UN's environment chief positive about Abu Dhabi bid for Irena HQ



NEW YORK // The UN's environment chief, Achim Steiner, has spoken positively of the UAE's bid to host the headquarters of a global green energy body. Members of the International Renewable Energy Agency (Irena) will meet in Egypt at the end of this month to choose between bids from Abu Dhabi, Vienna, Copenhagen and Bonn.

By encouraging the capital, Mr Steiner, the director of the UN Environment Programme (Unep), joins a chorus of global figures including the former British prime minister Tony Blair, the UN secretary general Ban Ki-moon and Amr Moussa, the secretary general of the League of Arab States. Mr Steiner said building Irena's nerve centre in a non-Western city would send a "positive message" to the developing world and spur governments to embrace clean power.

The German environmentalist's perspective is particularly relevant because his own agency, based in Nairobi, is one of the very few global bodies with its headquarters outside the West. "The history of Unep documents that it is feasible to operate outside the traditional centres of international policymaking," he said. "Especially in this day and age with internet communications, long distances are not the same as they were 30 years ago."

His comments follow support from Mr Moussa, who said "there has to be a first time" for a member of the 22-nation Arab group to host a global agency. Mr Ban said the Government had presented a "strong argument" while Mr Blair stressed the "powerful signal" a UAE victory would send to developing nations. Rapidly industrialising nations in the developing world are increasingly contributing to greenhouse gas emissions and are widely seen as key actors in efforts to combat climate change.

By the end of April the UAE, Germany, Austria and Denmark had submitted their bids, including proposals for location and design, a legal framework and funding information. Abu Dhabi plans to house the agency's 120 staff in a purpose-built facility on the fringes of the capital in Masdar City. Foreign ministry officials have campaigned hard, especially since last month's controversial decision to base the Gulf's proposed joint central bank in Riyadh rather than the UAE.

The proposal includes US$135 million (Dh500m) of in-kind and cash support to help the agency in its incubation period until 2015. This is in addition to an annual US$50m from the Abu Dhabi Fund for Development, which would support Irena-endorsed projects in developing nations over seven years. The agency's headquarters in Masdar City would be provided with 6,436 square metres of office space free of charge.

Delegates representing Irena's 88 member states will vote on the four candidate cities and designate an interim headquarters for the agency during a two-day summit beginning in Sharm el Sheikh on June 29. Competition from the three European cities is fierce, although the Government is counting on the support of the dozen other Irena members from the Arab world, including Bahrain, Egypt and Jordan.

Non-Arab countries such as Italy, the Dominican Republic, Armenia, Kenya and Switzerland have been reported as either backing or speaking favourably of Abu Dhabi's bid. It is also likely to benefit from the European votes being split during the initial voting rounds. But the tender is likely to be hampered by the UAE's relatively weak record on renewable energy and its emission of large quantities of carbon dioxide.

According to the World Bank, the average UAE resident produced 30.1 tonnes of carbon dioxide last year - significantly more than in Denmark (8.5), Austria (8.9) and Germany (9.5). Mohammed bin Dha'en al Hamili, the Minister of Energy, has sought to address these concerns, saying the UAE has a commitment to "reduce carbon emissions" and to develop "new energy technologies".
jreinl@thenational.ae

The team

Photographer: Mateusz Stefanowski at Art Factory 
Videographer: Jear Valasquez 
Fashion director: Sarah Maisey
Make-up: Gulum Erzincan at Art Factory 
Model: Randa at Art Factory Videographer’s assistant: Zanong Magat 
Photographer’s assistant: Sophia Shlykova 
With thanks to Jubail Mangrove Park, Jubail Island, Abu Dhabi 

 

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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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Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid

When: April 25, 10.45pm kick-off (UAE)
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Second leg: May 1, Santiago Bernabeu, Madrid

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