Fifty billion tonnes of sand and gravel are used each year, enough to build a wall 27 metres wide and 27 metres high around planet Earth. Sand is the second most used natural resource worldwide after water.
A new report by the UN Environment Programme has found that given the world’s dependency on it, sand must be recognised as a strategic resource and its extraction and use should be rethought.
The report, Sand and Sustainability: 10 strategic recommendations to avert a crisis, provides guidance gathered from world experts to switch to improved practices for the extraction and management of sand.
Extracting sand in areas in which it plays an active role, such as rivers, and coastal or marine ecosystems, can lead to erosion, salination of aquifers, loss of protection against storm surges and harm to biodiversity, which pose a threat to water supply, food production, fisheries and tourism industry.
The report’s authors wrote that sand must be recognised as a strategic resource, not only as a material for construction, but also for its many roles in the environment.
They stressed that governments, industries and consumers should price sand in a way that recognises its true social and environmental value.
For example, keeping sand on coasts may be the most cost-effective strategy for adapting to climate change based on its protective effect against storm surges and the impact sea level rise. They said such benefits should be factored into its value.
An international standard on how sand is extracted from the marine environment should also be developed, the report proposes.
Meanwhile, the report recommends that the extraction of sand from beaches be banned because of its importance for coastal resilience, the environment and the economy.
“To achieve sustainable development, we need to drastically change the way we produce, build and consume products, infrastructures and services. Our sand resources are not infinite, and we need to use them wisely,” said Pascal Peduzzi, director of Grid-Geneva at UNEP and overall programme co-ordinator for the report.
“If we can get a grip on how to manage the most extracted solid material in the world, we can avert a crisis and move toward a circular economy.”
The report says that sand is critical to economic development, and is needed to produce concrete and build vital infrastructure ranging from homes and roads to hospitals.
By providing habitats and breeding grounds for diverse flora and fauna, sand also plays a vital function in supporting biodiversity, including marine plants that filter water or act as carbon sinks.
The resource will be crucial to achieving the sustainable development goals and tackling the triple planetary crisis of climate change, pollution and biodiversity loss.
However, it is being used faster than it can be naturally replenished, so its responsible management is crucial.
The report’s authors note that solutions exist for moving towards a circular economy for sand, including banning the landfilling of mineral waste and encouraging sand to be reused in public procurement contracts should be considered as new policies.
Crushed rock or recycled construction and demolition material, as well as “ore-sand” from mine tailings are among the viable alternatives to sand that should also be incentivised, the report suggests.
The authors add that new institutional and legal structures are needed for sand to be more effectively governed and best practice shared and implemented.
Sand resources must furthermore be mapped, monitored and reported on, the report recommends.
The paper recommends that all stakeholders must be involved in decisions related to the management of sand to allow for place-based approaches and avoid one-size-fits-all solutions.
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Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
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.”
Results
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Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
The biog
Favourite film: Motorcycle Dairies, Monsieur Hulot’s Holiday, Kagemusha
Favourite book: One Hundred Years of Solitude
Holiday destination: Sri Lanka
First car: VW Golf
Proudest achievement: Building Robotics Labs at Khalifa University and King’s College London, Daughters
Driverless cars or drones: Driverless Cars
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
The Word for Woman is Wilderness
Abi Andrews, Serpent’s Tail
Results
Ashraf Ghani 50.64 per cent
Abdullah Abdullah 39.52 per cent
Gulbuddin Hekmatyar 3.85 per cent
Rahmatullah Nabil 1.8 per cent