Swarms of locusts, like these, have descended on Abu Dhabi's Al Dhafra area. Getty Images
Swarms of locusts, like these, have descended on Abu Dhabi's Al Dhafra area. Getty Images
Swarms of locusts, like these, have descended on Abu Dhabi's Al Dhafra area. Getty Images
Swarms of locusts, like these, have descended on Abu Dhabi's Al Dhafra area. Getty Images

Red Sea locust swarms spark UN warning for UAE, Saudi Arabia and Egypt


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Massive swarms of locusts are bearing down on Saudi Arabia and Egypt as they spread rapidly along the shores of the Red Sea, the United Nations has warned.

Breeding along the coasts of Eritrea and Sudan, the swarms are spreading farther afield, with at least one having crossed over the Red Sea to Saudi Arabia in mid-January and more a week later.

Swarms also went north along the Red Sea towards Egypt.

In January, Abu Dhabi's Al Dhafra area was covered in a cloud of the flying insects.

The UN is calling on countries in the flight path to step up vigilance and take precautions.

"Good rains along the Red Sea coastal plains in Eritrea and Sudan have allowed two generations of breeding since October, leading to a substantial increase in locust populations and the formation of highly mobile swarms," the UN’s Food and Agriculture Organisation said on Friday.

Adult locusts can eat their body weight in fresh vegetation every day and the FAO warned that even a small swarm can eat enough food for 35,000 people in just 24 hours.

A female locust is able to lay around 300 eggs in her short life, meaning swarms can measure miles wide and be made up of hundreds of millions of individuals. They can strip the land bare as they fly through.

Tackling swarms is also made difficult because they are highly mobile and able to fly up to 150 kilometres a day.

The FAO is planning to hold a meeting in Jordan next week to discuss measures to tackle the spread and how to assist affected countries.

“The devastating impact locusts can have on crops poses a major threat to food security, especially in already vulnerable areas,” the FAO said.

The issue of higher breeding is not only confined to Eritrea and Sudan. Rains from cyclones Mekunu in May and Luban last October triggered a mass breeding of locusts in Saudi Arabia’s Empty Quarter, near the Yemen-Oman border.

Hatching was also recorded around the villages of Thuwal and Masturah, south-west of Medina on the kingdom’s west coast.

The UN agency said a few swarms from two generations of breeding had reached the UAE and as far as southern Iran. However, with no signs of slowing, swarms could reach the India-Pakistan border if unchecked.

"The next three months will be critical to bringing the locust situation under control before the summer breeding starts," said Keith Cressman, the FAO's senior kocust forecasting officer.

"The further spread of the current outbreak depends on two major factors – effective control and monitoring measures in locust breeding areas of Sudan, Eritrea and Saudi Arabia and the surrounding countries, and rainfall intensity between March and May along both sides of the Red Sea and in the interior of the Arabian Peninsula."

Aerial spraying and ground control operations have already taken place across Saudi Arabia, Sudan, Egypt and Eritrea. So far, nearly 85,000 hectares – about eight-and-a-half times the area of Abu Dhabi island – has been treated since December, 30,000 hectares in the past two weeks alone.

A light plane sprays pesticides as a Swarm of locusts hits an area near the Egyptian border. Getty Images
A light plane sprays pesticides as a Swarm of locusts hits an area near the Egyptian border. Getty Images

Control measures are also under way in Iran after at least one swarm arrived on the southern coast at the end of January.

The outlook for February is that breeding will continue along the Red Sea coast, leading to more “hopper bands and adult swarms”.

The FAO warned that “as vegetation dries out, adult groups and a few swarms are likely to move north along the Red Sea coast”.

It predicted this would largely have an impact on northern areas around the Nile Valley in northern Sudan, but there was a “moderate risk” that swarms would continue to cross the Red Sea towards Saudi Arabia and the UAE.

Mr Cressman told Reuters that the previous major desert locust upsurge was between 2003 and 2005, when more than 12 million hectares – about twice the size of the UAE – were treated in west and north-west Africa. The swarm response cost some $750 million, including food aid to affected areas.

Since then there have been numerous outbreaks along the coastal plains on both sides of the Red Sea, but they have mostly been controlled.

The FAO operates an early warning system across parts of Africa and the Middle East where swarms breed. On-the-ground observers armed with tablets can feed data to the Rome FAO office in real time that is then put together with weather reports, historical patterns and satellite imagery to predict where there will be major outbreaks.  Forecasts are made for up to six weeks in advance.

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The struggle is on for active managers

David Einhorn closed out 2018 with his biggest annual loss ever for the 22-year-old Greenlight Capital.

The firm’s main hedge fund fell 9 per cent in December, extending this year’s decline to 34 percent, according to an investor update viewed by Bloomberg.

Greenlight posted some of the industry’s best returns in its early years, but has stumbled since losing more than 20 per cent in 2015.

Other value-investing managers have also struggled, as a decade of historically low interest rates and the rise of passive investing and quant trading pushed growth stocks past their inexpensive brethren. Three Bays Capital and SPO Partners & Co., which sought to make wagers on undervalued stocks, closed in 2018. Mr Einhorn has repeatedly expressed his frustration with the poor performance this year, while remaining steadfast in his commitment to value investing.

Greenlight, which posted gains only in May and October, underperformed both the broader market and its peers in 2018. The S&P 500 Index dropped 4.4 per cent, including dividends, while the HFRX Global Hedge Fund Index, an early indicator of industry performance, fell 7 per cent through December. 28.

At the start of the year, Greenlight managed $6.3 billion in assets, according to a regulatory filing. By May, the firm was down to $5.5bn. 

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Four stars

The Bio

Hometown: Bogota, Colombia
Favourite place to relax in UAE: the desert around Al Mleiha in Sharjah or the eastern mangroves in Abu Dhabi
The one book everyone should read: 100 Years of Solitude by Gabriel Garcia Marquez. It will make your mind fly
Favourite documentary: Chasing Coral by Jeff Orlowski. It's a good reality check about one of the most valued ecosystems for humanity

What vitamins do we know are beneficial for living in the UAE

Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.

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Document everything immediately; including dates, times, locations and witnesses

Seek professional advice from a legal expert

You can report an incident to HR or an immediate supervisor

You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline

In criminal cases, you can contact the police for additional support

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Fourth Arab Economic and Social Development Summit

As he spoke, Mr Aboul Gheit repeatedly referred to the need to tackle issues affecting the welfare of people across the region both in terms of preventing conflict and in pushing development.
Lebanon is scheduled to host the fourth Arab Economic and Social Development Summit in January that will see regional leaders gather to tackle the challenges facing the Middle East. The last such summit was held in 2013. Assistant Secretary-General Hossam Zaki told The National that the Beirut Summit “will be an opportunity for Arab leaders to discuss solely economic and social issues, the conference will not focus on political concerns such as Palestine, Syria or Libya". He added that its slogan will be “the individual is at the heart of development”, adding that it will focus on all elements of human capital.

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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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