Tourists observe the Grey Glacier at the tail of the Southern Patagonian Ice Field in Chile. The park reached 20 degrees celsius on 25 December, a record in the middle of southern winter. EPA / Javier Martin
Tourists observe the Grey Glacier at the tail of the Southern Patagonian Ice Field in Chile. The park reached 20 degrees celsius on 25 December, a record in the middle of southern winter. EPA / Javier Martin
Tourists observe the Grey Glacier at the tail of the Southern Patagonian Ice Field in Chile. The park reached 20 degrees celsius on 25 December, a record in the middle of southern winter. EPA / Javier Martin
Tourists observe the Grey Glacier at the tail of the Southern Patagonian Ice Field in Chile. The park reached 20 degrees celsius on 25 December, a record in the middle of southern winter. EPA / Javier

Was 2022 the worst year yet for climate disasters?


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From floods in India, drought in Europe, earthquakes in Afghanistan and hurricanes in America, this year was plagued by climate disasters.

It’s impossible to calculate the human cost, though. Whatever the death toll, countless lives will have been disrupted, with the United Nations estimating millions of people have been displaced, driven to refugee status by extreme weather.

In March, Tropical Cyclone Gombe struck northern Mozambique, displacing up to 2.2 million people, and killing at least 1,000. And that’s only one disaster.

This summer, heatwave records were broken across the globe. Europe particularly suffered, with the mercury reaching shocking new highs. The UK recorded its hottest temperature on July 19, when temperatures hit 40.2°C. Compare that to the average UK temperature for July, which is around 21°C. The World Health Organisation estimated that the heat caused at least 15,000 deaths in Europe, with Spain and Germany worst affected, recording 4,000 and 4,500 fatalities respectively.

In central and eastern Afghanistan, unseasonably heavy rain struck villages in August, setting off flash floods that killed at least 182 people. The country was already reeling from drought, and an earthquake that killed more than 1,000 people two months before the rainfall.

In India, flooding and landslides killed 192 people, due to a monsoon season with 3.4 per cent above average rainfall, with floods in Pakistan claiming at least 1,739 lives. A tropical storm in the Philippines killed 214 people, while in Indonesia, a 5.6-magnitude earthquake killed 344. In South Africa, 461 people lost their lives in heavy rain. Months later, more than 70 are still missing and thousands are without permanent housing.

“The theme is more extremes,” Jeff Parrish, global managing director for Protect Oceans, Lands and Waters, at The Nature Conservancy, told The National. “Bigger and longer droughts. Biblical floods in Pakistan. Tornadoes in winter. Late fall hurricanes. Arctic and Antarctic sea ice extent some of the lowest on record. We are not heading in the right direction."

Climate refugees

Climate events such as these don’t merely result in more refugees. The correlation between conflict and the climate crisis has been well documented since the desertification of fertile farming land in Syria. Between 2006 and 2010, 85 per cent of livestock died and 800,000 people lost their income, exacerbating existing tensions and playing a pivotal role in the breakout of civil war.

And, Mr Parrish said, the world is not getting any better at dealing with disaster.

“We simply can’t engineer our way out of these extremes," he said. "The best climate adaptation safeguards are those created over hundreds of millions of years by nature, and we need to protect, restore, and fortify those solutions — create habitat linkages; protect and restore wetlands, mangroves and coral reefs; continue to green our cities to reduce urban heat islands; and use nature to pull more CO2 out of the air.”

A costly problem

In financial terms, there were at least 29 billion-dollar weather disasters this year, according to a quarterly disaster report released in October. There has been a noticeable rise in disasters wreaking $20 billion plus of damage in recent years, a huge cause for concern. Disrupting global supply chains and the recovery of small communities or developing nations with little resources to cope with such disasters, are only two examples.

“Disasters that cause $20 billion of losses or more remain relatively rare and there hasn’t been such a significant increase in their number over the past 30 years as can be observed, for example, in billion-dollar disasters,” says Michal Lorinc, head of catastrophe insight for Aon’s Reinsurance Solutions.

“There were two such events in 2022 — Hurricane Ian and the European drought. Beyond primary physical impacts, secondary and tertiary losses related to large-scale disasters pose a threat to economies that can extend beyond regional boundaries.”

This includes a risk of supply chain disruption, putting additional pressure on the global economy, Mr Lorinc added.

Hurricane Ian, which hit Florida, South Carolina, North Carolina and Cuba in late September, has caused $20 billion of damage so far, with insurance broker Aon saying financial losses will continue to add up. They may even top $100 billion, according to another broker, Gallagher Re. The drought in West, South and Central Europe throughout this year has caused an estimated $20 billion of damage, while flooding in China racked up $12 billion in costs.

