Abu Dhabi lies in one of the world’s most water scarce regions and securing water for an expanding population is one of the key security measures that emirate is taking. Randi Sokoloff / The National
Abu Dhabi lies in one of the world’s most water scarce regions and securing water for an expanding population is one of the key security measures that emirate is taking. Randi Sokoloff / The National

UAE making major efforts to overcome water conservation's 'many challenges'



Major efforts are being made to ensure the UAE’s water reserves are conserved, officials said, after an international study highlighted concerns over the depletion of the country’s underground supplies.

The 2017 Food Sustainability Index (FSI) ranked the Emirates at the bottom of 34 countries forsustainable agriculture, with the high use of dwindling resources in aquifers a key factor.

The UAE was also ranked 34th for food loss and waste, although The Economist Intelligence Unit (EIU), which published the FSI, said the figures may not be reliable.

In terms of nutritional challenges, the UAE was ranked 12th, achieving the highest status of Arab countries, with fewer people lacking essential nutrients.

Released through the Barilla Centre for Food and Nutrition, the FSI analysed 34 countries, accounting for two-thirds of the world’s population and 85 per cent of its GDP.

Among all three categories, the UAE was ranked 34th, while the top spot was taken by France, followed by Japan and Germany.

The nations surveyed included Ethiopia, South Korea, Sweden and the United States, and from the Arab world, Egypt, Jordan, Lebanon, Morocco, Saudi Arabia and Tunisia.

Martin Koehring, EIU managing editor, said the UAE stood out as a high-income country with a low level of agricultural sustainability. Most high-income nations surveyed were near the top of the sustainable agriculture table, although their climates were different and they did not face severe water scarcity.

“In terms of sustainable agriculture, the UAE has problems. There’s a lack of rainfall, so there's a heavy reliance on aquifers and expensive desalination, and a high level of greenhouse gas emissions from agriculture in the UAE,” said Mr Koehring.

He suggested there could be greater efforts to educate farmers about water conservation.

In a statement, the Environment Agency – Abu Dhabi (EAD) said the UAE, through the UAE Vision 2021, which identifies development priorities, highlights water scarcity as a key performance indicator for sustainability.

EAD said the Abu Dhabi emirate faced “many challenges” regarding water resources, including a scarcity of fresh water. Daily domestic consumption, at 590 litres per capita, is “one of the highest in the world”.

“EAD, along with key stakeholders, is taking extraordinary measures to address the groundwater challenge, while the Abu Dhabi Government is aware of the importance of groundwater resources as part of the emirate’s natural heritage.”

EAD said there were more than 1,300 groundwater monitoring stations in the emirate and its well inventory project will enable it to measure all wells for salinity, water levels, pollution and other variables.

Solar-powered desalination plants are producing fresh water from saline groundwater, expanding supplies for crops. Also, a water tariff introduced two years ago encourages more careful desalinated water usage.

Meanwhile, a 2016 law strengthens the rules around illegal groundwater use and requires farms to have meters.

“The implementation of this law will reduce groundwater use and slow down the depletion of our aquifers, helping to support the longer-term future of the agricultural sector, forests that provide benefits and natural ecosystems,” said EAD.

“This is a very important step; however, to truly achieve sustainable use of groundwater requires a complete rethink of how we plan for and allocate all types of groundwater in an integrated way.”

Jeffrey Culpepper, chairman of AgriSecura, an agriculture investment firm in Dubai, said the country's lack of sustainability "has been a problem for a long time and we've been discussing it for a long time". He said there were "some incredibly smart people in government" who understood the issue, but introducing wholesale reforms was difficult.

The key issue he cited was water subsidies, which discouraged water conservation by farmers. "The number they're convincing to use low water [farming] techniques is not keeping pace," said Mr Culpepper.

One solution he suggested would be to scrap subsidies several years on. Only such a "draconian government rule" would, he said, solve the issue, although a shake-up wouldconfront long-held agricultural traditions.

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EAD said the 2016 law would help it to gain more control over water usage by farmers, allowing it to issue groundwater permits to farms and forests specifying how much water could be removed and what it could be used for. A “crop calculator” indicates how much can be used, with a similar measure for forest trees being developed.

In high-demand areas, farmers will have to install meters while the new law allows EAD to permit the installation of on-farm desalination plants.

The agency said other organisations, such as Abu Dhabi Food Control Authority (ADFCA) and Abu Dhabi Farmers’ Services Centre (ADFSC) were taking measures such as promoting bio-saline agriculture (in which salt water is used to irrigate crops) and hydroponics (where sand or gravel may be used instead of soil, cutting water usage) instead of open-field agriculture.

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Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

ICC Women's T20 World Cup Asia Qualifier 2025, Thailand

UAE fixtures
May 9, v Malaysia
May 10, v Qatar
May 13, v Malaysia
May 15, v Qatar
May 18 and 19, semi-finals
May 20, final

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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RESULT

Kolkata Knight Riders 169-7 (20 ovs)
Rajasthan Royals 144-4 (20 ovs)

Kolkata win by 25 runs

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UAE currency: the story behind the money in your pockets
What is the FNC?

The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning. 
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval. 
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
 

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Dust and sand storms compared

Sand storm

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Dust storm

  • Particle size: Much finer, lightweight particles
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  • Travel distance: Long-range, up to thousands of kilometres
  • Source: Can be carried from distant regions
The years Ramadan fell in May

1987

1954

1921

1888