Biology of UAE deserts an untapped fountain of wealth


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When we think of vibrant biodiversity, the Amazonian jungles, the American Great Plains and the vast oceans come to mind.

And for good reason. They are a prime source of pharmaceuticals, nutritionals and biomass for energy products.

It is for that reason so many of us support efforts to prevent deforestation in the rainforests and overfishing in the oceans.

That global support has helped countries such as Brazil, the United States and Australia implement strict legislation to prevent the export and exploitation of their natural biodiversity by foreigners for commercial purposes.

India and many other developing nations have also set limits on which biodiversity samples can be exported.

But in our part of the world, there is still a perception that the desert is a barren place, and thus, does not need protection.

In fact, Abu Dhabi and the UAE have a unique and unexplored environment full of natural diversity that is only found in the Arabian Peninsula.

From the oil rich salicornia plants that thrive in the UAE's stark saltflats, to the nourishing and medicinal ghaf trees that survive in the dunes, our coasts, desserts, wadis, and sabkhas have evolved unique and potentially useful plants and animals, most of which have yet to be discovered.

This unexplored potential is even more important given the UAE's mandate to become more sustainable and prosperous.

Among the unassuming dunes we might find a species that provides us with greater food security, or maybe in our oases we could find a plant that can reduce our dependence on fossil fuels.

There is a wealth of unknown potential for the development of new bio-based renewable and sustainable industries, and preliminary exploration efforts have already begun.

The Marine Research Centre in Umm Al Qaiwain is studying compounds made from sea grass and corals for medicinal and pharmaceutical uses.

Fujairah, too, has opened a research station at Wadi Wurayah Mountain Protected Area to study the natural biodiversity of the freshwater wadi.

Meanwhile, researchers at UAE University are looking for anti-cancer and antimicrobial compounds found in native UAE plants. It is currently working to isolate a compound from a plant extract that shows promising initial results stopping the growth of cancerous cells.

In my own laboratory at the Masdar Institute of Science and Technology, we are investigating the microbes and algae that live in the desert as a source of biofuels.

We have isolated several native microbial species and algae, which we are characterising in the laboratory. This work has led an Emirati student, Ahmed Al Harethi, to file a patent on an isolate of one native algal strain - AAH001 - with the US patent and trade office.

All these initial findings hint at the hidden potential for the development of intellectual property that will provide the base for new entrepreneurial opportunities for the UAE.

But all this work will be for nothing if there is no legislation that protects our natural biodiversity from being exported and used in other places around the world without our consent.

The UAE, through the Environmental Agency Abu Dhabi, has established guidelines on how to protect our environment to preserve our biodiversity for the future generations.

There is no formal legislation, however, preventing the export of our most precious natural resources. It is our hope that the UAE will soon join the ranks of nations like the US and Costa Rica, and put in place laws and limits to ensure its irreplaceable natural wealth is protected.

The desert and the ocean have always been a key part of the UAE's history. They have provided food and substance for our past generations. With proper care and stewardship, the bounty hidden in their depths can bring sustainable and renewable prosperity to a new generation of UAE citizens.

Dr Hector Hernandez is an assistant professor of chemical engineering at the Masdar Institute of Science and Technology.

At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

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Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

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Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

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The five pillars of Islam

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5. Zakat 

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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About Housecall

Date started: July 2020

Founders: Omar and Humaid Alzaabi

Based: Abu Dhabi

Sector: HealthTech

# of staff: 10

Funding to date: Self-funded

The bio

Favourite book: The Alchemist by Paulo Coelho

Favourite travel destination: Maldives and south of France

Favourite pastime: Family and friends, meditation, discovering new cuisines

Favourite Movie: Joker (2019). I didn’t like it while I was watching it but then afterwards I loved it. I loved the psychology behind it.

Favourite Author: My father for sure

Favourite Artist: Damien Hurst

Sole survivors
  • Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
  • George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
  • Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
  • Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
UNSC Elections 2022-23

Seats open:

  • Two for Africa Group
  • One for Asia-Pacific Group (traditionally Arab state or Tunisia)
  • One for Latin America and Caribbean Group
  • One for Eastern Europe Group

Countries so far running: 

  • UAE
  • Albania 
  • Brazil 
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Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

UAE currency: the story behind the money in your pockets
India cancels school-leaving examinations

 

 

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RESULT

Bayern Munich 3 Chelsea 2
Bayern: Rafinha (6'), Muller (12', 27')
Chelsea: Alonso (45' 3), Batshuayi (85')

Global state-owned investor ranking by size

1.

United States

2.

China

3.

UAE

4.

Japan

5

Norway

6.

Canada

7.

Singapore

8.

Australia

9.

Saudi Arabia

10.

South Korea

Our Time Has Come
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Reputation

Taylor Swift

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