermarkets were found to contain, on average, five teaspoons of sugar in a 500ml bottle.