Cumulatively, drought damage has cost $38.4 billion globally, a figure projected to continue rising. However, there were fewer billion-dollar tropical cyclones this year than last; there were three — Hurricanes Ian and Fiona, and Typhoon Nanmadol in the western Pacific – compared to six in 2021.

Extreme weather events are becoming more frequent and more severe. Meanwhile, global CO2 emissions from fossil fuels — the main driver for climate change — hit a record high this year. This came despite a worldwide effort to curb fossil fuel-use and keep the world’s temperature rise to under 1.5°C. To achieve this, CO2 emissions must decline by 45 per cent. The outlook appears bleak; the UN Environment Programme (Unep) insisted in a report released in October that there was “no credible pathway to 1.5°C”.

Inger Andersen, executive director of UNEP, said: “This report tells us in cold scientific terms what nature has been telling us all year, through deadly floods, storms and raging fires: we have to stop filling our atmosphere with greenhouse gases, and stop doing it fast."

And unless drastic action is taken, next year may be even worse in terms of extreme weather events, although there is some hope that the world is waking up to the seriousness of the situation.

“This year, more people and more governments have come to realise that the climate crisis and the biodiversity and nature crisis are one in the same,” says Mr Parrish, who recently attended Cop15 in Montreal, Canada. “They are tightly intertwined and we can’t mitigate and adapt to the climate crisis without saving nature, and vice versa. Organisations are beginning to collaborate rather than compete, like never before, reflecting the urgency we face.”

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.”

German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

UAE players with central contracts

Rohan Mustafa, Ashfaq Ahmed, Chirag Suri, Rameez Shahzad, Shaiman Anwar, Adnan Mufti, Mohammed Usman, Ghulam Shabbir, Ahmed Raza, Qadeer Ahmed, Amir Hayat, Mohammed Naveed and Imran Haider.

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The specs: 2018 Mazda CX-5

Price, base / as tested: Dh89,000 / Dh130,000
Engine: 2.5-litre four-cylinder
Power: 188hp @ 6,000rpm
Torque: 251Nm @ 4,000rpm
Transmission: Six-speed automatic
​​​​​​​Fuel consumption, combined: 7.1L / 100km

The specs

Price: From Dh529,000

Engine: 5-litre V8

Transmission: Eight-speed auto

Power: 520hp

Torque: 625Nm

Fuel economy, combined: 12.8L/100km

McLaren GT specs

Engine: 4-litre twin-turbo V8

Transmission: seven-speed

Power: 620bhp

Torque: 630Nm

Price: Dh875,000

On sale: now

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UEFA CHAMPIONS LEAGUE FIXTURES

All kick-off times 10.45pm UAE ( 4 GMT) unless stated

Tuesday
Sevilla v Maribor
Spartak Moscow v Liverpool
Manchester City v Shakhtar Donetsk
Napoli v Feyenoord
Besiktas v RB Leipzig
Monaco v Porto
Apoel Nicosia v Tottenham Hotspur
Borussia Dortmund v Real Madrid

Wednesday
Basel v Benfica
CSKA Moscow Manchester United
Paris Saint-Germain v Bayern Munich
Anderlecht v Celtic
Qarabag v Roma (8pm)
Atletico Madrid v Chelsea
Juventus v Olympiakos
Sporting Lisbon v Barcelona

While you're here
Results:

6.30pm: Handicap | US$135,000 (Dirt) | 1,400 metres

Winner: Rodaini, Connor Beasley (jockey), Ahmad bin Harmash (trainer)

7.05pm: Handicap | $135,000 (Turf) | 1,200m

Winner: Ekhtiyaar, Jim Crowley, Doug Watson

7.40pm: Dubai Millennium Stakes | Group 3 | $200,000 (T) | 2,000m

Winner: Spotify, James Doyle, Charlie Appleby

8.15pm: UAE Oakes | Group 3 | $250,000 (D) | 1,900m

Winner: Divine Image, William Buick, Charlie Appleby

8.50pm: Zabeel Mile | Group 2 | $250,000 (T) | 1,600m

Winner: Mythical Image, William Buick, Charlie Appleby

9.20pm: Handicap | $135,000 (T) | 1,600m

Winner: Major Partnership, Kevin Stott, Saeed bin Suroor

Red flags
  • Promises of high, fixed or 'guaranteed' returns.
  • Unregulated structured products or complex investments often used to bypass traditional safeguards.
  • Lack of clear information, vague language, no access to audited financials.
  • Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
  • Hard-selling tactics - creating urgency, offering 'exclusive' deals.

Courtesy: Carol Glynn, founder of Conscious Finance Coaching

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Updated: December 29, 2022, 1:58 PM