UAE partners with Netherlands on water conservation and efficiency



ABU DHABI // The countries could hardly be more different, but The Netherlands and the UAE have found common ground in how they could deal with water scarcity.

The Dutch envoy for international water affairs, Henk Ovink, visited Abu Dhabi for Sustainability Week and said there were many opportunities for the countries to cooperate on efficient water use.

“There is a lot of development going on but it is not enough,” Mr Ovink said. “It is an opportunity for the UAE to collaborate across the Gulf and for The Netherlands to bring knowledge and expertise to that collaboration and strengthen the approach of water resilience.”

The knowledge and expertise Mr Ovink referred to included increasing the way water reuse is managed and organised, and how to capture rainfall.

“It is critical to have a strong knowledge base to build capacity in organisations that deal with water,” Mr Ovink said.

Dutch research groups – such as Deltares, which opened an office in the capital on Tuesday – and Wageningen University, are researching ways to cut water use in energy production.

“We have been busy providing information about the water levels and waves for oil companies,” said Geoff Toms, manager of Deltares in the Middle East and the Gulf.

“It helps them in the design [of] their offshore structures. We do studies helping [organisations] like the Environment Agency – Abu Dhabi to look at their groundwater resources in a different way.”

Other studies from these groups included an assessment of the recirculation of saline water discharged from desalination plants, as well as its effect on Gulf waters combined with global warming.

Results are given to the Ministry of Environment and Water and the private sector. “It is really [about] making the water technology of The Netherlands available to the users here that could use that knowledge and share and develop it with us,” Mr Toms said.

Agricultural experts said The Netherlands represented a strong technology partner for the UAE. “As a densely populated country with intensive industrial and agricultural production, The Netherlands has had to develop world-class technologies to protect its limited supplies of good quality water, due to the country lying below sea level,” said Nicholas Lodge, managing partner at the Abu Dhabi-based agriculture consultancy Clarity.

The World Economic Forum ranked water shortages as the leading crises for the next 10 years.

cmalek@thenational.ae

UAE squad

Ali Kashief, Salem Rashid, Khalifa Al Hammadi, Khalfan Mubarak, Ali Mabkhout, Omar Abdelrahman, Mohammed Al Attas (Al Jazira), Mohmmed Al Shamsi, Hamdan Al Kamali, Mohammad Barghash, Khalil Al Hammadi (Al Wahda), Khalid Eisa, Mohammed Shakir, Ahmed Barman, Bandar Al Ahbabi (Al Ain), Adel Al Hosani, Al Hassan Saleh, Majid Suroor (Sharjah), Waleed Abbas, Ismail Al Hammadi, Ahmed Khalil (Shabab Al Ahli Dubai) Habib Fardan, Tariq Ahmed, Mohammed Al Akbari (Al Nasr), Ali Saleh, Ali Salmeen (Al Wasl), Hassan Al Mahrami (Baniyas)

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 

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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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia