Illegal dumping suspected as oil slicks sighted off Fujairah



Three oil slicks in the Arabian Gulf are threatening to wash up on the shores of Fujairah, local fishermen say. They are concerned by an increase in the number of slicks since the start of the year after an apparent reduction in previous months. The slicks, which threaten marine life and the coastline, are thought to be the result of illegal dumping by tankers.

"One thing's for sure, whatever it was that allowed these slicks to happen is now back," said Wayne de Jager, the owner of East Coast Fishing Charters, a small sport fishing company in Fujairah. "It started getting bad again about a month ago. We're discovering this oil all around us now. Literally, it's all over the place and it's getting worse." Mr de Jager said he and his crew saw three slicks over the weekend - 5km, 12km and 20km offshore. Some of the oil could wash up today or tomorrow, he and others said.

Andrey Malinin, 41, a Russian resident of Fujairah who regularly fishes in the area, said he and several friends saw a vessel dumping what appeared to be diesel fuel into the water at 8am on Saturday. "I was afraid to light my cigarette next to the boat, it was so bad," he said. "There was a drainage point on the hull that was spewing the oil in the water." Fujairah, whose refuelling facilities accommodate nearly 200 tankers at any given time, has long been plagued by oil slicks.

Hoteliers in the emirate complain that business has been damaged by oil residue and diesel fuel that regularly blacken the beaches, while diving shops in the area have also been affected. Environmentalists have warned that petrochemicals are destroying delicate marine ecosystems. Fishermen said they noticed an improvement since July, when Fujairah authorities, vowing to stop illegal dumping, began penalising boats. In September, after fishermen released photographs of a Saudi Arabian-managed vessel discharging fuel, the operator was fined several thousand dirhams.

The area is monitored only by a flotilla of Coast Guard and port vessels, plus a space satellite that keeps an eye on a dozen more oil-producing countries. The lack of monitoring in the area makes it difficult to first find and then punish violators. Capt Musa Murad, the director general of Fujairah Port, said recently that officials had been exploring ways of improving monitoring. He did not elaborate.

Meanwhile, fishermen say pollution of the waters has seriously damaged their ability to earn a living. Mr Malinin said it had been nearly impossible over the past few weeks to find a clean spot to drop anchor. Fujairah has also been plagued by an outbreak of red tide, an algal bloom that emits foul odours and can poison underwater ecosystems. "The conditions are disappointing, to say the least," Mr Malinin said. "In all my time in the UAE, the current water conditions - the oil, the red tide - I've never quite seen anything like this. There's almost no reason to have a fishing boat here any more."

hnaylor@thenational.ae

The Melbourne Mercer Global Pension Index

The Melbourne Mercer Global Pension Index

Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.

The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.

“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.

“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”

Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.

Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.

“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.

Key Points
  • Protests against President Omar Al Bashir enter their sixth day
  • Reports of President Bashir's resignation and arrests of senior government officials
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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.”

Final scores

18 under: Tyrrell Hatton (ENG)

- 14: Jason Scrivener (AUS)

-13: Rory McIlroy (NIR)

-12: Rafa Cabrera Bello (ESP)

-11: David Lipsky (USA), Marc Warren (SCO)

-10: Tommy Fleetwood (ENG), Chris Paisley (ENG), Matt Wallace (ENG), Fabrizio Zanotti (PAR)

TWISTERS

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Starring:+Glen+Powell,+Daisy+Edgar-Jones,+Anthony+Ramos

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COMPANY PROFILE

Company name: Klipit

Started: 2022

Founders: Venkat Reddy, Mohammed Al Bulooki, Bilal Merchant, Asif Ahmed, Ovais Merchant

Based: Dubai, UAE

Industry: Digital receipts, finance, blockchain

Funding: $4 million

Investors: Privately/self-funded

Kill

Director: Nikhil Nagesh Bhat

Starring: Lakshya, Tanya Maniktala, Ashish Vidyarthi, Harsh Chhaya, Raghav Juyal

Rating: 4.5/5

Inside Out 2

Director: Kelsey Mann

Starring: Amy Poehler, Maya Hawke, Ayo Edebiri

Rating: 4.5/5


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