Desalt Innovation Middle East produces waterproof sand, above, which can help with saltwater erosion and the maintenance of groundwater levels and salinity. Lee Hoagland / The National
Desalt Innovation Middle East produces waterproof sand, above, which can help with saltwater erosion and the maintenance of groundwater levels and salinity. Lee Hoagland / The National
Desalt Innovation Middle East produces waterproof sand, above, which can help with saltwater erosion and the maintenance of groundwater levels and salinity. Lee Hoagland / The National
Desalt Innovation Middle East produces waterproof sand, above, which can help with saltwater erosion and the maintenance of groundwater levels and salinity. Lee Hoagland / The National

UAE-made sand could save thousands of gallons of water


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ABU DHABI // Hydrophobic sand produced in Al Ain could save thousands of gallons of water in agriculture.

The sand, which costs Dh250 per tonne, is non-absorbent and water cannot penetrate it, offering numerous benefits to groundwater reserves and pollution levels.

“It stops the water from percolating to the groundwater or to lower soils below where the roots are,” said Fahad Hareb, the chief executive at Desalt Innovation Middle East, which owns the factory producing the sand. “It also stops the rising effect of groundwater, which brings with it a lot of salt to the surface and the soil.”

Instead of irrigating landscape and crops for 40 minutes a day with sprinklers, which is common in the Arabian Gulf, the company has managed to reduce watering time to two minutes.

“You apply the irrigation system over the sand, and the sweet soil acts as a sponge to capture the water,” said Mr Hareb, an Emirati. “As you pour the water into the soil, some of it gets captured but, over time, most of it gets lost as continuous movement down the soil and that’s how you lose water.

“In some areas in Abu Dhabi, we found 75 per cent of water savings because you have no water loss through percolation.”

The system, which can last up to 30 years, also helps with soil salinity.

“We have a capillary rising effect here,” he said. “So we’re stopping the groundwater from rising up as it carries a lot of salt and rises up through the soil. This is an issue because you need a lot of water to keep the salinity levels low, so we’re also protecting the groundwater from salt contamination.

“People say they can use a plastic bag instead, but there will be a lot of fungus and bacteria growth because you stop the natural circulation of oxygen and gases in the soil.”

The project started in 2006 with Mr Hareb’s German partner, Helmut Schulze, who invented the liquid additive. Mr Hareb invested in the product after he saw a lot of potential for its use in the UAE.

“It requires a mixing process with the material to be used and we found that the Al Ain desert sand was a very good source of potential product to mix the additive with,” he said. “This is because it’s a multigrain sand so it compacts really well, which makes it ideal.”

Two years later, a factory was set up and huge projects were outlined. But the 2008 financial crisis halted most of them.

UAE University has since performed tests over a two-year period to ensure the additives were not harmful. Results were successful.

“They found roots were 20 per cent denser and the harvest came out 33 per cent heavier, which was really positive,” said Mr Hareb. “So the plants were not only surviving, they were actually thriving and growing nicely.”

The university has grown alfalfa, rice, tomatoes and lettuce in two greenhouses.

“They also used the soil as a source of research to allow students to get their PhD on its study,” he said. “We also did work in Dubai Investment Park to protect substations from groundwater.”

The sand has drawn international interest from Australia, Canada, Tunisia, Algeria and Germany, where it is currently being used as tile grout.

Mr Hareb hopes to expand more into Abu Dhabi.

“There are a lot of issues in some areas where you have a lot of salt coming from the ground eating into the interlock of villas,” he said. “We’re also looking at flood protection abroad.”

Experts say the system must be economically viable to be worthwhile.

“Evaporation and other losses like drainage are significant issues,” said Nicholas Lodge, managing partner of Clarity, an Abu Dhabi-based agriculture consultancy. “Possibly in the right usage, it could be helpful, although other limiting factors, such as high temperature and low nutrient levels, make most forms of cultivation or farming in arid, sandy regions such as here, questionable in terms of economics, the environment and use of scarce resources.”

cmalek@thenational.ae

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RAFAEL NADAL
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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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Marwan Lutfi says the core fundamentals that drive better payment behaviour and can improve your credit score are:

1. Make sure you make your payments on time;

2. Limit the number of products you borrow on: the more loans and credit cards you have, the more it will affect your credit score;

3. Don't max out all your debts: how much you maximise those credit facilities will have an impact. If you have five credit cards and utilise 90 per cent of that credit, it will negatively affect your score.