Workers at Metito's desalination plant in Dubai. The firm is looking into solar desalination.
Workers at Metito's desalination plant in Dubai. The firm is looking into solar desalination.
Workers at Metito's desalination plant in Dubai. The firm is looking into solar desalination.
Workers at Metito's desalination plant in Dubai. The firm is looking into solar desalination.

Solar desalination 'the only way' for Gulf to sustainably produce water


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DOHA // Within decades, solar-powered desalination plants will be the only way for the GCC to sustainably produce water, an expert said yesterday.

Current desalination systems are expensive and inefficient, and might last only another 30 years in the Gulf, said Dr Adil Bushnak, the chairman of Bushnak Group, a desalination company in Saudi Arabia.

"But after that we cannot continue the same way we are doing now," Dr Bushnak said on the sidelines of the 10th Gulf Water Conference, in Doha.

He proposes that GCC states use the money they saved by going solar to cover the cost of the transition.

"Every barrel of oil we save because we built solar should go to that fund to finance the extra cost of solar [plants]," Dr Bushnak said. "Wishful thinking is not enough. We have to set targets."

The UAE desalinates its water with non-solar methods, including thermal and reverse-osmosis (RO) desalination plants. But these require a lot of power from oil or from electricity, which is largely produced in oil-fired plants.

And although energy is cheap in the GCC, it might not stay that way.

In solar desalination, photovoltaic panels turn sunlight into energy.

The solar energy then powers groundwater pumps, and the water is forced through a membrane to remove the salt.

"We are building very inefficient desalination plants, which will be very expensive to maintain," said Dr Bushnak.

"They are inefficient in terms of energy and in terms of cost of water. Of course it is cheaper to build but not the cheapest water to produce."

And as the UAE is the world's third-biggest desalinator, after Saudi Arabia and the US, change is urgently needed.

"Just like Qatar did, we need to decide to move to solar desalination and I hope all the other [Gulf] countries follow," said Dr Bushnak.

Abu Dhabi has already started. Last January, the Environment Agency - Abu Dhabi announced it had completed 22 small-scale solar desalination plants and was planning eight more, each producing almost 11,000 cubic metres of water a year.

But that is a drop in the ocean compared with the emirate's total production of more than 1.7 million cu metres a day.

Metito, a Dubai water-treatment company, is also looking at building solar desalination plants.

Bassem Halabi, the company's group business development director, said that although solar energy was free hardware and maintenance costs had to be accounted for.

"The sandstorms and wind-blown dust [in] the region also limit the efficiency of the panels and, subsequently, the energy produced," said Mr Halabi.

And large-scale solar desalination is still a way off being commercially viable.

"It's too early for the technology to reach the level of production that's required today," said Dr Corrado Sommariva, the president of the International Desalination Association in Abu Dhabi.

"There are also no policies to encourage renewable and solar desalination to step up from the laboratory to the industrial scale."

And while the UAE has a lot of potential for renewable technology, "at the moment, they cannot compete both with traditional technology because the energy price is cheap in the Middle East and the capital expenditures are high", Dr Sommariva said.

But for Dr Bushnak, the issue cannot wait.

"We are drinking our oil instead of selling it so there will be less income to survive," he said. "We cannot afford it in 10 to 20 years, it will be more expensive."

Without action, he fears catastrophic consequences for the Gulf.

"We will be more thirsty, the economy will be in terrible shape and the society will not be stable," Dr Bushnak said.

The biog

Name: Younis Al Balooshi

Nationality: Emirati

Education: Doctorate degree in forensic medicine at the University of Bonn

Hobbies: Drawing and reading books about graphic design

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

RESULTS

6.30pm Handicap (TB) US$65,000 (Dirt) 1,400m

Winner Golden Goal, Pat Dobbs (jockey), Doug Watson (trainer)

7.05pm Dubai Racing Club Classic Listed Handicap (TB) $88,000 (Turf) 2,410m

Winner: Walton Street, William Buick, Charlie Appleby.

7.40pm Dubai Stakes Group 3 (TB) $130,000 (D) 1,200m

Winner Switzerland, Tadhg O’Shea, Satish Seemar

8.15pm Singspiel Stakes Group 3 (TB) $163,000 (T) 1,800m

Winner Lord Giltters, Adrie de Vries, David O’Meara

8.50pm Al Maktoum Challenge Round-1 (TB) $228,000 (D) 1,600m

Winner Military Law, Antonio Fresu, Musabah Al Muhairi.

9.25pm Al Fahidi Fort Group 2 (TB) $163,000 (T) 1,400m

Winner Land Of Legends, Frankie Dettori, Saeed bin Suroor

10pm Dubai Dash Listed Handicap (TB) $88,000 (T) 1,000m

Winner Equilateral, Frankie Dettori, Charles Hills.

Company Profile

Company name: Big Farm Brothers

Started: September 2020

Founders: Vishal Mahajan and Navneet Kaur

Based: Dubai Investment Park 1

Industry: food and agriculture

Initial investment: $205,000

Current staff: eight to 10

Future plan: to expand to other GCC markets

TV: World Cup Qualifier 2018 matches will be aired on on OSN Sports HD Cricket channel

Desert Warrior

Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5

Turkish Ladies

Various artists, Sony Music Turkey 

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.”